Editing Modular building (section)

===Upfront production investment===
The development of factory facilities for modular homes requires significant upfront investment. To help address housing shortages in the 2010s, the United Kingdom Government (via [[Homes England]]) invested in modular housing initiatives. Several UK companies (for example, [[Ilke Homes]], [[Legal & General|L&G Modular Homes]], House by [[Urban Splash]], Modulous, TopHat and Lighthouse) were established to develop modular homes as an alternative to traditionally-built residences, but failed as they could not book revenues quickly enough to cover the costs of establishing manufacturing facilities.

IIke Homes opened a factory in [[Knaresborough]], [[Yorkshire]] in 2018, and Homes England invested £30m in November 2019,<ref name="Morby-04Nov2019">{{cite news |last1=Morby |first1=Aaron |title=Government pumps £30m into modular house builder |url=https://www.constructionenquirer.com/2019/11/04/government-pumps-30m-into-modular-house-builder/ |access-date=14 March 2024 |work=Construction Enquirer |date=4 November 2019}}</ref> and a further £30m in September 2021.<ref name="Morby-27Sep2021">{{cite news |last1=Morby |first1=Aaron |title=Ilke Homes raises £60m for top 10 house builder plan |url=https://www.constructionenquirer.com/2021/09/27/ilke-homes-raises-60m-for-top-10-house-builder-plan/ |access-date=14 March 2024 |work=Construction Enquirer |date=27 September 2021}}</ref> Despite a further fund-raising round, raising £100m in December 2022,<ref name="Morby-06Dec2022">{{cite news |last1=Morby |first1=Aaron |title=Ilke Homes pulls off £100m record-breaking fund raise |url=https://www.constructionenquirer.com/2022/12/06/ilke-homes-pulls-off-100m-record-breaking-fund-raise/ |access-date=14 March 2024 |work=Construction Enquirer |date=6 December 2022}}</ref><ref name="II-06Dec2022">{{cite news |last1=O'Connor |first1=Rob |title=ilke Homes announces new £100m investment |url=http://www.infrastructure-intelligence.com/article/dec-2022/ilke-homes-announces-new-%C2%A3100m-investment |access-date=14 March 2024 |work=Infrastructure Intelligence |date=6 December 2022}}</ref> Ilke Homes went into [[Administration (law)|administration]] on 30 June 2023,<ref name="Gardiner-30Jun2023">{{cite news |last1=Gardiner |first1=Joey |title=Ilke Homes sinks into administration with most of firm's 1,100 staff set to lose their jobs |url=https://www.building.co.uk/news/ilke-homes-sinks-into-administration-with-most-of-firms-1100-staff-set-to-lose-their-jobs/5123945.article |access-date=14 March 2024 |work=Building |date=30 June 2023}}</ref><ref name="Riding-30Jun2023">{{cite news |last1=Riding |first1=James |title=Modular house builder Ilke Homes enters administration with majority of staff to be made redundant |url=https://www.insidehousing.co.uk/news/modular-house-builder-ilke-homes-enters-administration-with-majority-of-staff-to-be-made-redundant-82143 |access-date=14 March 2024 |work=Inside Housing |date=30 June 2023}}</ref> with most of the company's 1,150 staff made redundant,<ref name="Morby-30Jun2023">{{cite news |last1=Morby |first1=Aaron |title=Ilke Homes falls into administration |url=https://www.constructionenquirer.com/2023/06/30/offsite-specialist-ilke-homes-falls-into-administration/ |access-date=14 March 2024 |work=Construction Enquirer |date=30 June 2023}}</ref> and debts of £320m,<ref name="Prior-25Aug2023">{{cite news |last1=Prior |first1=Grant |title=Ilke Homes went under owing £320m |url=https://www.constructionenquirer.com/2023/08/25/ilke-homes-went-under-owing-320m/ |access-date=14 March 2024 |work=Construction Enquirer |date=25 August 2023}}</ref> including £68m owed to Homes England.<ref name="Willmore-14Feb2024">{{cite news |last1=Willmore |first1=James |title=Homes England to lose most of £68.8m it is owed from Ilke Homes following collapse |url=https://www.insidehousing.co.uk/news/homes-england-to-lose-most-of-688m-it-is-owed-from-ilke-homes-following-collapse-85135 |access-date=14 March 2024 |work=Inside Housing |date=14 February 2024}}</ref>

In 2015 [[Legal & General]] launched a modular homes operation, L&G Modular Homes, opening a 550,000 sq ft factory in [[Sherburn-in-Elmet]], near [[Selby]] in Yorkshire.<ref name="Dale-11May2020">{{cite news |last1=Dale |first1=Sharon |title=Head of Legal & General modular homes factory reveals plans for its future |url=https://www.yorkshirepost.co.uk/lifestyle/homes-and-gardens/head-of-legal-general-modular-homes-factory-reveals-plans-for-its-future-2849669 |access-date=20 March 2024 |work=Yorkshire Post |date=11 May 2020}}</ref> The company incurred large losses as it invested in its factory before earning any revenues; by 2019, it had lost over £100m.<ref name="Morby-30Nov2020">{{cite news |last1=Morby |first1=Aaron |title=L&G modular homes losses exceed £100m |url=https://www.constructionenquirer.com/2020/11/30/lg-modular-homes-losses-exceed-100m/ |access-date=20 March 2024 |work=Construction Enquirer |date=30 November 2020}}</ref> Sales revenues from a Selby project, plus schemes in Kent and West Sussex, started to flow in 2022, by which time the business's total losses had grown to £174m.<ref name="Morby-03Oct2022">{{cite news |last1=Morby |first1=Aaron |title=L&G modular homes amassed loss deepens to £174m |url=https://www.constructionenquirer.com/2022/10/03/lg-modular-homes-amassed-loss-hits-174m/ |access-date=20 March 2024 |work=Construction Enquirer |date=3 October 2022}}</ref> Production was halted in May 2023, with L&G blaming local planning delays and the [[COVID-19 pandemic]] for its failure to grow its sales pipeline.<ref name="Prior-04May2023">{{cite news |last1=Prior |first1=Grant |title=L&G halts production at modular homes factory |url=https://www.constructionenquirer.com/2023/05/04/lg-halts-production-at-modular-homes-factory/ |access-date=20 March 2024 |work=Construction Enquirer |date=4 May 2023}}</ref><ref>{{Cite news|url=https://www.theguardian.com/business/2023/may/04/legal-general-halts-new-production-at-modular-homes-factory-near-leeds|title=Legal & General halts new production at modular homes factory near Leeds|first=Julia|last=Kollewe|date=4 May 2023|newspaper=The Guardian}}</ref> The enterprise incurred total losses over seven years of £295m.<ref name="Morby-06Nov2023">{{cite news |last1=Morby |first1=Aaron |title=L&G modular homes foray amassed £295m of losses |url=https://www.constructionenquirer.com/2023/11/06/lg-modular-homes-foray-amassed-295m-of-losses/ |access-date=20 March 2024 |work=Construction Enquirer |date=6 November 2023}}</ref>