GreenSquareAccord to close offsite manufacturer after failing to secure buyer

Mona Shah, GSA’s chief finance and investment officer, said: “Despite our best efforts we have not been able to secure a viable sale, and this means we must now move forward with the closure of the factory.

“While this is disappointing news, it is a necessary decision in the circumstances. As previously outlined, LoCaL Homes has been operating at a loss, and we cannot continue to subsidise this.

“At the same time, GSA faces a challenging financial landscape and must prioritise investment in existing homes over new development. We also have a responsibility to focus on our core offer and deliver on our vision of being a great social landlord.

“Our focus in the coming weeks and months will be on supporting the 35 colleagues who work for LoCaL Homes and working with our remaining customers as we progress the closure of the factory.”

In 2025, GSA reported its first-ever surplus of £3.9m, following its exit from loss-making care services and impairments on care and support schemes.

The landlord is not the only organisation to pull out of offsite manufacturing in recent 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 to 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.