The company that makes the homes has paused production and is seeking a buyer
Plans to build up to 140 new modular homes on a seven acre site on a city estate are in jeopardy just two months after the scheme was announced.
Ilke Homes announced in April that it had bought the site on Whitehouse and planned to fill it with a mix of houses and apartments ranging in size from one to four bedroom.
The homes, because they are precision-built in a factory and craned into place, would be genuinely affordable and highly energy efficient, with not less than 30% of them available for affordable tenures, said ilke.
Subject to planning consent, the company expected them to be ready for occupation by next year.
But this week it's been revealed that ilke is having financial problems and can no longer deliver its £1bn order book of homes, consisting of more than 4,000 units throughout the UK.
Bosses have ceased production at its North Yorkshire factory and are seeking a buyer for the £28m company. They blame the problems on rising costs, "volatile macro-economic conditions" and issues with the planning system.
Their statement said: "While having delivered strong contribution margins, ilke Homes now requires new investment to meet overheads, achieve further scale and become cash flow positive."
The Milton Keynes scheme by Ilke was due to form part of the 4,330-home Whitehouse masterplan, which is being delivered by L&Q Estates and their development partner Milton Keynes City Council. Ilke had agreed to purchased the site from L&Q earlier this year.
Ultimately Whitehouse will house a secondary school, three primary schools, a health facility, indoor sports and other leisure facilities, and play areas.
Tom Heathcote, executive director of development at ilke Homes, said when the plans were announced in April: "Ilke Homes continues to expand across the South East, with today's announcement marking our first site acquisition in Buckinghamshire.
"Our teams are excited to be working alongside L&Q Estates and some of the UK's most well-known house builders as part of this fantastic consortium, which promises to deliver a well-designed community with placemaking at its heart."
Original source: Plans to build 140 'genuinely affordable' modular homes now in jeopardy on Milton Keynes estate | Milton Keynes Citizen
