Gladedale Homes will on Friday announce a debt-for-equity swap with Lloyds Banking Group. The deal should end more than two years of financial uncertainty at the housebuilder, which has a £1bn debt pile.

Gladedale is one of the UK’s largest private housebuilders, with 2,000 annual home sales . Lloyds took on its loans when it acquired HBOS and is expected to take preference shares in the company in exchange for writing off £500m of debt.