Homes England has agreed to lend TopHat £15m as the modular homebuilder looks to increase output to 4,000 homes a year.
TopHat said the move reflects the Government’s “ongoing commitment to the important role external construction methods, including volumetrics, will play in increasing the supply of quality new homes”.
The developer, which earlier this year raised £70m from investors including Aviva Capital Partners and Persimmon, is planning to open a new factory in Corby, Northamptonshire, next year.
The new modular factory, described as Europe’s largest, is intended to allow TopHat to increase production to 4,000 homes a year. It is currently building around 800 units a year through its existing factory in Derby.
Homes England’s decision to invest in TopHat follows several high-profile failures in the bulk market, including the collapse of Urban Splash’s Ilke Homes and House and L&G’s decision to close its factory in west Yorkshire following a loss of £174 million.
“Following some of the recent, highly publicized challenges that pioneering, innovative sectors will always face, I am especially pleased that investors of us all recognize the critical importance of expanding the capacity of this field. .”
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Peter Denton, chief executive of Homes England, said the funding will enable TopHat to create 1,000 jobs and quadruple its delivery capacity.
“It is important that we continue to support innovations that drive a diverse and efficient homebuilding sector,” he said.
“This is a long-term commitment to foster the creation of quality, prosperous places for people to live and work.”