TopHat has put plans on hold to open Europe’s largest modular housing factory in Corby, Northamptonshire.

The 650,000 sq ft advanced manufacturing facility was due to start production this year employing 1,000 people with a target of producing 4,000 ultra-low carbon homes every year.

The factory was backed by a £15m debt facility with Homes England alongside funding from backers including Goldman Sachs, Persimmon and Aviva Capital Partners.

Construction work at the site is nearly complete but TopHat has put the opening on ice.

A spokesperson for TopHat, said: “TopHat continues to believe it will only be through bringing volumetric factories of the scale of Corby on stream that the UK will be able to solve its long term housing crisis.

“However, the short term market conditions mean it is prudent to pause now with the building almost complete but no equipment yet on site. We continue to develop our pipeline and will monitor conditions closely to restart when it is right to do so.”

The news comes just a few weeks after TopHat started a round of redundancies as part of a cost-cutting drive with around 70 jobs under threat.

Latest results for TopHat Industries Ltd for the year to October 31 2022 showed pre-tax losses increased to £20.4 from £19.4m last time as turnover dipped to £10.2m from £12.3m while the company employed 212 staff.