ilke Homes raises £60m to scale-up its operations and deliver over 10,000 sustainable homes over the next five years.

TDR Capital-backed modular housing pioneer ilke Homes has raised £60 million in a recent fundraising round, putting the company on course to become a top ten housebuilder within the next five years by delivering 10,000 factory-built homes.

The £60 million raise is split between £30 million debt from government agency Homes England and £30 million of equity from multiple new investors. 

The Guinness Partnership, one of the UK’s largest providers of affordable housing and a customer of ilke Homes, is one of the new equity investors. The housing association has signed two deals with ilke Homes in the last year, for sites that will deliver 250 factory-built homes.

Tech-focused family office Middleton Enterprises and private equity firm Sun Capital have also taken equity stakes. TDR Capital has also injected further equity.

The £30 million of debt comes via a facility from Homes England’s Home Building Fund. The Government’s housing agency invested an initial £30 million into ilke Homes back in 2019, which marked the first time the agency had ever directly invested to boost an offsite manufacturer’s production capacity, with the latest round demonstrating that ministers remain prepared to take genuinely innovative steps to intervene in the housing crisis by creating meaningful supply-side incentives to increase house building capacity.

The announcement comes at a time when the Government is championing offsite manufacturing – where homes are manufactured along production lines in a factory – as a solution to ramping up the delivery of high-quality, energy-efficient housing across the UK to tackle climate change and acute housing shortages.

Harry Swales, chief investment officer at Homes England, said: 

“Manufacturers like ilke Homes are vital if developers are to build new sustainable homes at the pace and scale the country needs. This debt facility from the Home Building Fund shows our commitment in increasing productivity and efficiency in construction to meet government’s housing delivery ambitions.”

Stephen Stone, a board member of ilke Homes who floated FTSE 250 housebuilder Crest Nicholson in 2013 while CEO, said:

“This announcement proves that there is a shared ambition among the public and private sectors to find innovative solutions to structural issues that have dogged the construction and housebuilding industries for decades. This new funding will help us create hundreds more highly-skilled, green jobs for an economy that is gearing up for a Green Industrial Revolution.

“The fact that our own clients continue to either invest or increase their stakes in the company is testament to the dynamic approach ilke Homes has taken to house building in the last three years. Faced with regulatory pressures and a requirement to meet ESG criteria, we are finding that investors are increasingly scaling up their MMC strategies.”

Stephen Robertson, founding partner at TDR Capital, said:

“The defensive attributes of residential property are attracting unprecedented levels of investment globally, but without a meaningful strategy to build greener, more energy-efficient homes at scale, we have no hope of meeting climate targets. Precision-engineering housing will be a critical solution to greening cities and with housing needs continuing to significantly outstrip supply, we are also confident that this sector is immensely scalable. We believe there is huge potential for multiple other investors to work with us on spearheading this positive change.”

The new funding will be transformational for ilke Homes, allowing the company to invest heavily in automating more of its manufacturing processes to drive efficiencies, secure more  sites and expand its ‘package deal’ strategy, which offers full development service of site, infrastructure and homes in a rapidly growing market. Both housing associations and build-to-rent operators are looking to scale up delivery of homes over the next few years, and ilke Homes’ potential to deliver modern homes quickly and sustainably is an attractive proposition to these companies.

By manufacturing offsite, ilke Homes is able to deliver precision-engineered homes twice as fast than traditional methods of construction, helping investors access revenue streams faster. 

The monies will also be used to scale-up production and accelerate capacity to deliver up to eight homes a day, up from two today – all helping to bring down manufacturing costs in the process. 

The homes delivered are also highly energy-efficient, with the company, as part of its ilke ZERO offering which was launched this year, able to deliver thousands of zero-carbon homes a year for a mix of institutional investors, private developers, housing associations and councils. The company has already delivered zero-carbon homes on five sites across the UK.

The housebuilding industry has historically lacked the capacity and resources to innovate at the pace required to meet the Government’s 300,000-new-homes-a-year target, leading to a chronic undersupply of housing in the UK, where over one million families are currently on council waiting lists. In 2019-20, just 220,600 new homes were delivered.

Meanwhile, ministers have adopted the Committee on Climate Change’s (CCC) recommendations that decarbonising the UK’s housing stock will be vital if the UK is to meet its legally-binding net-zero targets by 2050. In a report from 2019, the CCC, the Government’s independent adviser on tackling climate change, revealed that emissions produced from heating homes account for 20 percent of the UK’s total. 

Policymakers have drawn up new building regulations to ensure new-build homes built from this year are more energy-efficient. The houses manufactured by ilke Homes already meet and exceed these standards.

ilke Homes’ most recent fundraising round follows a year of rapid growth, which has seen the company grown its order book  to over £200 million, signed a sector-defining deal with FTSE 100 firm Boots UK to deliver over 600 homes in Nottingham, and appointed Crest Nicholson’s former chief executive, Patrick Bergin, as chief financial officer.

