The house builder, chaired by former Persimmon chief executive Jeff Fairburn, said the agreement with the Ministry of Housing, Communities and Local Government (MHCLG) provided important liquidity support by spreading repayments for historic fire safety works over a number of years.

The Payment Plan Agreement means Avant is no longer required to undertake or procure remediation works itself on buildings covered by the Government’s Developer Remediation Contract.

Instead, eligible buildings will receive Government funding for the works, with the group reimbursing MHCLG over an agreed long-term payment schedule.

The company said the deal followed discussions with its shareholder, lenders and MHCLG and would support long-term funding while allowing it to continue delivering new homes.

The agreement was revealed in results where Avant reported another challenging year to 30 June 2025.

Revenue edged up 2% to £474m while operating profit fell by half to £8.6m from £17m as planning delays continued to restrict the opening of new sales outlets.

Legal completions slipped to 1,657 homes from 1,701, although private completions increased to 1,301 from 1,197. Private average selling prices eased to £306,000 from £310,000.

The group also strengthened its balance sheet by reducing bank debt net of cash to £88m from £117m after cutting investment in land and work in progress.

Directors said delays in securing implementable planning permissions remained the biggest obstacle to growing output despite improving mortgage availability.

Like many private equity-backed firms, Avant’s statutory results were heavily impacted by financing costs.

The group reported a pre-tax loss of £111m, compared with £83m a year earlier, after £93m of finance costs, including £75m of non-cash interest on shareholder loan notes, and £27m of exceptional charges covering restructuring, impairments and fire remediation.

The accounts also reveal a potential further exposure in Scotland.

The group said legislation under the Housing (Cladding Remediation) (Scotland) Act 2024 could require it to join a proposed Responsible Developers Scheme if it is to continue trading north of the border.

If the scheme mirrors England’s Responsible Actors Scheme, directors estimate a potential contingent liability of £68m for future remediation work. This sum is not included within the group’s existing £113m fire safety provision.