The government is working up plans to provide public land and money for new modular construction factories in a bid to kick-start the sector.
Speaking to Property Week after the long-awaited housing white paper was published, Homes and Communities Agency chair Sir Edward Lister (pictured) revealed that the organisation was already in talks with developers about providing “financial support” for modular construction factories.
“Many of the developers won’t want to do this on their own; they’re going to want to offset some of the risk, so I think we will see factories owned by more than one developer, with us coming in as well,” he said.
The HCA, which will be renamed Homes England in the summer, had also identified multiple public land sites for modular construction factories, he said, and was talking to developers about opportunities.
“It’s early days but we’re beating the drum a bit to see who else comes forward,” said Lister. “There’s absolutely no reason we shouldn’t build factories on some of our big sites.”
In the white paper, the government confirmed that its £3bn Home Building Fund - administered by the HCA - would “create new opportunities for the use of modern methods of construction”.
It also pledged to hold councils to account if they do not deliver enough homes and to ensure developers start on site faster after they obtain planning permission.
The housing white paper was cautiously welcomed by the industry. Helen Gordon, chief executive of Grainger, said the white paper “recognised that this country needs homes to rent as well as to buy”, while Melanie Leech, chief executive of the British Property Federation, said the reforms to planning would be “vital to the cause of building more homes”.
However, measures to encourage councils to seize “stalled” sites attracted opposition. Colliers’ director of residential development, Toby Greville, pointed out that it was “rarely in developers’ interests to land bank”.
Original link - Property Week
