Homes England owed £68m by collapsed modular housebuilder

Homes England is set to lose most of the £68m it is owed by collapsed modular housebuilder Ilke Homes, administrators’ reports have revealed.

Ilke Homes made the “significant majority” of its 1,150 staff redundant when it entered administration in June with a total debt load of £368m, including £248m of intercompany loans.

Now administrator reports for Ilke Homes Ltd and Ilke Homes Land Ltd have revealed that the companies owed their supply chain £52m, with £68m also owed to the government’s taxpayer-funded homes agency.

At the time of its collapse the Ilke had £1.4m in cash, while its remaining assets were expected to fetch a further £2.5m when the companies’ statement of affairs were penned by administrators at the end of June.

However, administrators expected to raise £20,000 from the sale of IT equipment and £400,000 from plant machinery. It is unclear whether these figures have been affected following the theft of equipment from Ilke’s Flaxby Moore factory in Yorkshire last month.

Ilke Homes is the second high-profile modular housebuilder to leave Homes England out of pocket upon collapsing, after House by Urban Splash, which had 160 staff, went bust owing £19.2m in May 2022.

Homes England owed 4 per cent of House by Urban Splash after pumping £30m into the company in 2019 in a combined debt and equity deal. The scale of Home England’s losses from House by Urban Splash are unknown.

Homes England was contacted for comment.

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