We live on building site after Stewart Milne collapse

The owner of a new Stewart Milne Group home fears he will be left to live on a building site after the housebuilding firm collapsed.

Callum Strachan and his young family moved into the new-build property in Stonehaven, Aberdeenshire, a month ago.

Building work was continuing on neighbouring properties until the firm went into administration on Monday, with the loss of more than 200 jobs.

The construction business, based in the north-east of Scotland, said it had faced "significant challenges" since Covid.

Mr Strachan, 27, said he had been left "high and dry" by the announcement.

“I didn’t believe it,” he told BBC Scotland News of first hearing the news. “My granny phoned and I just thought ‘no, you’ve got to be joking’.

“We’ve only just moved into a house a month ago, we haven’t got a garden, there’s repairs ongoing, I don’t know what to do.

“Outside of our house is just a complete building site, it’s a fence and then ongoing works and stuff everywhere."

He said he feared for the safety of his young son and daughter on the Dunnottar Park development.

“We have a three-year-old and a one-year-old, it’s not safe at all, somebody’s going to have to fix it," he added.

“I don’t want to be living on a building site for the next year, two years, but who’s going to pick it up?”

He said he felt “pretty confused” about the situation.

“They haven’t communicated to me but I’ve attempted to get hold of them,” he said.

Rodney Chan, 30, moved to Aberdeen from Hong Kong two years ago.

He bought a home in Cove in October last year, but said that after just three days he noticed the patio door was leaking.

Despite repairs being carried out by Stewart Milne Homes, Mr Chan said it happens again every time there is heavy rainfall.

He was expecting someone to come and assess water damage on Tuesday, but said he received a call from the Stewart Milne sales office in the morning to say the visit was now cancelled.

He is now concerned any future snagging issues will be left to him to fix and pay for.

“I just feel stranded, with no-one to help," he said.

"I know NHBC (National House Building Council) can help, but it seems they only focus on structural problems. I just feel terrible, desperate for help and I don’t know who I can reach.

“I just got an automatic reply (from the administrator) which said, you will need to reach NHBC and if they don’t cover then you will need to do it yourself then make an unsecured claim for the money.

"I don’t know who to turn to, I bought a house with such a high sum of money and now I don’t have any help.

“Now it is the patio door, but later down the line, who can imagine?”

Dylan Paris, speaking in Hamilton, said he had been a site labourer with Stewart Milne for about 10 years.

He said: “We turned up to work just as usual then around about four o'clock there was an email sent out to the gaffers to basically get everyone into the offices to sit around and go into a Teams meeting and then from there we found out that we were all being made redundant.

"So we just headed home basically.

"I loved working for the company, it was a good company to work for. So it’s devastating to see. It’s a sad end for Stewart Milne really."

He added: "I’m panicking really. I need to get another job lined up as quick as possible so I can keep paying my bills basically."

The housebuilder's collapse came after an attempt to sell the company by its chairman Stewart Milne fell through last year.

Administrator Teneo said 217 jobs would be affected.

Hundreds of other sub-contractor roles also expected to be hit.

Jane Wood, chief executive of Homes for Scotland, said she feared the situation could be repeated.

She told BBC Radio Scotland’s Good Morning Scotland programme she was “surprised” and “overall greatly saddened” by the Stewart Milne Homes news.

“It’s a tough market out there,” she said. “Housebuilding is a complex sector and it has an extensive supply chain.

"We are slightly concerned we’ll see more of this. It’s a worry."

The administrators said sub-contractors should not undertake more work for the business, and site access - to collect equipment for example - should not be attempted unless approved by the administrators.

Teneo said the company was "exploring options" but was looking to work with other developers on the completion of unfinished sites.

Buyers who have bought or reserved homes from Stewart Milne Group and have not yet moved in will be contacted by the administrators directly.

Current residents with outstanding works are asked to contact the [email protected] for further information.

The Unite union said it would explore possible legal action on behalf of members, in terms of a "lack of consultation".

The business was started by former Aberdeen Football Club chairman Stewart Milne in 1975 after he qualified as an electrician.

He postponed his retirement in an attempt to secure the future of the firm amid talks with "seriously interested parties".

Mr Milne, 73, said: "I am devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, sub-contractors, suppliers and customers.

"Stewart Milne Group was up for sale and, following significant interest, two bids were submitted. The bank has not accepted either bid and withdrawn its funding.

"I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it."