Major house builder to sell modular factory as it exits sector
Major house builder Berkeley is expected to sell its modular housing factory after ending its interest in volumetric modern methods of construction (MMC).
The sale of the factory comes after an auction of the firm’s assets at the 160,000 sq ft facility in Northfleet, Kent, concluded this week. Auctioneers BPI hoped the sale would raise £30m as around 540 lots were listed.
FTSE 100-listed Berkeley had previously signalled a rowing-back of its plans for modular in 2023.
The Surrey-based firm said at the time that it was holding off putting the factory into full production until it had modified its product and achieved regulatory approvals.
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The announcement came at the time that Ilke Homes was fighting for its future, before falling into administration, and Legal & General (L&G) halted production at its modular factory.
Berkeley declined to comment on reports of it selling its factory and pulling out of the volumetric sector, which was first revealed by Modular Monitor.
The news marks another blow for the category one sector, and comes just a few months after Goldman Sachs-backed TopHat ceased trading.
Like Ilke and L&G, TopHat pointed to a lack of demand and difficult market conditions.
Other high-profile failures have included Homes England-backed House by Urban Splash, which collapsed into administration in 2022.
Berkeley first revealed in late 2017 that it had acquired the site in Northfleet to build the factory.
In 2021, the house builder said production would start that year, with the facility having the capacity to deliver up to 1,000 homes a year.
Former prime minister Liz Truss and her then-chancellor Kwasi Kwarteng visited the facility on the day of the now-infamous Mini Budget in 2022.
Plans for a second smaller modular facility – also in Kent – were unveiled by Berkeley two years ago, but appear to have not come to fruition.
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