The Scottish housebuilder, which told TTJ earlier this year it was looking to buy an English builder bought Manchester-based Nuthall Construction Ltd for an undisclosed sum.

The acquisition of Nuttall, which will change its name to Stewart Milne Homes, is part of a group strategy to become a leading UK housebuilder. The group already operates a £10m timber frame factory in England at Witney, which produces about 3,000-4,000 homes a year.

Group managing director Glenn Allison said the purchase would provide a platform for establishing housebuilding activities in England and a solid base for continued expansion.

Stewart Milne is looking to grow Nuttall’s output to about 750 units per year within the next five years. Nuttall already uses timber frame construction methods.

“Overall, it’s going to increase the output required in the market place from our own factories,” he said. “But we would also expect to expand production from our external customers. It’s a two-pronged plan.”

Nuttall is building houses across Manchester, Liverpool and Wigan. Flagship developments include a 250-unit residential scheme and hotel and 55,000ft2 office space at Wigan Pier.

“This is a very important acquisition for us,” added Mr Allison. “It gives us a business we can grow and it gives us a platform to establish Stewart Milne Homes in England. We are on a planned expansion process to grow our business across the UK and fully expect to further expand into new geographical areas over the next few years.”