The record demand for affordable housing in both the UK and the US appears to be having unwanted consequences caused by rising prices and shortages of building materials, shortage of skilled labor plus the rapid increase in the price of fuel.
These problems are being discussed almost daily by every offsite construction company’s management but as they find temporary solutions for one part of their overall problems, another always seems to pop up to add to the frustration.
Now the prefabrication specialist House by Urban Splash has entered administration following ‘operational issues’ with its factory, leaving 160 staff redundant
The residential housebuilder was created when developer Urban Splash bought SIG’s modular arm for £1 in 2018, including its factory in Alfreton. The business was later split off from Urban Splash, although it remained substantially owned by Urban Splash shareholders.
Last month the company said it had built its 1,000th modular home at the Derbyshire-based factory. But joint administrator Adrian Berry of Teneo has now confirmed that the business will be selling off assets to recoup money for lenders.
‘This appointment follows various operational issues relating to the factory in Alfreton,’ he said. ‘We will now look to stabilise the US House Group [subsidiary] by providing a platform to complete certain developments and explore sale options for the factory and the other development sites.’
House by Urban Splash’s schemes include New Islington in Manchester, East Float at Wirral Waters, Port Loop in Birmingham and Grappenhall Woods in Warrington. It is unclear what will happen at schemes still currently under construction.
The modular housebuilder has worked extensively with architect shedkm, which has designed many of its products and collaborated on a lot of its schemes. Other architects to work on its projects include Maccreanor Lavington and Glenn Howells Architects.
At the time of its collapse, 48 per cent of the House by Urban Splash’s shares were still owned by Urban Splash shareholders. Japanese housing giant Sekisui owned a further 48 per cent of shares while Homes England owned 4 per cent.
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Related Articles:
- Work Stopped At Urban Splash Sites And Factories
- Sekisui House Takes 35% Stake In Urban Splash
- Japan’s Sekisui House Delivers A New Town To England
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder. Email at [email protected]
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Offsite Builder, the Construction Magazine for Builders and Developers
