John Sisk & Son has been the leading contractor for Homes England’s site preparation work over the past two financial years, according to official figures.
- Sisk received a total of £60.3m in direct contracts from Homes England over this period, with £38.3m awarded in 2023/24 alone.
- Despite fluctuations in overall spending, Homes England’s expenditure reached a significant £68.8m with various firms in 2023/24.
- McLaughlin & Harvey emerged as the second-highest recipient of contracts, securing £12.9m over the same two years.
- Homes England’s financial strategy has faced scrutiny, particularly regarding losses from loans to modular housing firms, highlighting the quango’s risk-laden approach.
John Sisk & Son has emerged as the foremost contractor for Homes England, dominating site preparation investments over the past two years. Figures obtained via the Freedom of Information Act reveal that Sisk received £38.3m in 2023/24, an increase from £22m in 2022/23, making a total of £60.3m. This marks the sixth consecutive year of Sisk’s prevalence in receiving direct cash from Homes England. The contractor’s responsibilities include significant infrastructure delivery, notably £100m at the landmark York Central regeneration project, reinforcing its dominance in the civil and preparatory works sector.
Overall, Homes England’s engagement with construction firms has witnessed a dramatic shift. The agency’s expenditure surged to £68.8m in 2023/24 from £37.9m the previous year. This recovery followed a substantial dip to £18.9m in 2021/22 from a prior high of £38.9m in 2020/21.Such fluctuations underscore the non-linear nature of the agency’s financial allocations, a point acknowledged by a Homes England spokesperson amidst previous spending declines.
McLaughlin & Harvey stands as the agency’s second-largest contractor over the past two years, with £12.9m in earnings. Their notable project included the completion of the £14m Cottingwood Infrastructure Access Road in Northumberland. This substantial engagement highlights the agency’s continued investment in civil engineering ventures.
However, alongside its contractual undertakings, Homes England has faced financial challenges primarily due to its lending policies. The agency was sharply criticised following the collapse of modular homebuilder Ilke Homes, resulting in a nearly total loss of a £69m loan. Similarly, its £30m investment in House by Urban Splash resulted in a partial recovery when the firm went under.Despite these setbacks, Homes England’s Chief Executive, Peter Denton, defended the agency’s strategy, stating, ‘It’s not that we want to lose money, but it’s expected that we will lose money, because that’s our job: to take risks that the market won’t take.’
The financial dynamics at Homes England reflect a strategic balance of risk and investment in its contractor dealings.
