Japan’s biggest housebuilder will move into the UK housing market with immediate effect after striking a £multi-million deal that will see it work with Homes England and Urban Splash to deliver thousands of new homes across England.

Sekisui House, one of the world’s leading housebuilders, is a pioneer of modern methods of construction, where homes are built in factories and then shipped out to sites.

The £90 million deal includes total new investment of £55 million into regeneration company Urban Splash’s ‘House’ development business. It is seen as a significant boost to the UK’s modular housing industry and will help to speed up production of much-needed new homes.

Sekisui House has invested £22 million of new equity, with £30 million of equity and debt funding coming from the government’s Home Building Fund, administered through Homes England.

Entrepreneur Noel McKee, founder of We Buy Any Car, also made a sizeable investment in the new partnership and will take an incremental 5% stake.

Yoshihiro Nakai, president and representative director of Sekisui House said: “Using modern methods of construction to build high quality homes with short build times is one of our company’s great strengths. Our technology and know-how can help resolve pressing social issues in the UK, and I want to see us play our part effective immediately. These operations can also help bring vitality to UK regions, and we will work to make the strongest connections with the local communities.”

‘House’ is expected to deliver thousands of homes across England using modern methods of construction.

Minister of State for Housing Kit Malthouse MP said: “Backed by government investment, today’s announcement will support our urgent mission to deliver more, better and faster home construction to ensure a new generation can realise the dream of home ownership.”

Sir Edward Lister, chair of Homes England (the government’s housing accelerator) said: “When Homes England launched last year we said we’d disrupt the housing market to increase the pace of construction. By helping bring one of the world’s largest and most innovative housebuilders to UK shores, we’re putting our money where our mouth is.

“By creating a more diverse landscape – where smaller builders such as Urban Splash get a stronger foothold – we’re rebuilding the building industry, driving up quality, and improving consumer choice.”