House by Urban Splash – a subsidiary of Manchester developer Urban Splash – has been put into Administration with the loss of more than 150 jobs.

Before closing, House by Urban Splash made modular homes from a factory in Derbyshire. These prefab homes would then be transported and assembled on construction sites.

Their homes have been used on major projects including in New Islington in Manchester.

The Urban Splash group, which isn’t affected by the Administration, confirmed that an Administrator had been appointed for House by Urban Splash.

The US House Group was a joint venture between Urban Splash and Japanese house builder Sekisui House. Homes England also had a small shareholding in the company.

Joint Administrator Adrian Berry said: “This appointment follows various operational issues relating to the factory in Alfreton, which have impacted the wider group.

“We will now look to stabilise the US House Group by providing a platform to complete certain developments and explore sale options for the factory and the other development sites.

“We would like to thank all employees and other key stakeholders for their continued support.”

The construction industry has been heavily affected by recent price increases.

The Construction Leadership Council warned that inflation in the last three months has pushed the cost of materials up by 10-15%.

A shortage of key materials like timber, bricks, plaster and steel is also making it harder to get building projects completed on time and within budget.

Tom Fox, Licensed Insolvency Practitioner at Umbrella Insolvency, said: “Should this closure be a cause of concern for construction companies in the North West? It’s complicated.

“On the one hand, modular construction is a specialist discipline. But rising prices and the prospect of recession are causes for concern in the industry.

“We know that construction is one of the industries that’s hit hardest at times of economic uncertainty.

“The pandemic was profitable for some construction companies who benefited from a wave of home improvements as more people spent more time at home. But many firms who saw their order books swell during the pandemic could see their new enquiries start to tail off in the coming months.”

If you are concerned about the financial health of your business, speak to a Licensed Insolvency Practitioner today. Call: 0800 611 8888.