The transaction, involving land equivalent to 190 plots, is part of Springfield’s strategic effort to reduce its debt, which had risen to £67.7m by 31 May 2023, up from £38.1m the previous year. The Elgin-based company will receive £830,000 at the sale’s completion, expected later this month, with the balance due by 22 May 2024.

In addition to focusing on land sales, the company’s debt reduction plan involves suspending dividend payments, which will resume once debt has been “material reduced”.

Innes Smith, CEO of Springfield Properties, said: “We are pleased to have agreed another profitable land sale as we continue to deliver on our strategy to reduce our debt position.

“In the last two months, we have secured almost £10m in land sales, with the proceeds to all be received during the current financial year – and without any impact on our development pipeline for the coming years. We continue to receive strong demand for our large, high quality land bank.

“Accordingly, this sale, alongside others that we expect to conclude in the near-term, mean that we are well-positioned to meet our debt reduction targets.”

The housing market is showing early signs of stabilisation, with the Nationwide House Price Index indicating a 0.2% rise in house prices in November. Additionally, following the Bank of England’s November decision to keep the base rate at 5.25%, there’s growing consensus among economists that the cycle of interest rate rises may be at its peak.