Kier scraps private housebuilding in favour of social housing

Kier has announced it is planning an exit from private housebuilding to concentrate on social housing.

The firm’s chief executive John Dodds said its focus would now be on “partnership housing”, acting as a contractor for public agencies looking to build social houses.

Its £276m land bank is now being reviewed, possibly with a view to converting it to other use.

Dodds told the Financial Times: “There is a sea-change in how we’re running the business.

“The traditional model of housebuilding – buying land, putting up a house, selling it on spec – is something that will disappear from our business.”

According to the newspaper, the move will free up cash to invest in its more resilient construction and support services business.

Kier has reported pre-tax profits of £63.4m.