Midlands-based Morro Partnerships has been appointed as the new contractor for a housing scheme in Nottingham that was stalled due to Ilke Homes’ administration.
- The Birch Fields project, valued at £20.6 million, will resume work after a year of suspension, aiming to deliver affordable housing.
- Ilke Homes’ collapse led to over 1,000 job losses and unfinished modular homes, which Morro will now complete.
- The government-backed project faced significant financial losses, with Homes England recovering only a fraction of its investment.
- Jigsaw Homes appreciates the patience of all stakeholders as work is set to restart with Morro at the helm.
In a significant development in the UK housing sector, Midlands-based Morro Partnerships is set to take over the Birch Fields project in Nottingham, an affordable housing scheme that stalled after Ilke Homes went into administration. The project, initially spearheaded by Ilke Homes, came to a grinding halt, leaving many modular homes partially completed and the local housing market in a state of uncertainty.
The £20.6 million Birch Fields development was suspended for a year after Ilke Homes, a modular housing specialist, ceased operations. Their abrupt closure resulted in more than 1,000 employees losing their jobs and left numerous homes in a state of limbo. These homes, which were manufactured in Ilke’s factory in Knaresborough, Yorkshire, will now be completed by Morro Partnerships, with the addition of four new homes to be built from scratch.
This project, partially funded by the government homebuilding agency, Homes England, highlights the risks and challenges of investing in innovative construction methods. Despite Ilke Homes attracting significant investment from both public and private sectors, the company faced substantial financial difficulties, culminating in losses exceeding £100 million over the last three years of its operation.
The financial impact on Homes England has been pronounced, with expectations of recovering merely £4.3 million from the £68.7 million finance facility extended to Ilke. The situation underscores the fragility of progressive housing initiatives amid volatile economic conditions and planning system challenges. Notably, Jigsaw Homes has publicly expressed gratitude towards the patience exhibited by the Gedling Borough Council, Homes England, and local residents throughout this tumultuous period.
The completion of Birch Fields will provide 131 homes, comprising 45 two-bedroom, 73 three-bedroom, and 13 four-bedroom units available for either shared ownership or affordable rent. This development is crucial in addressing the urgent need for affordable housing in Nottingham and is now poised for progress with Morro Partnerships focusing on delivering homes for those most in need.
Morro Partnerships’ involvement marks a pivotal step towards fulfilling the affordable housing promise of the Birch Fields project after a period of uncertainty.
