More than 1,000 jobs expected to be lost after Knaresborough property firm falls into administration

Established five years ago, Flaxby-based ilke Homes’ client base includes major institutional investors, housing associations, volume house builders and local authorities.

Its website boasts the credo "Building the future" but the company has now brought in the administrators.

In a statement, the administrators said the move would see the immediate closure of the manufacturing facility in Flaxby and the cessation of all site activities.

A “significant majority” of the company’s 1,150 staff are to be made redundant, they said, with only a small amount remaining to oversee the administration process.

Writing on Linkedin, Nigel Banks, R&D director at Ilke Homes, called the situation "a very sad day."

"We completed over 40 sites in five years and have created great homes and communities for hundreds of families,” Mr Banks wrote.

"Sadly our plane has run out of fuel.

"It is landing with a crash that will impact many people inside and outside the business.

"I am truly sorry that this has happened."

Clare Kennedy, joint administrator and a partner and managing director at AlixPartners said: “This is an incredibly difficult time for all concerned, 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, leading to today’s 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.”

Ilke has blamed tough economic conditions and challenges with the planning system for its financial situation.

At the start of June, the private equity-owned firm, which secured £30million from government agency Homes England in September 2021, was forced to pause its operations.

It put itself up for sale, saying its 4,200-home pipeline “will not be delivered” without a new investor.

More than 80 ex-employees of who have lost their jobs are now said to be set to take legal action over the way the redundancy process was managed.