HBOS announced that it has teamed up with the management of Keepmoat, the Doncaster-based builder and repairer of social housing, to buy the company in a deal worth £783m.

HBOS has backed the management team, led by chief executive David Blunt, who owns a 6% stake.

Keepmoat owns contractors Bramall and Frank Haslam Milan, which specialise in urban regeneration housing, and new-build housing business Haslam.

Keepmoat's turnover for the last financial year was £535m, and it has £3bn on its order book.