Can Modular Housing Solve The UK Housing Crisis?

Can Modular Housing Solve The UK Housing Crisis.jpg

With house building in decline since the 1970s, it comes as no surprise that the UK is in the midst of a housing crisis that requires urgent solutions. The idea of using modular housing to build the hundreds of thousands of houses needed continues to grow in popularity, but is it a reliable option that can be used to solve the UK housing crisis? We dig a little deeper to tell you more about modular housing and some of the issues it could potentially resolve.  

What is modular housing?

A modular home is a property with all the elements of the building already built to size in a factory before being transported to the plot and built on foundations like a traditional home. They can be built much faster than more traditional methods of construction and also may cost less money to construct and buy. 

What is the scale of the housing crisis in the UK?

The cost of buying a home has risen faster than wages in recent decades, which has left many stuck in a cycle of rent unable to raise the money needed for a deposit. Low-deposit mortgages often mean highly monthly repayments, which is equally unaffordable. High private sector rents make it difficult for people to save for a deposit, while social housing construction is lagging behind targets, with only 57,644 built in 2019-20, 90,000 fewer than needed according to experts. 

In order to prevent the current crisis from becoming even worse, the UK needs to build as many as 300,000 new properties a year until 2030. However, the industry currently only manages to construct 190,000 annually and cities that have expansive building plans are struggling to find land on brownfield sites. 

Homelessness is also a growing concern, with a 169% rise occurring since 2010 (not including people in temporary accommodation) This led the National Housing Federation to identify a direct link between the rapid increase in homelessness and the housing shortage.  

Using Modern Methods of Construction (MMC) to build modular homes could also be used to solve this growing problem. Examples of this can be seen in small projects in London, with a recent test site constructed in Tower Hamlets, and an additional 200 homes earmarked for early 2022.    

Using modular homes to solve the crisis 

17% of the housing market in the UK is social housing and it provides a more affordable option for homeownership compared to the private market. With social housing construction continually failing to meet annual targets, the need for alternatives is more important than ever. 

Modular homes offer a potential solution, with construction times much shorter (a modular home can be built in almost half the time) and in some circumstances costs less than traditional builds. Of course, they still need to achieve Building Regulations standards to ensure the health and safety of occupants, a lot of which can be done within a controlled environment such as a factory.

Not only do modular homes offer a cost-effective solution, they can also help the government meet its 2050 net-zero carbon target, as they provide a more sustainable, environmentally-friendly option. Using modern techniques, some modular home suppliers can utilise materials that reduce carbon heating, hot water and cooling services to residential areas. The modular manufacturing process also reduces waste which means fewer unused materials end up on landfills.

Despite the many positives and benefits modular housing can offer, social housing providers remain rooted in traditional methods because they remain risk-averse and prefer to rely on familiar techniques. This is reflected in the small number of modular homes built in 2019, with only 1,000 of the 190,000 utilising modern construction methods. It illustrates that not only do processes need to be improved, but a cultural shift also has to take place to push things forward. 

The counter argument against modular housing 

There are some who believe that modular housing is not the sole answer to the housing crisis. Whether modular or traditional, some experts say that the capacity already exists to meet the 300,000 new homes needed each year, but due to the laborious nature of the current planning system, achieving the target is near impossible. 

A common argument put forward by developers is that the planning process often proves to be slow and expensive, due largely to pre-commencement information (related to material schedules, landscaping etc.) that is often changed and bogged down in bureaucracy. 

Industry experts also say that local council housing departments tend to focus on large and slow-to-deliver sites, which means the right sort of homes are not built in the right places. A small sites register was proposed by the industry in 2016, although this was rejected by local authorities despite developers willingness to accept a sharp rise in planning fees. 

Clearly, there is immense frustration at the barriers that continue to prevent new ideas being implemented to build the houses needed in the UK. Modular housing could play a key role in transforming thousands of lives. However, an over-reliance on traditional solutions remains the biggest issue for the housing industry to overcome. 

If you are looking into building a modular home and need a Cambridge architect to discuss your plans with, Tereyn Architects are available to discuss your project in more detail. To book your free consultation, call us today on +44 (0)7984 760920 or send us a message here and let us know all about your project.

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What is Modular Construction and how does it work?

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