Government backing for modular construction could enable the construction of 20,000 low energy use homes across the UK, according to new research.
The latest report from trade body Make UK Modular also found that modular construction methods can halve emissions during development, cutting the amount of CO2 produced by up to 83%.
The Greener, Better, Faster: Modular’s Role in Solving the Housing Crisis report showed modular homes would cost 55% less to heat than the average British bricks-and-mortar family house, and result in savings of up to £800 a year for a three-bedroom home.
The trade body is calling for the government to fast-track the planning route for modular homes and to use modular for 20% of its affordable housing.
Fast-tracked planning reform for the sector would result in homes being built 50% faster, said researchers at Make UK Modular, as well as 4,000 jobs in low-growth, low-employment areas of the UK. It said traditional construction is struggling to deliver the government’s target of 300,000 new homes per year, with Homes England missing its 2021-22 affordable homes target by 21.5%.
Modular manufacturers produce 3,300 homes per year, representing one in 60 of all new homes in the UK. There is a contracted pipeline of 8,000 homes in place.
Researchers said there are more than 40 existing modular factories in post-industrial provincial towns or cities, which have created more than 3,000 jobs and are delivering £700m of investment.
Additionally, the report urged the government to raise energy efficiency standards for new housing, where modular already meets higher criteria than traditional buildings. It also called for stamp duty reductions based on energy efficiency and net zero performance, and a requirement for all for-sale and to-let homes to provide accurate data on energy bills.
Steve Cole, director at Make UK Modular, said: “This report shows definitively that modular is now a significant player in the UK housing market. Government must capitalise on this as opportunities to transform our broken housing market into the most sophisticated in the world do not come around every day.
“Government must accelerate modular delivery, building on the investment made and the jobs created, by removing the remaining barriers holding the industry back.”
While long-touted as a solution to the housing crisis, modular housing has struggled to take off in the UK.
Earlier this year, a modular construction joint venture backed by Japanese modular giant Sekisui, Homes England, and Manchester-based developer Urban Splash fell into administration. Administrators for House by Urban Splash cited operating issues originating at the modular firm’s factory in Alfreton as the cause.
To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @EGPropertyNews
