Aberdeenshire-based housebuilder Kirkwood Homes has reported the largest financial loss in its four-decade history, with sales tumbling by more than £20 million amid a sharp decline in consumer confidence and challenging market conditions.
According to company filings and industry reports, the dramatic downturn marks a significant reversal for the family-owned business, which had previously celebrated robust sales and ambitious growth across the region. The collapse in sales has been attributed to a combination of economic uncertainty, higher interest rates, and a cooling housing market, which have all weighed heavily on buyer demand.
A spokesperson for Kirkwood Homes commented:
“The past year has presented unprecedented challenges for our business and the wider housebuilding sector. The sharp drop in sales, driven by a lack of consumer confidence and economic headwinds, has forced us to make difficult decisions to safeguard the company’s future.”
The company’s results reflect broader difficulties in the Scottish housing sector, where developers have faced rising costs and slowing demand. While Kirkwood Homes had previously reported annual turnovers of around £40 million, the recent financial year saw a dramatic contraction in revenues, leading to the largest loss since its founding in 1985.
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Despite the setback, Kirkwood Homes remains committed to its core markets in Aberdeenshire and Tayside. The company is reviewing its operations and exploring new strategies to adapt to the changing economic landscape.
“We are working closely with our partners and stakeholders to navigate this period of uncertainty and to position Kirkwood Homes for a sustainable recovery,” the spokesperson added
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