50% of Housing Associations to adopt MMC in next 5 years
After numerous MMC detailed reports, much pontification in the UK, Savills report our Housing Associations are to increase build using MMC. But what about the other 50%?. And what is the reason for not 100%? is this down to lack of appetite due to access to education, accessibility to unlimited supply chain? only by working with the UK's answer to MMC? Sourcing quality supply chain takes commitment, years travelling thousands of miles per year alone, substantial investment in time therefore cost.
Without appetite nothing will happen
On the basis of 'half full' not 'half empty' my opinion of collaborative working with overseas won't change, the UK is decades behind the curve unfortunately unable for OSM's provide anywhere near the production capacity to help solve our housing crisis. An unproven 'prototype led existence' it appears with a very small handful of financially backed OSM’s struggling to meet client demand. Don't get me wrong there are those UK OSM's that will thankfully grow with clients to provide solutions, over time, including progressive Light Gauge Steel factories we have met and are encouraged very much by their attitude towards growth & sustaining quality. Same goes for overseas commitment who will need to consider Premier/LABC/BOPAS to be considered so having substantial investment, sheer experience, great customer attention still requires accreditation to deliver to British standards. Not a problem on the basis supply chain build already in Scandinavia, where product that is over engineered somewhat build for far colder temperatures, which can be adapted to suit and increasing warmer weather. The piece of the puzzle they need to consider is how to deliver, simply collaborating with experienced UK partners.
The National Housing Federation reports "Housing need in England is acute. The country needs to build 340,000 new homes a year, including 145,000 social homes, but only 43,000 affordable homes were built in 2017/181.
Housing associations want to get these homes built. In 2018/19, we built 45,6042 new homes, 27% of all new homes delivered in England. In 2017/18 we invested £10bn in new housing, with £1bn coming from government grant3. We form new partnerships and plan long-term programmes of housebuilding. Yet this is a long way short of the 145,000 social homes needed each year. There are substantial external challenges that hold housing associations back. The price of land, the flattening housing market and, most critically, limited government grant all make building new social homes more difficult."
I am genuinely interested to know which OSM’s both HA’s and LA’s have visited or plan to visit over the next 5 years and the decisions they make which technology they deem more suitable, sourcing partnerships which will tick their procurement nuances. None of the OSM’s I know, represent in the Baltics, where I live or other countries (50 factories across the world) have met them so what is their experience based on? UK factories that are full of capacity currently? There is currently no comparison production capacity wise v overseas.
Changing attitudes to home ownership are reinforcing these demographic trends and therefore the way we build using MMC be whatever solution 3D Volumetric, SIPS, CLT, Hybrid etc. Savill's report on Student Accommodation "In the UK and Ireland, first time buyers have been impacted by more stringent mortgage lending requirements. The aspiration for home ownership hasn’t gone away, but the better quality purpose-built rental product on offer is making renting a desirable option, rather than a last resort."
Encouraging news of course that London Centric Berkeley Group has said it will start production at its volumetric housing factory in Ebbsfleet next year, and has hired 40 staff to run the facility. Which is great PR for the OSM industry, I wish them well. But what about the disaster stories talked about with factories spending millions and no further towards production roll-out yet? Deep pockets don't necessarily determine success.
Meanwhile overseas mega-plant OSM's wishing to explore the UK, a multitude of foreign investment funds knocking on our door asking for advice to help launch.
Off-Site Construction, Manufacturing & Development Consultant .
4 年The problem is quite simply that MMC with too much emphasis on large volumetrics does not result in market acceptance of the rigid and dull output that does not respond or relate to specific and existing environmental conditions without input from independent architects who understand market and user needs instead of leaving it up to large factories with expensive equipment constraining the necessary planning and design necessary for desirable product and how it should fit into each project surroundings. There needs to be an interim function with market sensibility to bring manufacturing and real estate development to acceptable solutions that can satisfy the economic needs of both factions. There is a better way!
Off-Site Construction, Manufacturing & Development Consultant .
4 年Because they look like the boxes they really are and do not satisfy the functional and aesthetic needs of the occupants.
Ed Tech | University Account Management
4 年Kenneth Horlock
MBA-Qualified Entrepreneur ? Drives Positive Change Through Innovation ? Employee & Stakeholder Engagement Expert
4 年My first thought was why isn’t it 100%. I agree with the comments that many housing associations are risk adverse and capacity is a real issue. The other main factors include the power of house builders to collude to resist change that threatens their profits and land banking by said same organisations and others that artificially inflates the price and restricts the availability of land. The MMC sector needs to demonstrate it can provide attractive well designed homes that outperform traditional housing on energy efficiency, space standards, better functionality and flexibility to change layout and extend and the MMC sector must pass on cost savings to give housing associations more for their buck not just the same number of units more quickly. It would be great if the MMC sector had something positive to say about making social housing more affordable as this is the elephant in the room. Housing in this country is far too expensive and the cost of housing to rent and buy will be where the battle lines are drawn in 2020.
Asset Operations Manager
4 年I agree there is an element of apprehension with landlords to adopt MMC. You only have to look at the post war construction of prefabricate units and that’s the starting block. If you can convince and deliver a pitch, which will guarantee that history will not repeat itself .... then I think you will get interest.