Scottish housebuilder Springfield Properties is selling land to Barratt Developments as part of a partnership to accelerate the delivery of a new, 3,042-home village at Durieshill on the outskirts of Stirling.

The deal involves Elgin-based Springfield supplying land to Barratt Developments, the UK’s largest housebuilder. Springfield noted it had “driven the development through the design and planning process”.

Shares in Springfield, which are traded on the Alternative Investment Market, rose by 4p or nearly 4.26% to 98p in the wake of news of the deal.

Springfield said the deal would enable its vision for Durieshill to be realised “much sooner”.

Equity research and investor engagement company Progressive flagged its view in research published yesterday that the “50:50 strategic collaboration” between the housebuilders would reduce Springfield’s debt by more than the Scottish company’s previous guidance. Progressive expects the partnership to contribute to Springfield’s medium-term growth.

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Springfield said: “The agreement marks a significant step forward in the creation of the brand-new community and will deliver homes more quickly, offering greater choice to home seekers.

“With Springfield supplying the land, having driven the development through the design and planning process, Barratt will lead the provision of an ambitious infrastructure programme, with both supporting the delivery of much-needed, high-quality private and affordable housing.”

Progressive said: “Springfield has entered into a major partnership with Barratt Developments to accelerate the creation of the Scottish housebuilder's planned 'village' of over 3,000 homes near the strategically connected city of Stirling. The sale of the land to Barratt, as part of a new 50:50 strategic collaboration between Springfield and Barratt, will reduce debt by more than its previous guidance and should contribute to planned growth in the medium term.”

Springfield said the agreement will “expediate the investment in the city, enabling the vision for Durieshill – and the benefit to home seekers – to be realised much sooner”.

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Setting out the details of the partnership, it added: “The deal includes an initial sale of land to Barratt, with subsequent sales tied to infrastructure investment as key development milestones are reached. The infrastructure programme is set to include significant upgrades to Roman Road, electrical supply works and sewage works, providing the community with all the amenities it will need as it grows and welcomes residents.”

Initial groundworks are expected to start in late 2024, creating more than 200 jobs, apprenticeship roles and opportunities for the local supply chain, Springfield noted.

Durieshill, which spans nearly 600 acres, has already secured planning approval for more than 3,000 private and affordable homes.

Springfield described it as “one of the largest detailed planning applications for housing and community infrastructure to be approved in Scotland to date”, noting the gross development value is around £776 million.

It said: “As two of the most respected housebuilders in Scotland, Springfield and Barratt are well placed to ensure Durieshill has everything a self-sustaining community needs to flourish, including essential amenities such as new schools, local shops and business and commercial opportunities.

“The development will incorporate extensive green spaces, including woodland, community landscaping and allotments and pocket parks. The entire travel network at Durieshill prioritises sustainable travel and promotes health and well-being.”

Innes Smith, chief executive of Springfield Properties, said: “We are delighted to collaborate with Barratt on this exciting project at Durieshill. Our shared values and goals in constructing quality homes and fostering sustainable communities, combined with Barratt’s five-star reputation, will offer customers increased choice and accelerate delivery in this premier development.

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“Durieshill is more than just housing – it’s a place where people will live and work. The development of the village will inject significant investment into the local economy, making a huge contribution to the area with employment and apprenticeship opportunities in the hundreds.”

He added: “This village has been a vision of Stirling Council for over 20 years. We have worked closely with them to design a place that meets the wider requirements of the city and thank those who have helped drive this project – especially their interim chief executive and head of service with responsibilities for infrastructure and environment, Brian Roberts and Drew Leslie. We are excited to welcome Barratt to the team so, together, we can make this vision a reality.”

Douglas McLeod, regional managing director for Barratt Developments Scotland, said: “New homes, whether they be affordable, for first-time buyers, or for experienced buyers, are in huge demand across Scotland, so we are very excited to be a partner in the development of this transformational new community serving the central belt.

“The provision of quality homes in this underserved area will not only offer much-needed choice to local home seekers, it will support local employment and create demand for new amenities and services too. This is why we are investing so significantly in crucial infrastructure to serve the area, as well as making provisions for schools, shops and community spaces.”