Plans to deliver 227 factory-built homes in Grantham have taken a step forward with the signing of a £31M deal to finance them.

Yorkshire-based ilke Homes and finance company Man GPM has signed the deal, which as Nub News previously reported is expected to see the homes delivered next year.

The 14.6ha site off Dysart Road already has detailed planning permission from South Kesteven for an affordable and inclusive mixed tenure community.

Of the 227 factory-built homes being delivered, 140 will be made available at affordable rent levels, 47 for shared ownership and 40 homes will be for private sale at market value.

Man GPM says its Community Housing strategy aims to achieve the dual objectives of providing both social and financial returns, addressing the housing crisis in the UK by building homes that are affordable to households.

The strategy invests and develops both rental and ownership homes, with a focus on addressing the housing challenges of 'squeezed middle-income' families who do not qualify for social housing and for whom mortgages are unaffordable.

With Man Group acting as developer on site, ilke Homes will manufacture the homes offsite in the company's 250,000 sq. ft factory in Yorkshire. Once complete, the modular housing company will transport the homes to the site in Grantham.

Shamez Alibhai, Head of Community Housing and Portfolio Manager at Man GPM, said: "We are delighted to be making a positive contribution to ease the affordable housing shortage the UK is facing by delivering a high-quality modern development with a range of housing tenures.

"This investment demonstrates that it is possible to deliver high quality housing, using state of the art construction methods while also creating homes that are affordable to local residents."

"The Covid-19 pandemic has highlighted the importance of essential workers and the role they play in our everyday lives. Investment in socially responsible projects such as this one is fundamental to the Man GPM Community Housing strategy and its aim of investing in projects that positively impact the lives of residents and the broader community."

"We believe the scale of the housing shortfall across the UK requires innovative solutions and importantly ones which look after people, place and planet. Delivering ilke Homes modular housing to the Grantham site means we are not only building affordable homes but doing so in a way that also upholds our commitment to sustainable and energy-efficiency projects."

The deal, the largest investment into the modular housing sector by an institutional investor this year, represents a huge vote of confidence in offsite manufacturing, which involves homes being precision-engineered along production lines. The sector has garnered huge interest from investors over the last several years, due to its ability to deliver high-quality, energy-efficient homes at pace.

Matthew Bench, Executive Director of Partnerships at ilke Homes, said: "It's a huge vote of confidence in MMC from the institutional marketplace and it's fantastic that Man GPM are spearheading that investment."

"Our accredited, digitally-led method of delivery continues to significantly reduce construction timelines, typically by half when compared to traditional methods, helping investors access revenue streams at the earliest possible point.

"Being able to meet institutional ESG aspirations and aligning ourselves with the shift of the investment market to single family housing further underpins our near 200% growth seen this financial year."

Ian Jackson, Investment Director, Community Housing at Man GPM, said: "We're delighted to have completed our first investment in modular housing with ilke Homes, and one of the largest investments in modular housing in the United Kingdom to date.

"The overall design and quality of the homes should deliver not just high quality, energy-efficient affordable housing, but a community for families to call their own. We aim to deliver more affordable homes using modular construction, which we believe is a great housing product, and the future of the residential housing industry."

In the UK, there is an urgent need to diversify methods of housebuilding to speed up the delivery of much-needed affordable housing. A report by the Local Government Association (LGA) has revealed that waiting lists for council housing in England will almost double to two million people next year, exceeding the peak that followed the 2008 financial crisis.

The report, Building Post-Pandemic Prosperity, calls for a programme of building 100,000 new homes for social rent each year. The LGA estimates this would result in a £15 billion boost for the economy.