Modern methods of construction (MMC) mean we can build homes faster and achieve better quality than ever before. The National Audit Office asserts that using such methods means it is possible to quadruple the number of homes built, without increasing on-site labour. Not only that, but the construction time can be reduced by half. On the quality front, MMC homes can have up to 80% fewer defects than traditionally constructed properties.
Legal & General, meanwhile, points out the value of MMC in supporting the UK to address its housing shortfall in a more environmentally sustainable manner:
“It is possible that by transforming the way we build homes in this country we can also reduce emissions… modern methods of construction (MMC) can enable the construction of beautiful, high-quality homes at speed and – importantly – with lower carbon emissions than traditional methods.”
Rosie Toogood, CEO, Legal & General
Currently, only around 1% of new homes achieve an energy performance certificate rating of A, while the construction industry as a whole isn’t known for being particularly eco-friendly. MMC, on the other hand, provides a far more sustainable way or building homes. Modular construction uses fewer materials and generates less waste, thanks to precision engineering and manufacturing. It’s also easy to include heat pumps, solar-photovoltaic cells and sustainable building materials by using MMC both off-site and on-site.
“Modern methods of construction can deliver a wide range of environmental benefits, providing low carbon homes and producing less waste than traditional construction methods. With environmental issues at the top of many governments’ agendas, a focus on MMC homes can deliver a whole range of wins.”
Dale Anderson, Managing Director, Fabrik Invest
Despite the multiple benefits, modern methods of construction haven’t yet managed to fully capture the attention needed to bring them into the mainstream. However, they were given a boost during 2020 by a government-backed memorandum of understanding setting minimum standards for MMC homes.
The National House Building Council signed up to the memorandum of understanding, which covers quality standards in the construction of both offsite homes and modular homes.
The fact that bodies such as MD Warranty Inspection Services and insurers BLP also signed up to the agreement was a step forward for MMC homes in terms of broader acceptance. After all, insurers buying into the concept will begin to make it easier for buyers to secure mortgages, giving lenders more confidence:
“Although not all lenders lend on modular housing, we are seeing more and more coming into this space, and most just require the Build Offsite Property Assurance Scheme (BOPAS) accreditation from the developer.”
Nicola Schutrups, Managing Director, The Mortgage Hut
What does all this mean for property investors? Well, it will make it easier to obtain a mortgage for an MMC home, as well as insurance. And increased investor appetite will, in turn, encourage developers to focus more on these types of properties, creating a continuous cycle of increasing demand and supply.
With so much attention on the environment right now, could this be the investment opportunity of the future? What this space to find out!
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