The move will see no new investment in new property development from next year.

Kier said the “process will be managed in a controlled way to balance timing and value, with capital to be realised in line with existing development schedules.”

The property business generated revenue of £63m in the year to June 30 2026 with construction currently in progress on seven schemes.

The announcement came as Kier posted a strong set of annual results reaching an average net cash position for the first time in over a decade.

Turnover for the year to June 30 2026 was up to £4,393m from £4,087.8m as pre-tax profits rose to £83.8m from £78.1m led by the construction and infrastructure operations.

At the construction division turnover was up to £1,986.8m from £1,910.5m with a reported operating profit of £44.3m down from £54.9m as the group was hit by £32m of cladding compliance costs.

Infrastructure saw revenue grow to £2,340.1m from £2,136m as reported operating profit hit £109.8m from £89.5m.

Stuart Togwell, Chief Executive, said: “We continued to bolster the Group’s financial profile, reaching an average net cash position for the first time in over a decade, a significant milestone from which to build.

“We are building a stronger, more focused Kier, concentrating our expertise, resources and talent where we can create the greatest value for customers, shareholders, communities and colleagues.

“We enter FY27 with strong foundations and clear strategic priorities, to make the most of the sizeable opportunity in front of us. In particular, we bring good momentum into the new financial year, with recent significant contract and framework awards, strong order book growth and an expanding pipeline.”