NO redundancies will result from the takeover of Dawn Homes, buyer Springfield Properties has pledged.

The Elgin-based housebuilder yesterday confirmed it has completed the acquisition of Dawn Homes in a deal worth £20.1 million.

Both brands will remain separate and take their combined headcount to around 600. Springfield’s executive chairman Sandy Adam and chief executive officer Innes Smith told this newspaper there were no plans to reduce staffing levels.

Adam said: “There will be redundancies, no lay-offs. We will be encouraging Dawn Homes, under managing director Martin Egan, to build even more of the great houses they build at the moment.”

On the prospect of further acquisitions, Smith said no others are currently on the table, but added: “If an opportunity comes up then it would be remiss not to look at it.”

The agreement will see Springfield Properties, which specialises in private and affordable properties, pay an initial consideration of £17.6m. Another £2.5m may be payable, depending upon zoning arrangements for a Dawn Homes site at Johnstone, Renfrewshire.

Dawn, which floated on the alternative investment market last October, was founded in the early 1970s. The sale does not include its development arm.

Adam said: “This was a rare opportunity to acquire a profitable company that builds great homes. Dawn Homes is a well-run business with an excellent reputation in Western Central Scotland. I am delighted that they are joining our team and welcome all their employees into our company.

“There is a massive need for more housing in Scotland and Springfield will play a significant part in addressing that need. We will be supporting the skilled Dawn Homes team to build more homes each year. Overall, this acquisition will enable Springfield to grow and deliver housing more widely across Scotland.”

The news comes amidst continued speculation about the impact Brexit will have on the housing market and construction sector. Earlier this week the latest Scottish Construction Monitor revealed a fall in confidence as employers expressed concerns about the availability of skills and labour after the UK leaves the bloc.

Vaughan Hart, managing director of the Scottish Building Federation, said 4% of the workforce – 7,300 people – is from other EU member states, adding that employers are “rightly concerned that the Brexit process could drive up labour costs”. Meanwhile, industry confidence dropped for the third consecutive survey period.

However, expressing optimism about his firm’s prospects, Smith said the need to meet the country’s undersupply of affordable housing “will not change” despite the shift in the political landscape.

Springfield expects to deliver more than 500 affordable homes this year, a “huge step up” from just two-three years ago, when it completed fewer than 100.

Meanwhile, its five village projects, including developments near Dundee, Perth and Stirling, where planning permission is yet to be granted, could create thousands of residences.

Adam said it could take up to 100 years for that legacy to be felt, adding that successors would be “proud” of today’s team. He went on: “We have the opportunity to create something really special. Building brand new villages from scratch is an awesome responsibility but we are very much up for the challenge.”