Durkan bets on social housing providers’ asset renewal
Contractor and developer Durkan is focusing on renewing the existing housing stock in the social sector. Dan Hermann, managing director of the newly relaunched Durkan Regen division, has outlined plans to expand asset regeneration to £100 million over the next five years.
Strategy shift
The Durkan Group is gradually moving away from traditional contracting and intends to triple the size of the workforce in its recently renamed housing maintenance and upgrade division.
This move follows two years of operating losses, which chairman Daniel Durkan attributed to challenging housing market conditions and unprecedented macroeconomic pressures.
Although the company saw revenue growth, this year’s pre-tax losses were driven by exceptional costs related to fire safety improvements — £9.3 million.
Durkan had to cut some construction teams, but it aims for strong growth in the maintenance sector. The shift is a response to difficulties in securing regulatory approvals under the Building Safety Act, which has slowed demand from housing associations and local authorities.
Durkan Regen — a new growth area
Hermann was appointed in 2023 with a clear mandate to develop regeneration. In February, the division was rebranded as Durkan Regen.
The company defines regeneration as asset renewal — involving planned maintenance, compliance work (damp, mould, fire safety), modernisation, decarbonisation, and recladding.
Company background
Durkan is a family business with a 55-year history, founded by William Durkan, who arrived in London from County Mayo (Ireland) in 1955. The company was established in 1970 and is now led by his son Daniel as executive chair, with Ronan Murphy as CEO.
Headquartered in Borehamwood (Hertfordshire), Durkan focuses on London and the South East. It employs 145 staff, has an annual turnover of £192 million, and builds around 400 homes per year.
Current transformation
While Durkan historically focused on new homes and commercial property, a third of the workforce is now engaged in social housing regeneration projects.
“The aim is to focus the entire business on housing and regeneration,” says Hermann. “There’s demand for both new and improved homes — we want to balance these two streams.”
Strong brand identity
According to Hermann, despite growth and transformation, the company retains the feel of a flexible, family-run business with a client-focused ethos. He values the consistency of values upheld by Daniel Durkan, preserving his father’s legacy.
Ambitious goals
Following the February launch of Durkan Regen, Hermann aims to grow it into a standalone business unit alongside the company’s main housing arm.
Last year, Durkan Regen delivered £22 million in turnover (prior to rebranding). In 2024, the company expects 40% growth in its first year under the new brand.
“Our target is to reach £100 million turnover within five years and grow the team from 45 to around 150–160 employees,” Hermann said.
Conclusion
Durkan is shifting from traditional contracting to comprehensive housing asset renewal — responding to market challenges, customer needs, and regulatory changes. The Durkan Regen rebrand and new growth strategy are efforts to ensure sustainable, long-term success in a socially vital sector.