Legal & General announces that it will reduce business activity and cease new work at Modular Housing Factory in Selby

Legal & General has announced that it is proposing to reduce business activity and cease new modular production at its Modular Housing Factory in Selby, whilst commencing consultation with employees around redundancies, with 475 jobs at risk.
Michael Crossland
By Michael Crossland
Published 4th May 2023, 13:26 BST
Updated 4th May 2023, 15:48 BST

The company has stated that as a start-up business with a significant fixed cost base, a strong and predictable site pipeline is required to make L&G Modular Homes a successful sustainable business.

It said that a number of factors, including long planning delays and the impact of recent macro events such as Covid, have meant the business has not been able to secure the necessary scale of pipeline to make the current model work. Without this pipeline, the business states, it has not proved possible to build a business that can sustain the significant running costs of the large factory in Selby.

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As a result, Legal & General is also commencing consultation with all employees around the proposal to make the majority of Modular Homes roles redundant.

Legal & General has announced that it is proposing to reduce business activity and cease new modular production at its Modular Housing Factory in Selby, and is commencing consultation with employees around redundancies.Legal & General has announced that it is proposing to reduce business activity and cease new modular production at its Modular Housing Factory in Selby, and is commencing consultation with employees around redundancies.
Legal & General has announced that it is proposing to reduce business activity and cease new modular production at its Modular Housing Factory in Selby, and is commencing consultation with employees around redundancies.

Bill Hughes, chair of Legal & General Modular Homes’ Board, comments:

“Legal & General is proud of what we have achieved in bringing forward a new approach to construction through our factory. However, without the necessary scale of pipeline it is not sustainable to continue producing more modules. We are therefore reluctantly proposing to reduce business activity and cease production of new modules at the factory.

“Regrettably, this includes commencing consultation with all employees around the proposal to make the majority of Modular Homes roles redundant. We recognise this will be a challenging and uncertain period for our staff and we will be actively exploring redeployment opportunities and supporting them during this difficult time.

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“Legal & General remains deeply committed to the UK housing sector, where we have delivered 15,000 homes over the last three years, and to our valued industry partners and customers. As such, we are continuing to actively explore all options available to us and will retain a select workforce to ensure high quality delivery and aftercare services for our existing customers, whilst engaging with each of our partners regarding ongoing modular projects.”

The business added that it will be doing “all that it can to support employees during this difficult time” and will be actively exploring opportunities for redeployment.