The historic deal between a Chinese state-owned firm and a housing association to create six housebuilding factories in the UK has been hailed by the housing minister.
Gavin Barwell said the £2.75bn deal shows the “potential” modular construction has to meet the UK’s housing needs.
The deal will see China National Building Material Company (CNBM) – a privately listed state-owned company – link up with Your Housing Group to build 25,000 homes per year by 2022.
Mr Barwell said: “This joint venture shows the potential modular construction has to meet the UK’s housing needs and help build a country that works for everyone.
“This government is committed to delivering a more diverse and innovative housebuilding sector and our £3bn Home Building Fund will encourage more pioneering housebuilding projects and partnerships like this one.”
They hope to drive construction costs down to £400 per square metre, from an average of £1,000, which means the homes can be let at social rent levels without government grant.
The consortium, which also includes renewable energy specialists Welink, will own the homes, with Your Housing Group providing maintenance.
A pilot of 2,000 homes will be built in Barcelona this year, while sites are found for the factories.
Original link - Inside Housing
