Innovation methods of construction can speed up the delivery of housing but rationing lies behind the shortage, says Nicky Gavron
London is in the midst of a housing crisis. The capital is delivering less than half and perhaps only a quarter of the new homes it needs annually. On behalf of the London Assembly Planning Committee, I am embarking on a review that will seek to assess the potential of offsite-built or modular housing to bridge the gap between housing need and supply.
This investigation comes at a time when the mayor of London is encouraging innovative methods of construction and new supply models to speed up the delivery of housing. However, two of the biggest things preventing housing being delivered are the capacity of the conventional housebuilding industry and developers’ marketing strategies that seek to ration supply to maintain sales prices.
I want to understand the things that have held up the adoption of modular housing more widely and pinpoint the potential role the mayor could play in removing barriers for more offsite-built homes and incentivising the sector. The investigation will also address the suitability of this type of housing for the mayor’s new London Living Rent product that could be delivered by housing associations and local authorities. It could form part of build-to-rent schemes.
I want the answers to three key questions:
1. What is the potential for offsite-built housing to help solve London’s housing crisis?
2. What are the factors that have prevented, and are still preventing, the adoption of this type of housing more widely?
3. What role can the mayor play in removing barriers and accelerating the use of offsite housing for London’s new homes?
During the review, I expect to look at a number of areas, including:
- What barriers are there to delivering such housing more widely – including guaranteeing demand, establishing production facilities, overcoming any negative image and securing funding?
- What financial models are needed to support modular housing and how resilient are they likely to be in the Brexit environment?
- How might the mayor support and stimulate the use of modular housing in London, for instance, through specific planning policies, the use of his own and other public land, design guidance and use of housing grant?
- Under what conditions can offsite housing represent an attractive solution – particularly in relation to different types of sites, densities, types of housing need, meeting the need for affordable homes and energy efficiency?
- How might the mayor act strategically to enable a critical mass of demand to give more certainty to investors and offsite manufacturers to invest in production facilities and improve supply chains?
I am particularly interested in views from: offsite house builders, contractors and those involved in the supply chain, housing associations, local authorities, private rented sector specialists, the retirement housing sector, investors and the low carbon sector. Views from residents living in modular homes are also very welcome.
If you would like to contribute to this investigation, you can download the call for evidence from the investigation page and email your written submission to planningcommittee@london.gov.uk.
I will publish my report with recommendations to the mayor, boroughs and the industry early next year.
Nicky Gavron AM, deputy chair of the London Assembly Planning Committee
Original link - Inside Housing
