Pace Timber Systems has signed a £10m contract with housing association Home Group to supply about 1,000 new homes using a closed panel timber frame system.

Phil Key, Pace managing director, said the “exciting” contract was a major commitment from Newcastle upon Tyne-based Home Group, a Registered Social Landlord, and was an opportunity to deliver the closed panel system in a significant volume.

He said: “What is interesting is working closely with a housing association. They really are striving for good quality housing for their clients.”

Pace will work with Home Group in developing the new closed panel system, which will incorporate insulation and conduits. It will be manufactured at Pace’s new Milton Keynes site, with the first homes scheduled to be built in Scotland later this year.

Pace will also continue to manufacture its open panel system.