Housing developer ceases trading due to losses on two schemes
Liverpool-based Elite Homes has ceased trading following losses incurred on two developments on Merseyside.
The developer is a division of long-standing private rental company Elite Estate Developments, which is unaffected by the move and continues to trade successfully.
The closure follows financial difficulties with the building contractor at Elite’s Damfield Meadows development in Maghull and Glenavon Park scheme in Prenton.
Complications caused by lockdowns, plus supply shortages and dramatic hikes in materials costs saw both developments run at a loss and posed significant financial and operational challenges to the contractor.
Steven Latham, managing director of Elite Homes, said that litigation to recover monies to complete both schemes will soon be instructed.
He said: “The houses are built and occupied but work remains to be done on issues such as landscaping and snagging to ensure both estates are completed to the standard that we and the residents had hoped.
“We have instructed our lawyers to commence the litigation process and we must now await the outcome of that.”
While litigation commences Elite Homes has been closed down.
Mr Latham added: “This is a very regrettable outcome and my job now is to fight hard with our legal advisors to secure the funds to complete the schemes.
“We have written to all residents to keep them up to speed with our efforts on their behalf and will share new information with them as we reach each legal milestone.”
Damfield Meadows consists of 14 four-bed detached homes, with 32 similar units developed at Glenavon Park. All homes have been sold on the open market.
Elite Estate Developments has a number of private rental units under management. The company is based in Waterloo, North Liverpool.