Network Homes, L&Q and Clarion Call for Increased Investment in Modular

A new report commissioned by Network Homes, L&Q and Clarion has called on housing associations and Homes England to make offsite construction a priority through the promotion of joint ventures.

Housing associations will need to double their development outputs to 80,000-100,000 new homes a year in the 2020s, according to the final report of the ‘Future Shape of the Sector Commission’, chaired by former cabinet secretary Lord Turnbull.

The commission took in evidence from more than 60 key organisations within the residential sector exploring how housing associations should evolve over the next 10-15 years. The project was led and managed by a secretariat from Network Homes, L&Q and Clarion HG, working with Lord Turnbull and leading figures from Henley Homes, Resolution Foundation, Aspire Group, Riverside Housing and The Housing Finance Corporation.

Its key findings included highlighting that offsite construction is “an essential element in the drive to scale up production whilst keeping costs down” as the sector requires “major upscaling in output” utilising £20bn of funding in the sector. The commission said housing associations needed a step change in financial innovation, risk management, strategic use of assets, new technology and greater collaboration and partnerships with others.

The report called on Homes England, in its ‘active investor’ guise, to invest in the right offsite construction vehicle to rally housing associations behind a unified solution and generate increased order volumes.

Helen Evans, chief executive of Network Homes, said: “Offsite construction has huge untapped potential. If we are to deliver the homes that we need, the sector needs to get behind this kind of innovation. As well as its potential speed and environmental benefits, offsite construction can overcome construction skills shortages on site, particularly if more migrant workers choose to return to their homelands following Brexit.

“Better collaboration and joint working is key, and the Commission’s report clearly shows that concerted action is needed from all the main players in the market, including Homes England.”

Original link - Property Week