The firm has new-build deals with Welwyn and Hatfield Council for 29 new rented homes and Milton Keynes Council to develop 80 new homes, spread across seven infill sites around the city.

Together the projects will cost around £16m to build with work starting on the Milton Keynes projects in Spring 2017.

The firm revealed the move into new-build and wider housing management as it unveiled half-year revenue up 8% to £466m, but pre-tax profits down 5% at £18.2m, due to contract mobilisation costs on several new maintenance contracts and challenges in the care home sector.

David Miles, Chief Executive, Mears, said: “We have positioned ourselves to provide a broader service offering in housing to a market where we are seeing an increasing blurring of the boundaries around social, affordable and private rented housing.

“While the level of spend on one-off refurbishment projects has reduced, we are seeing a high number of new development opportunities with existing customers.

“During the last 12 months, Mears has broadened its service capability to include the provision of new build services, primarily targeting our existing housing clients.”

He said that Mears would continue to focus on housing maintenance delivery and under the new wider services model contract out new-build activity.

“Mears is not a property developer, general builder or asset holder and will focus on managing assets for the benefit of owners and client public sector bodies.”

He added that housing maintenance was on track to deliver 10% revenue growth over the year, after securing deals with Milton Keynes Council, extended regional coverage with the Home Group and being re-awarded contracts with Sutton Housing Partnership and Sedgefield Borough Council.

Its Manchester City Council joint venture is the last material re-bid this year, with the existing contract due to expire in March 2017, and the tender process is on-going.