The issues with site infrastructure were confirmed in a trading update which also announced integration of the Yorkshire East region into Yorkshire South and West this summer to cut costs.

Gleeson said: “Our new management teams have identified issues on previously completed legacy developments, mainly in Yorkshire, which require rectification in order to achieve adoption of the roads (and other statutory services) by the relevant Local Authorities.

“As we work through these issues we expect to establish cost provisions in the current financial year estimated at between £5.2 million and £7.1 million, for remedial works to be undertaken over the next three to four years. It is expected that Adjusted results for the current financial year will exclude these legacy site provisions.

“From 1 July, the Yorkshire East region will be integrated into Yorkshire South and West. The creation of one Yorkshire region, and reallocation of certain sites into the Midlands region, will improve the efficiency of those regions, refocus our investment into higher return land opportunities and generate annualised regional overhead savings of £0.9m.

“The related costs are estimated at up to £3.1 million, comprising cash restructure costs of £0.3m and the non-cash impairment of certain conditionally purchased land assets of between £1.5m and £2.8m, and will be recognised as an exceptional item in the full-year accounts.”

Graham Prothero, CEO, said: “Whilst it is frustrating that further work is required on a number of legacy sites, I am pleased with the determination of our new management teams to identify and rectify legacy issues which now allows Gleeson Homes to look forward with confidence.

“The business as a whole is now in a much stronger position to manage through this period of uncertainty and capitalise on the significant opportunities we see ahead when the market returns to growth.”