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Government should set target of 75,000 modular homes per year by 2030, major report finds
A target of 75,000 homes per year should be set for the modular housing sector, a new report by a major government advisor has found.
Co-authored by Mark Farmer, the government’s modern methods of construction (MMC) champion, and Mike De’Ath, partner at HTA Design, Build Homes Build Jobs Build Innovation calls on the government to make modular the driving force behind its ‘build, build, build’ agenda.
It argues that up to 50,000 new jobs could be created if the government were to set a target of 75,000 modular homes being delivered per year by 2030.
An investment programme would also help the government meet its target of achieving net zero carbon emissions by 2050, as research suggests modular construction can reduce carbon emissions by up to 40% compared to traditional methods.
To achieve the modular target, the government is being urged to use the upcoming Autumn Spending Review to announce an “enhanced Affordable Housing Programme (AHP)” with incentives for using modular solutions.
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This could include a First Homes initiative that is better targeted at increasing the use of modular, the report said.
The next AHP, which will run from 2021-2026, currently has the target that 25% of homes delivered through strategic partnerships must be built using MMC. However, more specific details about these requirements are yet to be announced.
In addition to an incentivised grant programme, the report is also calling on Homes England to create a national level brokerage platform that brings buyers and sellers of modular housing together at scale.
The government appointed Mr Farmer, who is chief executive of the construction consultancy Cast, as its MMC champion in November last year.
In 2016, he authored a government-commissioned report called Modernise or Die as part of the ‘Farmer Review’, which identified important failures in the UK construction industry, including a lack of research and development.
On today’s report, Mr Farmer said: “We have come a long way since I published Modernise or Die in 2016, but the country still needs to build more homes, quickly. Modular manufacturing is the single biggest gamechanger when it comes to building more homes.
“Government support and investment in the modular construction of homes will deliver the UK Industrial Strategy’s skills, productivity, technology and carbon reduction objectives. Increasing modular delivery into the market will also enable a new generation of innovators, from SMEs to large UK and international businesses investing and operating in the UK, offering more choice to home buyers and renters.”
Mr De’Ath said: “Our experience of designing modular manufactured housing over the past decade demonstrates the huge benefits to housing delivery. New modular homes outperform traditional new homes in nearly every area, not least the quality of build and speed possible through innovation.
“Our ambition for 75,000 new, beautifully designed, modular homes is realistic and achievable, so our ask of government therefore is simple: help us stimulate and then galvanise the demand for modular homebuilding. With this help, a sustained long-term pipeline can underpin investment in manufacturing to deliver the quality homes we need while creating the jobs we want.”
