A project by Ilke Homes in Essex is facing setbacks as unfinished homes are set to be partially demolished before construction resumes.
- Construction at the Meadow Grange development in Southend-on-Sea halted over a year ago after Ilke Homes entered administration.
- A total of 32 incomplete structures will be reduced to the floor slab level, awaiting a new contractor.
- The anticipated demolition process is expected to take around four to five weeks.
- By late 2024, Ilke Homes had plans for a large residential scheme that included sustainable housing.
The Meadow Grange development by the modular housebuilder Ilke Homes, situated in Southend-on-Sea, Essex, has faced significant challenges. Construction ceased in June of the previous year when Ilke Homes collapsed into administration. Over a year later, the task of appointing a replacement contractor remains unfulfilled, leaving the project in limbo.
The Guinness Partnership, responsible for letting the housing units, announced that 32 of the partially completed houses would need to be demolished back to the floor slab level. This decision precedes the selection and appointment of a new contractor, ensuring that future construction work can proceed without hindrance. The demolition is poised to commence shortly, with a projected completion timeframe of four to five weeks.
Ilke Homes originally outlined a vision for a high-quality residential scheme consisting of 221 homes on undeveloped greenfield land near Fossetts Way. Notably, a quarter of these homes were designed to be energy self-sufficient, aligning with contemporary sustainability objectives. Construction had commenced in November 2022 with a target completion by autumn 2024.
Despite its ambitious goals, Ilke Homes faced financial difficulties leading to its downfall. The entity, established in 2017 with the goal of accelerating housing production, reported a turnover of £12.7 million for the financial year ending March 2021 but incurred a staggering pre-tax loss of £33.9 million. Contributing to these woes was the volatile macroeconomic climate and obstacles within the planning framework.
The company’s financial troubles also extended to its investors, including several private equity firms and the government-backed agency Homes England, which potentially stands to lose £64.5 million. While some Ilke sites, such as the Birch Fields scheme in Nottingham, have resumed operations, the Meadow Grange development continues to await its revival.
The Essex project awaits its revival as preparations for demolition pave the way for future development.
