Modular housebuilder in talks with interested investors
North Yorkshire-based modular developer ilke Homes is up for sale, citing “volatile macro-economic conditions and issues with the planning system”.
The firm, which has paused production at its 250,000 sq ft factory in Knaresborough, has said that the sale would allow it to deliver its pipeline of 4,200 homes.
It is thought that ilke have approached Barratt, Bellway and Taylor Wimpey as they seek a potential buyer following several rounds of fundraising over the past two years.
And, by the end of the week, ilke stated that they were in talks with 15 potential investors to secure the future of the business, which demonstrated a “clear appetite” to reach a deal.
The news follows Legal & General’s decision in May to stop producing homes, and raises questions about the future of modular build in the UK.
Meanwhile, Bellway has seen private reservations fall by almost 30% compared to the same period last year.
In a trading update for the period from 01 February to 04 June, the developer reported “encouraging” and “healthy” customer interest, but found that its average private weekly reservation rate slumped to 139 from 198 in 2022.
While customer interest is currently healthy, the Board remains mindful that cost of living pressures and the uncertain path of future interest rates could impact housing demand.
Jason Honeyman, Group Chief Executive, Bellway
Notwithstanding this,
Bellway’s experienced teams,strong balance sheet and high quality land bank, position the Group well
to successfully navigate changing market conditions and continue to play an important role in increasing housing supply in the years ahead.
However, the firm did reiterate that it was on track for full-year volume output of 11,000 homes for its year ending 31 July 2023 (2022: 11,198).
Housing output falls as tender price forecast increases
Latest official figures from the Office for National Statistics (ONS) have revealed that construction output is estimated to have decreased by -0.6% in April 2023, with a 3% fall in private housebuilding being one of the main contributors.
ONS data also shows that material prices rose 8.4% in the first four months of the year.
Meanwhile, Rider Levett Bucknall has raised its tender price forecast for the year to reflect stubbornly high interest rates.
In its Q2 2023 report the cost consultant predicted a 4% uplift across the UK in 2023; an increase from 3.5% set out in its report for the previous quarter.
New Building Regulations come into force as transitional period ends
The twelve-month grace period for new Building Regulations ended this week, on 15 June.
The revised regulations now apply, affecting:
- Part F (Ventilation)
- Part L (Conservation of fuel and power)
- Part O (Overheating)
- Part S (Infrastructure for the charging of electric vehicles)
The new Part L regulations aim to reduce carbon emissions for new homes by 31% against the previous 2013 Part L rules, and is a stepping stone to the Future Homes Standard (FHS) regulations, to be implemented in 2025.
The FHS regulations state that new homes must achieve a 75-80% reduction in emissions.
NHBC Pride in the Job Quality Award winners announced
Plenty of champagne will be flowing this weekend, following the NHBC’s announcement of its Pride in the Job 2023 Quality Award winners.
Out of more than 8,000 entrants across the UK, only 444 were selected as Quality winners, which celebrates the best site managers and their commitment to raising standards in housebuilding.
The Quality Award winners will now go on to compete for Seal of Excellence and Regional Awards in the autumn. Regional Award winners will be in with the chance of winning the national Supreme Award, revealed in January 2024.
A full list of all winners can be found here.
It is important we recognise the vital role site managers play in ensuring new homes are delivered on time, on safe sites and to exacting construction quality standards.
Steve Wood, CEO, NHBC
This accolade recognises the best site managers across the UK and celebrates how much all the winners have inspired their teams by going the extra mile to deliver homes of the highest quality.
Housing View 