A LEADING housing provider believes it will help 'address the balance' and 'meet demand' in the sector after signing a £2.5 billion deal.

Your Housing Group (YHG), which has offices in Birchwood, is partnering up with WElink Group and China National Building Material (CNBM) to construct the 'energy efficient modular' homes.

CNBM is putting £2.5 billion towards the deal, with YHG providing an additional £250 million.

YHG is targeting development of 4,000 homes a year in each of the six factories due to be built once they are up and running.

The factories will be located in the north west, north east, Midlands, south Wales, south west and Scotland.

The scheme is anticipated to create up to 1,000 jobs across the country.

The housing association said WElink will provide the 'energy solution', while CNBM will deliver a key 'structure of funding' required to build the houses.

Stephen Haigh, chief executive of joint-venture company Live Verde, said the operation will continue as long as there is 'demand' in the sector.

He added: "YHG is a big housing association in the north west – we own and manage around 33,000 houses.

"These will be highly energy efficient homes. Technology has moved on leaps and bounds.

"We are bringing in really creative partners to take this project to a larger scale.

"We are here to provide houses to those in need – and not just affordable homes.

"We want to get to a point of building 24,000 properties a year.

"YHG wants to address the balance in the housing sector.

"There has to be demand for this, it will be driven by that. We want to meet that demand.

"We will drive down the cost of building and make houses better for customers."

The first factory is expected to begin operating this year, with one site due to open each year thereafter.