Housebuilder Springfield Properties has announced plans to float on the stock market in a deal which could see it raise funds for the construction of five new ‘village’ ­housing developments.

The Elgin-based private and affordable homes developer said the move to join the Alternative Investment Market (AIM) would enable it to raise up to £25 million for the 15-20-year project.

Springfield Properties said that, over the past four years, it had secured land or entered into other arrangements relating to the development of the five villages, which will incorporate 10,000 homes overall on completion. The sites have a gross development value of £1.5 billion.

Incorporate both private and affordable ­housing, the villages, based near Edinburgh, Stirling, Dundee, Elgin and Perth, will also have retail facilities, amenities, and local schools.

Sandy Adam, executive chairman of Springfield, said: “Throughout our history, Springfield’s strategies have achieved our aim of steady growth, doubling the company in size every five years. Our turnover exceeded £100m for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.

“Raising these funds is part of our strategy to secure ongoing growth at the same rate. The new funding will enable us to invest in the infrastructure of five new Villages in Scotland, and in existing sites, accelerating the delivery of new homes, private and affordable, in new communities.

“Scotland needs more homes countrywide and Springfield is poised to play a significant part in delivering these homes for private individuals and across all tenures in the affordable and social housing sector.”