UK Planning Lags Behind Off-Site Construction But Lending Is Another Story

With a short of 4 million homes in the UK our ambition, along with many other Off-Site Manufacturer (OSM) advocates is to join the dots as far as a solution for our country. OSM is very timely for what is a traditional industry set in its ways. The obstacles are being slowly over-come 1. Quality assurance and accreditation 2. Cost and speed of delivery 3. Mortgage-ability 4. Investors & Lenders 'reservations' and somewhat lack of serious participation, until recently that is.

The facts;

• The UK has a 'cottage industry' with 4 substantial Volumetric OSM's in existence, one of the largest producing only 1,400 apartments per annum. Overseas OSM's across the Baltics alone dwarf the UK combined with many different solutions from other countries including Spain, Turkey, Germany, America etc. The MMC in the UK is currently immature and without serious investment over years he cannot fulfil targets without outside support, on a major level
• Debt providers shy away from Off-Site on the basis of tangibility, realisation of assets and what they consider pure risk. However things have improved with far more high street lenders taking the plunge, apparently around 25 are now convinced and are lending so in turn Development 'Debt' providers are having to re-consider serious participation and things are changing
• Build-to-rent is a huge growth sector Off-Site Manufacture including Student Accommodation and PRS
• Architects tend to shy away from Modular as they don't understand it - a contentious statement so I await the constructive and various challenging parties to my debate, granted, but never-the-less an assumption cannot be made that all architects are welcoming Modular with open-arms. Those that do are championing it I am pleased to report including James Walsh at Anyo, OWAL and others
• Consideration for OSM's to set up factories on site for larger developments seems to make sense for some schemes and encouraging firms to put local people in to work, serious consideration for academies to train a mix of skilled and semi-skilled workers to build much needed homes
• No official statistics as far as we know for the use of Volumetric in the UK
• Within a House of Lords report recommendations have been made to provide KPI's to ensure Off-Site is seriously considered and if not why not?
• BRE consider timber frame structures dominate the market with an increase of light-gauge steel-frames catching up fast. Albeit Cross-Laminated Timber emerging as favourable, issues around Grenfell Tower property developers are mindful of the risks associated
• The government's ￡1 Billion investment through the Home Building Fund to develop new strategies with design and construction
• The UK construction industry is heavily reliant on Eastern Europe some of which are returning home on the basis of BREXIT, mis-informed perhaps and obviously confused and concerned like the rest of us!
• Traditional build methods allow for last-minute on-site changes which is a plus for developers and planners but compared to OSM the benefits are limited. Planners lag behind as far as the latest OSM technology somewhat living in the past albeit some are willing to learn more and be educated. Housing Associations like Swan are building their own factory and grabbing the 'bull by the horns' which is encouraging news for our country - I wish more would follow but the reality is that we cannot rely upon the UK to solve the housing crisis alone. Workshops for Local Authorities, Developers and Investors are happening monthly including our own CLICK HERE
• Contractors such as Mace are supporting modern methods of construction including OSM with the use of Bathroom pods, elements and volumetric solutions