Places for People announces £100m modular homes deal

750 units will be purchased under the partnership to develop affordable and market-priced housing.

modular

Backed by Housing Minister Kit Malthouse MP and Homes England, Places for People and modular manufacturer ilke Homes have announced one of the biggest modular housing deals the UK has seen.

Under the £100m partnership, 750 units are due to be purchased from ilke Homes, including 500 for sites that Places for People already own and 250 for new schemes to develop affordable and market-priced housing.

The group is set to deliver a further 25,000 homes over the next few years, and has been supported with grant funding by Homes England, a government body responsible for increasing housing delivery.

As reported by 24housing, earlier this month, the government body partnered with Japanese developer Sekisui Homes on a £90m scheme to deliver new homes.

David Cowans, CEO of Places for People, said the deal would accelerate delivery of homes and cut costs.

“This is just the start for off-site manufacturing, and as placemakers, we are going to invest even more in modular,” he added.

The government is currently chasing a target of 300,000 new homes a year by the mid-2020s, against current delivery of roughly 200,000.

Malthouse added that the announcement coincides the governments “urgent mission” to deliver more, better and faster homes construction.

Dave Sheridan, executive chairman at ilke Homes, said: “Our deal with Places for People will help continue to grow our capacity and is a huge vote of confidence in modular housing and Homes England deserves huge praise for its entrepreneurial approach to accelerating delivery.”

On Homes England’s continued support, chair Sir Edward Lister said that it’s this kind of innovation in the private sector that will “disrupt” the housing market and set to meet the country’s housing demand.

Kate Henderson, CEO of the National Housing Federation, spoke on the deal, adding that the fact that the partnership has been led by a housing provider “speaks volumes” about where the sector is currently at.

“Offsite manufacturing is an opportunity to build high-quality homes, support communities and invest in skills through the jobs it creates,” said Henderson.

“It clearly provides huge benefits for accelerating delivery and improving energy efficiency.

“Housing providers are well-placed to take a long-term, strategic view around the delivery of new homes, and I am delighted to see the likes of Places for People and ilke Homes on the vanguard of change across the housing sector.”

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