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Modern construction methods such as offsite and modular construction are now becoming more popular, aiming to improve productivity, efficiency, and sustainability in the construction sector. The increasing adoption of pre-designed and prefabricated houses are shifting the majority of the construction process from building site to factories. Key factors driving the growth of offsite construction are housing demand, labor and material shortages, sustainability, and cycle-time inflation.
The UK government announced the investment of around US$ 14.45 billion in the form of an Affordable Homes Programme to deliver 180,000 new homes across the UK from 2021 to 2026. In addition, public and private investments of US$ 47.71 billion in affordable housing programs are released; thus, the construction sector is gearing up with the challenges in building affordable housing and redevelopment of brownfield sites with a net zero 2050 target. Offsite construction is the best suitable option to accelerate the affordable housing construction process with high efficiency and sustainability.
The major challenge of the UK construction industry in using offsite technologies is the negative reputation created by prefabricated housings built in the 1950s. However, the quality of offsite homes has improved significantly in recent years. Moreover, the increase in the capacity for offsite house manufacturing and several systems with quality assurance and warranties are propelling demand for offsite construction in the UK. Several firms and proprietary offsite housing systems are obtaining Buildoffsite Property Assurance Scheme (BOPAS), National House-Building Council (NHBC) certification, and warranties. BOPAS certification provides durability, maintenance, and process accreditation so that the main lenders such as NatWest, Barclays, and Lloyds will be interested in offering mortgages for offsite-built homes.
The UK government set minimum standards for modern houses in late 2020, further strengthening the confidence in the quality and durability of offsite construction. The new standards will apply to all homes built by modern construction methods. Various industry bodies and warranty providers, including NHBC, BLP insurance, and MD Warranty Inspection Services (MDWIS), have signed a memorandum of understanding (MoU). This MoU helps create confidence in the quality and durability of these offsite homes among potential customers, insurers, and lenders.
Until now, limited government funding is also a notable challenge that hindered market growth and the potential companies’ ability to enter this space. To increase the number of offsite houses, the government has rolled out Homes England’s Strategic Plan 2018-19 to 2022-23 with a budget of around US$ 33.82 billion. Home Building Fund of US$ 5.64 billion has been allocated to SME developers who cannot obtain finance, turnkey manufacturers, and self-builders in offsite construction. Furthermore, US$ 1.25 billion of the Housing Delivery Fund in collaboration with Barclays is also allocated to ensure easy credit availability for SME builders.
Many driving factors, such as increasing offsite housing manufacturing capacity and increasing number of offsite housing firms providing BOPAS certification and warranties, are driving both demand and supply of offsite construction and the necessity of increasing affordable housing supply the important factor. The uptake of offsite construction is best possible with innovative, lightweight, and high-performance used in prefabricated buildings.
The usage of digital technology in offsite construction is showing a positive impact on the construction industry. In the volumetric modular technology, Building Information Modeling (BIM) and Design for Manufacture and Assembly (DfMA) protocols ensure the optimal configuration of offsite solutions by connecting different teams from the beginning of the design process. Volumetric technology integrates with Enterprise Resource Planning (ERP) and Material Requirement Planning (MRP) to improve simulation, visualization, and virtual assembly modeling.
To know more and gain a deeper understanding of the construction market in the United Kingdom, click here.
