Dysart Road housing development in Grantham faces uncertain future with ilke Homes in administration

The future of an unfinished Grantham housing development is uncertain after the company building it went into administration.

The half-built development of 227 modular homes on land north of Dysart Road, called Vista, has come to an abrupt halt with an uncertain future, after struggling ilke Homes called in administrators AlixPartners last Friday.

The vast majority of the company’s 1,150 employees have been made redundant and it has been confirmed that the site where all of ilke’s manufacturing takes place, in North Yorkshire, has closed and all work on development sites, including Grantham, has stopped.

A significant number of employees are reportedly taking legal action against ilke Homes over the way the redundancy process was managed.

Neighbours to Vista have reported that there has been little movement over the last few weeks on the housing development, which was to be made up of 140 affordable rent, 47 shared ownership and 40 private sale at market value.

Signs which display the ilke name, fronting Dysart Road, have been covered up.

Clare Kennedy, joint administrator with AlixPartners, said: "This is an incredibly difficult time for all associated with ilke Homes, and in particular its employees, who have worked tirelessly alongside management over recent months to find a resolution.

"Unfortunately, the market and economic headwinds have proven too strong to overcome, thus leading to our appointment. Our focus now is on helping all stakeholders, employees, suppliers and customers alike, to find the best possible outcome in this undoubtedly difficult situation for all."

Permission to build the 227 houses on a 5.9 hectare site behind 372 to 400 Dysart Road was granted in February 2016.

In November 2020, Ilke Homes acquired the development site from the Anderson Group, and manufactured all of the homes offsite at its North Yorkshire base, before being delivered to Dysart Road.

Also involved in the housing scheme were investment management company The Man Group and housing group Longhurst.

A spokesperson for The Man Group said: “We are committed to completing the investment at Grantham and creating a place that people are proud to call home.

“The situation with ilke Homes is difficult for all concerned, including those who worked there, the local contractors and the families who were looking forward to their new homes.

“We are working hard to ensure that we will be able to complete the homes as soon as possible, despite the short-term challenges.

“We are also working with our partner, Longhurst Group, to assist the families who have already moved in and to continue to deliver the aftercare services required on site.”

A Longhurst spokesperson declined to comment.