This follows the company’s announcement of plans to open its latest modular housing factory in Corby, Northamptonshire.

FTSE 100 housebuilder Persimmon and institutional investor Aviva — through its Aviva Capital Partners unit — have each made a substantial investment in TopHat.

Existing shareholder Goldman Sachs Asset Management also subscribed to the fundraising round and Homes England, which funded the housebuilder’s development at Kitchener Barracks in Chatham, continues to explore the potential for additional support.

There is an estimated shortfall of 4.3 million homes in the UK, and a recent report from the House of Lords’ Built Environment Committee suggests modular housing will be instrumental in speeding up development and improving the quality of new-build homes.

The new factory which will enable TopHat to add to its current output of up to 800 homes a year from it first factory in Derby, and will employ 1,000 people — many of whom will be apprentices or employees entering the sector for the first time — working alongside advanced housebuilding robots.

Every home that is manufactured along the company’s production lines is capable of being zero-carbon, meaning no operational emissions are produced from heating and utilities.

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This can be achieved through particular building fabric and the incorporation of low-carbon technologies, such as solar panels and battery storage.

Jordan Rosenhaus, CEO and founder of TopHat, said: “Today’s announcement marks a step-change for the future of housing.

“It has been clear for some time that designing and building green, beautiful homes in factories is a critical part of solving the housing crisis.”

Dean Finch, group chief executive at Persimmon, added: “This investment provides us with guaranteed access to energy-efficient volumetric modular units, as well as TopHat’s brick façade to use with our Space4 timber frame products.

“This will provide further build efficiencies, manage the growing challenge of labour shortages in key trades and expand our product range for customers.”

Harry Swales, chief investment officer at Homes England, commented: “Modern Methods of Construction (MMC) have the potential to revolutionise the housing sector, driving greater efficiency and productivity, reducing carbon emissions, decreasing disruption caused by construction, and increasing consumer choice.

“As the government’s housing and regeneration agency, we’re committed to increasing the use of MMC, and supporting our partners in the sector to invest in it.”