Ilke Homes searches for buyer to deliver £1bn order book

Yorkshire-based modular house builder ilke Homes is exploring a sale of the business to secure additional funding and deliver its £1bn order book consisting of a 4,200-home pipeline. The company attributed its financial troubles to volatile macroeconomic conditions and issues with the planning system that complicated fundraising and housing delivery. Ilke Homes raised £100m from investors last year in what was thought to be the largest fundraising by a British modular housebuilder. The investment was attributed to allowing the company to develop 4,000 homes a year and open another factory, in addition to its 250,000 sq ft factory in Knaresborough, North Yorkshire. Ilke Homes’ issues are followed by Legal & General proposal to reduce business activity and cease new modular production at its factory in Selby, North Yorkshire last month. Speaking on L&G’s decision to close its Selby factory, an ilke Homes spokesperson had told EG last month: “The problems faced by L&G Modular – namely planning delays, macro events and labour shortages – are not exclusive to the modular housing sector, with builders across the country facing similar conditions.” They added: “Investing up front in capital-intensive manufacturing capability will help address growing skills shortages in construction, and we are proud of the training and employment opportunities now being provided at our Yorkshire facilities. “Without the kind of investment we are making, Britain will not be able to achieve the capacity needed to tackle the housing and climate crises.” To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG or @EGPropertyNews