Landlord to demolish homes left half-built by collapsed modular builder

Work on the scheme in Southend-on-Sea, expected to be made up of 221 affordable homes, stalled last June after Ilke went into administration. 

At the time, the modular house builder said that with “significant incremental investment”, the business “returned to growth” following the COVID-19 pandemic, but then “faced the challenges of unprecedented inflation and a lack of land supply linked to planning processes”.

“As a result, despite a strong product and pipeline, the business has been unable to secure the further investment needed to take it forward,” it said. 

It emerged a few months later that Ilke owed more than £68m to Homes England and £227m to equity investors.

In February, administrators announced that Homes England would lose the majority of the money owed (£64.5m).

Housing association Jigsaw Homes had also contracted Ilke for a development in Nottingham, which led to it being stalled. 

Ilke had manufactured all but four of the homes planned for the Rolleston Drive development before entering administration.

The social landlord, which manages more than 35,000 homes across the North West and East Midlands, announced in July that it had appointed Morro Partnerships to finish the 131-home Birch Fields scheme. 

It comes after another modular house builder entered into administration last month. 

Modpods appointed administrators on 12 August. The builder folded under relocation costs and difficult trading circumstances.

Greenwich Council had been working with Modpods on two sites through its Greenwich Builds programme. The London council said some of its new homes will be delayed after the firm’s “frustrating” collapse. 

Modular house builder TopHat has also faced a winding-up petition. It announced earlier this year that it was planning to make around 70 staff redundant and was pausing opening its 650,000 sq ft new factory in Northamptonshire.

Correction

10.36: 13/09/24 This piece originally said 131 partially completed homes will be demolished. That is inaccurate – there are 32 partially completed homes that will be demolished. There will be 221 affordable homes in total.