GreenSquareAccord searches for buyer for offsite manufacturer

“However, the landscape has changed significantly and while it has been a difficult decision to exit, it is a necessary one.

“We have a strategic objective to simplify and strengthen our organisation to enable us to focus on our core offer and to realise our vision of being a great social landlord.

“We are in active discussions with interested parties and remain hopeful [about] finding a buyer. However, having made the decision to exit LoCaL Homes, this cannot continue indefinitely and if we are unable to [find a buyer], we will close the factory in spring 2026.”

Last year, GSA reported its first-ever surplus of £3.9m, following the landlord’s exit from loss-making care services and impairments on care and support schemes.

GSA is not the only organisation to pull out of offsite manufacturing over the last couple of years.

Over the past two years, two major modular builders – Ilke Homes and House by Urban Splash – have gone into administration. Homes England had invested £60m in Ilke and provided a debt facility of £26.9m and equity of £3.1m into House by Urban Splash.

The government agency expects “limited recovery” of its Ilke investment and full recovery of its Urban Splash loan, but not the equity.

A House of Lords inquiry concluded that the government’s approach to modern methods of construction (MMC) is in “disarray” and “simply throwing money at the sector hasn’t worked”.

One of the UK’s largest housing association developers told the inquiry in December 2024 that it was not commissioning these homes, as the costs are not “workable” and could be up to 50% more than traditional projects.

Lord Moylan, who led the inquiry, described it as “hilarious” that the government’s MMC taskforce, which was given £10m when set up in 2021, has never met since it was announced.