Warrington housing association signs £2.5bn 'flatpack' homes deal

Housing Image copyright WeLinkGroup
Image caption The modular housing uses solar panels and is low carbon and energy efficient, WeLink Group said

A housing association has signed a £2.5bn deal to create 25,000 solar-powered "flatpack" houses and up to 1,000 jobs.

Warrington-based Your Housing Group (YHG) will work with WElink Group to develop modular housing.

The venture, which also involves finance from China National Building Material Company, includes building six factories across the UK.

The government said last year it wanted to build a million homes by 2020.

Image copyright We Link Group
Image caption The group are developing an "Innovation House" in Berkeley, Gloucestershire

YHG and the renewable energy specialist WElink are exploring potential factory sites across England, Scotland and South Wales.

The venture will give a "significant kick-start" to delivering the new homes people need across the UK, a spokesman said, adding that the developments will be low carbon and energy efficient.

He said the houses would have solar panels, be at least 75% off-grid and will be built using "local supply chains and locally-sourced material and skills" where possible.

International Trade Minister Greg Hands said the announcement "has the potential to benefit local communities across the country, creating jobs, boosting local economies and creating homes".

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