Cash-strapped house builder and brownfield developer Inland Homes has breached a loan covenant with banker HSBC.

In a stock exchange announcement the firm confirmed: “Inland Homes has advised HSBC that  it considers that its subsidiary Inland Homes Developments Ltd is in breach of certain historic and forward looking covenants in relation to a debt facility of £13.6m provided to that company. 

“The facility is guaranteed by Inland Homes plc. 

“The total amount drawn under this facility from HSBC to date is approximately £11m. Inland Homes plc is in active discussions with HSBC regarding waivers for the breaches and a further announcement will be made in due course.”

The breach comes two months after veteran house builder Jolyon Harrison was appointed as CEO in a bid to turn the business around.

He joined after Inland delayed publishing its latest results for the year to September 2022 while a series of accountants went through transactions in the books. Losses are expected to hit £91m.

Harrison’s plan is for Inland is to pivot from its traditional market in the South and South East of England and focus on new low-cost home developments in the North.