Ilke Homes and its prefabulous revolution

Factory-built homes specialist Ilke got an early Christmas present this week when the government agreed to invest £30m in the business.It’s a ringing endorsement for the modular housing firm, which started production last year at its headquarters in Flaxby, near Knaresborough. It is now one of the leading lights in an off-site construction revolution.Ilke Homes Executive Chairman Dave Sheridan is, of course, delighted with the cash injection from government housing agency Homes England. It will help accelerate production from two homes per day to eight while bringing manufacturing costs down.“It means we can modernise and invest in new machinery and more labour. We employ 570 people and want to go to 650. We can also think about opening factory number two,” says Mr Sheridan, who adds that the main reason for the windfall is to build more homes faster to help solve the housing crisis.As for Ilke being chosen ahead of its competitors, he says: “I think Homes England invested in us because we have built a pipeline that is the largest in the sector and we have showed true ambition.”Ilke’s assembly line can construct a home in half the time of a traditional build.

Ilke's production line at its HQ in Flaxby, near Knaresborough

A house is built as three modules with the first floor, second floor and roof delivered to site on low loader lorries. Each storey is bolted together and they can be erected within a day. They come complete with windows, doors, fully-fitted kitchens and bathrooms, plumbing, electrics and rooms that are painted, decorated and tiled.Customers include private developers and major housing associations who can choose from a range that includes terraced houses, semi and detached properties and low level apartment blocks.They buy into the benefits of Ilke’s off-site construction,says Dave Sheridan, which include better quality control, the ability to carry on whatever the weather and homes that are 20 per cent more energy efficient than the average new-build.Ilke’s processes also create 90 per cent less waste than a traditional construction site and help combat skill shortages in the building trade. Brexit is expected to cause a shortage of migrant workers and the construction industry relies heavily on them. About 28 per cent of London construction workers are from other parts of the EU and will be stripped of their automatic right to work in the UK post-Brexit.“Thirty five per cent of the labour is also over 50 years old so it is getting easier to appreciate what modern methods of construction can bring,” says Mr Sheridan.While design engineers, plumbers and electricians are still needed in homebuilding factories, most of the processes does not require traditional construction skills. Ilke has launched an academy for apprentices but most of Ilke’s workforce is trained on the job to put component parts together.Cost is not yet an overriding factor for those buying prefabricated homes in bulk. Prices start at about £65,000 for a small house, though this excludes the price of land, foundations and connection to utilities.While modular builds are now cheaper than a traditional new-build in the south, where labour costs are high. In the north, it is still marginally less expensive to construct a home traditionally.“You have to look at the whole cost not just the building costs. We can build in half the time with no weather issues and we can guarantee supply,” says Mr Sheridan, who is also contemplating the architectural integrity of mass-produced homes.“We have got to rise to the challenge of making the outsides look beautiful. If we want to sell them, they have to look attractive,” he says.

A development in Newcastle where householders are very happy with Ilke's zero carbon, factory-built homes

The future for Ilke Homes certainly looks good. It is all set to be one of the top 10 housebuilders in the UK though factory-built homes are unlikely to outnumber those that are traditionally constructed, at least in the near future.In Germany and Scandinavia where building homes in factories is well-established, they account for about 15 to 20 per cent of new-builds.“It’s below five per cent of the market in Britain and we aim to get to 10 per cent in the short-term. It’s a fledgling industry but in time there will be others like us building at scale,” says Mr Sheridan, who has started the hunt for a potential second factory.“We are looking at sites in Yorkshire and in other areas. We are also talking to the landowner about another factory at Flaxby but we need to consider the availability of labour and the infrastructure of the area as we don’t want to log jam it with lorries.”Born in God’s own county and brought up on Teesside, he adds that he is delighted that Yorkshire is Ilke’s HQ and launch pad.“Yorkshire is a great place with great energy and Northern grit.”