Offsite housing business to close after failing to find buyer

A major Midlands housing association has revealed it will shut down its loss-making offsite housing business after failing to find a buyer.

Last September, GreenSquareAccord (GSA) announced plans to sell or close its subsidiary LoCaL Homes.

However, in an update late last week, GSA confirmed it will close the business, which it called a “necessary decision in the circumstances”.

GSA’s chief finance and investment officer Mona Shah 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.”

LoCaL Homes’ Walsall-based factory is expected to close this spring.

Redundancies are expected among the firm’s 35-strong team, although some could be redeployed by GSA, a spokesperson told Construction News.

Shah previously said GSA was “hopeful” a buyer could be found as it was in active discussions with “interested parties”.

But GSA, which manages 25,000 homes, said the wider organisation faced a “challenging financial landscape” and it needed to focus on investing in its existing stock.

LoCaL Homes built low carbon timber-framed homes that were sold to GSA, as well as other major housing associations.

It also worked on projects with Vistry, Fitzpatrick Group and Burmor Construction, according to the firm’s website.

LoCaL Homes recorded a pre-tax loss of £4m on a decreased turnover of £5.6m in its last full-year accounts to the end of March 2025.

Shah said: “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.”

The spokesperson added: “All colleagues are part of a consultation exercise. Where suitable vacancies exist, we will redeploy colleagues internally.

“However, regrettably, where this is not feasible, redundancies will be made.”

GSA leases LoCaL Homes’ factory, so it will be negotiating an exit with the landlord, the spokesperson added.

LoCaL Homes is the latest offsite manufacturing business to face difficulties.

Offsite specialists Elements Europe, Merit Holdings and Thurston Group all fell into administration last year.

However, former directors of Merit have now set up a new firm and Yorkshire-based Thurston was rescued by a buyer last month.

The two most high-profile failures in the modular housing space have been Ilke Homes and Legal & General Modular, who both called time on production in 2023 after years of losses.