Looking to capitalise upon growing UK interest in non-traditional housebuilding techniques and 'modern methods of construction' (MMC), Ilke Homes was established in August 2017[1] by housing contractor Keepmoat and offsite specialist Elliott Group, with financial backing by investor TDR Capital.
[24][25] However, seven months later in June 2023, site and manufacturing operations at the company's 250,000 sq ft factory were suspended, and the business was put up for sale.
[26] Directors said the business had struggled against volatile macro-economic conditions, issues with the planning system, and complicated fundraising and housing delivery.
[27][28] Investors were reportedly concerned over the rate of cash burn;[29] industry insiders attributed Ilke Homes' problems to a reliance on venture capital, the financial burden of a large factory, market factors (COVID-19, the Russian invasion of Ukraine, rising inflation), lack of government support, local authority planning processes, and uncertainty about the innovative products.
[29] Ilke backers approached major house builders including Barratt, Bellway and Taylor Wimpey in an effort to attract further investment into the business,[30] but, despite 15 interested parties,[31] with no bidders surfacing the company announced its intention to appoint administrators.
"[35] In August 2023, the collapsed company owed £249m to unsecured creditors (mostly inter-company debts suffered by equity investors), £17m to subcontractors and suppliers, £2m to tax authorities and £68m to Homes England.
")[41][42] In late March 2024, housing minister Lee Rowley told the Lords Committee that the government would be reviewing its MMC policies in light of the crisis in the volumetric house-building sector.
Ilke owed Homes England £68.7m but the government housing agency would get back just £5m of its 2019 loan to company;[45] this figure was revised downwards in November 2024 to £128,000.
The website said: "Homespace was born through the completion of a strategic asset purchase agreement, taking ownership of Ilke's trademarks, Design IP, Modular stock, and technology patents."