The scheme, which sits on College Road, is being delivered through a £23m partnership between the modular housing company and housing provider.

Supported by Homes England, the formerly derelict site on the Holmer Trading Estate has now been cleared and will be transformed to tackle the local growing demand for affordable housing, with works set to commence in April.

It is set to deliver 74 affordable rent and 46 shared ownership homes, comprising a mix of one-, two-, three- and four-bedroom properties.

Upon completion, all homes will be underpinned with accreditations from NHBC.

All units will be manufactured along production lines at Ilke Homes’ 250,000 sq ft factory in Knaresborough, North Yorkshire, a facility that is backed by a £30m investment from Homes England.

The site, which was secured by Ilke Homes from the landowners and subsequently bought by Stonewater last year, is the first project the modular housing firm has secured under its full development turnkey offering , which involves the housebuilder leading the entire development programme, from site identification and gaining planning consent through to developing the scheme and installing the factory-built homes.

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John Hickman, development director for the Midlands and North at Ilke Homes, said: “While the housing market has remained largely insulated from the wider economic downturn that we’ve seen as a result of Covid-19, rapidly rising house prices have meant that affordability levels are at an all-time low.

“Since launching our full development turnkey offering, we’ve been able to offer housing associations, councils, investors and developers a solution to housing delivery that provides certainty over construction programmes. 

“We look forward to continuing to work with the forward thinking housing provider Stonewater to deliver this 100% affordable scheme.”

Matt Crucefix, director of development for the South and West at Stonewater, added: “Tackling the housing crisis requires ambition, innovation and speed of delivery without jeopardising quality, which is why we’re committed to working with our partners to deliver affordable, well-designed homes that our customers and communities can be proud of.

“We’re proud to be building on our strong development pipeline in Herefordshire — an area where we’re currently providing more than 260 new affordable homes — to deliver this progressive development opportunity with Ilke Homes.”