Catriona Simons, group chief executive at The Guinness Partnership, said:

“As one of the UK’s oldest housing associations, dating back to 1890, we encourage innovation and constantly invest for the future. Our investment in like Homes demonstrates our continued commitment to delivering high-quality, energy-efficient homes as quickly as possible, to those who need them most. Having partnered with the company on two sites already, we have seen first-hand the benefits ilke Homes’ method of delivery affords – which will help ensure we can continue to play an important and active role to address the housing crisis.”

Mark Farmer, a government adviser who warned his landmark report that the construction sector must “modernise or die” said: 

“The Government continues to demonstrate its support for delivery innovation in the housing market across a range of policy measures aimed at diversifying the market, improving productivity and decarbonising housebuilding. True zero-carbon homes just cannot be delivered at scale through using traditional construction methods and our constrained skills base, we therefore need to move quickly to less resource intensive and higher performing pre-manufactured solutions. However, alongside government support, the private sector increasingly needs to recognise the investment case for change and that is why this announcement as a truly joint public and private financing package for a key market disruptor is so welcome.”

David Alprovich, chief operating officer at Middleton Enterprises, said:

“Throughout our portfolio, we focus on companies that are disrupting traditional industries, have a competitive edge thanks to technology and make a positive impact on society. Thanks to its innovative, forward-thinking approach to housebuilding, ilke Homes fits all our criteria by deploying precision-engineering techniques that ultimately result in better quality, energy-efficient homes, less waste and reduced construction programmes.”


Notes to editors

 ilke Homes is a modular housing company helping to tackle the UK’s growing housing shortage by manufacturing and delivering high-quality, energy-efficient homes in half the time of traditional methods. The company works closely with local authorities, housing associations and developers across the UK to deliver housing for a mix of tenures. In 2019, the company entered into a £100m joint venture with Places for People, the largest deal yet for Britain’s modular housing sector and received a £30m investment from the government’s housing agency, Homes England. www.ilkehomes.co.uk


In December 2020, ilke Homes announced that it had joined forces with The Guinness Partnership to deliver 57 affordable homes in Drybrook, West Gloucestershire.

The partnership is delivering a mixture of one, two, three and four-bedroom homes, all of which will be made available for shared ownership or affordable rent.

All of the homes will be manufactured at ilke Homes’ 250,000 sq ft factory in Knaresborough, North Yorkshire, before being delivered to Mannings Farm. Work on site is expected to complete in December 2021, just 12 months after start on site. Whilst capable of delivering in 8 months, ilke are also tailoring their model to best suit its partners where appropriate.

Precision-engineering techniques means that the homes will be some of the most energy-efficient in the country. ilke Homes is able to manufacture its homes to consistently achieve at least a ‘B’ Energy Performance Certificate (EPC) rating, with the majority achieving an ‘A’ – making them more energy-efficient than 92 percent of the UK’s housing stock.


Over the last three years, ilke Homes has already delivered zero-carbon homes for both private and public sector clients, including Royal Borough of Greenwich, Home Group and Positive Homes, in locations spanning the UK, such as London, Newark and Gateshead.

ilke Homes recently delivered four zero-carbon homes for Royal Borough of Greenwich on Robert Street as the London Borough gears up to meet its pledge of reaching net-zero carbon emissions by 2030.

The eco-homes exceed zero-carbon standards in the UK. Each home is capable of producing energy back to the grid, showing the potential for mass market roll out using ilke Homes factory technology and the technology installed in homes. 

By using precision-engineering techniques and digital design, all four homes have an Energy Performance Certificate (EPC) rating well-above the highest category of ‘A’. In the UK, only one percent of new builds are ‘A’ rated, while the average rating is ‘D’.

Due to high levels of energy-efficiency, the new homes, which were delivered in half the time of traditional methods and came fitted with individual air source heat pumps and solar panels, will be able to be heated on as little as £1-a-day. For context, a modern gas boiler produces 12 times as much carbon dioxide as ilke Homes’ heat pumps.

By using the latest digital technologies such as Building Information Modelling – which allows manufacturers to create a digital copy of homes so that their energy performance can be modelled – ilke Homes is able to vastly improve the airtightness and quality of its homes. This ensures ilke homes can manufacture to zero carbon standards and allows residents to save huge sums of money on energy bills.

WATCH: Sky News visits the eco-friendly scheme in November on the same day that the Government announced its 10-point plan to tackling climate change

READ: CNBC also showcased the scheme in a feature looking at how modular buildings are playing an increasing role in the cities of the future

WATCH: BBC Breakfast visits ilke Homes’ factory in Yorkshire to see how homes are manufactured along production lines