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16

Jun 2023

Last Updated: 16/06/2023
Business
Business

Negotiations continue to find buyer for Knaresborough housebuilder

by Vicky Carr

| 16 Jun, 2023
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ilke-homes

Most of Ilke Homes' Knaresborough staff are expected to remain at home on full pay next week as the company continues to seek a buyer.

The Stray Ferret understands a small number of staff will be in the Flaxby factory to help complete some orders and send them to site.

They will be joined by managers, who have remained at the factory this week after the workers were told a week ago to stay at home while the company sought investment.

The business was put up for sale this week and a source told the Stray Ferret its owners were now in "advanced talks" with a potential buyer.

In a statement issued earlier this week, the company blamed market conditions for its current situation:

"In 2020, Ilke Homes launched its turnkey development offering, where the company acquires land, secures planning permission and develops the site. This has been complicated by uncertainty over planning policy and rising build costs.
“While having delivered strong contribution margins, Ilke Homes now requires new investment to meet overheads, achieve further scale and become cash flow positive.
“The wider UK housing market has been hit by rapidly rising interest rates, which has reduced demand and resulted in housing starts falling below pre-pandemic levels.
“Official government figures have also revealed that planning applications in England have fallen to their lowest level in at least 16 years, thanks to uncertainty over planning policy and heightened build costs, highlighting the scale of the challenge in improving housing delivery.”