Housing Minister Esther McVey has announced a £30m boost for modular housing firm ilke Homes, as part of the ‘Construction Corridor’
As part of the Construction Corridor, the government is creating an industry that will deliver Carbon Free Homes and one that will create jobs and career opportunities for a new workforce.
The money is part of the government’s drive to make the North of England the world-leader in the creation of modern, green homes.
Homes England will provide the Construction Corridor funding to enhance production at ilke Homes factory in Knaresborough, North Yorkshire.
By next year, 2,000 modular homes will roll off ilke Homes’ production line, rising to 5,000 homes a year within the next 5 years – making ilke Homes a top ten UK housebuilder.
As ilke Homes’ factory manufactures homes using precision engineering, they are more energy efficient than traditional homes, halving energy costs compared to the average UK property.
A factory environment also allows ilke Homes to ensure a high-level of quality and consistency is guaranteed for investors, developers and residents.
The result is homes that outperform those built traditionally, with ilke’s homes established to be 100% more energy efficient than the average UK home. The Construction Corridor investment from Homes England will help drive these improvements further by allowing ilke Homes to scale up its operation.
Housing Minister Esther McVey, said: “The North of England has the potential to lead the world in the modern methods of construction that are transforming home building. An industry that when matured would be worth £40bn a year and provide up to 80,000 jobs. We need to fully embrace this.
“This £30m investment in ilke Homes is a significant step forward in the development of the ‘Construction Corridor’ – a new hub in the North that is front and centre of building the homes we need.
“It’s vital we invest in new technology to get Britain building. Homes built using modern methods can be of higher quality, greener and built to last.”
This investment builds on a previous announcement by McVey that government wants to create a centre of excellence in the north for Modern Methods of Construction to help speed-up housebuilding.
Dave Sheridan, executive chairman at ilke Homes, said: “This deal is testament to the dynamic approach Homes England is taking to address structural issues within our housing and construction industries.
“The funding will bring in further private capital, creating hundreds more skilled jobs allowing us to build more homes more quickly for first-time buyers.
“We want to continue driving efficiency, quality and sustainability within the housebuilding industry and see this as a fantastic signal to others wishing to do the same.”
The £30m is being allocated from the Home Building Fund, a £4.5bn fund delivered by Homes England.
Nick Walkley, chief executive at Homes England, said: “Our role is to be bold and take steps to speed up the delivery of homes across the country and there is huge, untapped potential to unleash by creating more capacity in offsite manufacturing.
“Modern methods of construction offer enormous benefits to housebuilding and this deal will have a transformational effect on ilke Homes’ production.”