Nick Walkley says quango will 鈥檙atchet up鈥 offsite requirements and expand strategic partnership programme

The government鈥檚 housing quango is to increase further the proportion of homes it expects to be delivered using offsite and prefabricated methods of construction, according to chief executive Nick Walkley.

Walkley (pictured) told Savills鈥 annual housing seminar earlier this week the housing sector had been 鈥済etting away鈥 with a failure to significantly expand its use of modern methods of construction (MMC) for 鈥渢oo long鈥.

Nick Walkley-HomesEngland-Portrait-B-HiRes098

Walkley also said that the Homes England, which administers the government鈥檚 拢12bn affordable homes programme and the Help to Buy scheme, was looking to form long-term 鈥渟trategic partnerships鈥 for delivering affordable homes with local authorities and private sector housebuilders for the first time.

Walkley said increasing the industry鈥檚 take up of MMC was a core aim of the agency over the coming years, and that it will 鈥渞atchet up鈥 expectations of those receiving funding over coming years. The agency has already said that strategic partners in the 拢12bn affordable housing programme will be expected to produce at least a quarter of their homes using MMC.

Walkley said: 鈥淕etting to scale around the modernisation of the way we build homes is absolutely critical.

鈥淭he time for talking, the time for small-scale pilots is over. I鈥檓 really worried on this the sector has been getting away with it for too long.

鈥淲hat you see in the agency is an intent to gradually but purposefully ratchet up the requirement around pre-manufactured product being part of the offer for all of our activities. And that鈥檚 not wishful thinking. We see it as absolutely essential to modernising the industry and delivering the kinds of homes that will be fit for the future.鈥

Walkley pointed to the agency鈥檚 existing efforts to support the growth of MMC firms with support for modular housebuilders Ilke, Urban Splash/Sekisui House and BoKlok, and said the agency was committed to building 5,000 MMC homes on Homes England land.

However, he said: 鈥淣one of that amounts to the seismic change that is actually required.鈥

He also set out plans to expand Homes England鈥檚 strategic partnership initiative within the next affordable homes programme (AHP) covering 2021-26, unveiled in September.

Under the current AHP, housing associations which qualify as strategic partners are able to access greater amounts of funding with greater flexibility over how they spend it, in return for promising higher rates of delivery.

Walkley said he wanted to bring in more associations as strategic partners and also expand the system to include local authorities and private sector organisations for the first.

Homes England has agreed funding of more than 拢1.7bn to just over 20 strategic partners under the current programme, with partners expected to deliver nearly 40,000 homes.

Walkley said: 鈥淲e鈥檒l be looking to expand the number of strategic partners, and we鈥檒l be calling for more housing associations to get to the scale of an alliance, or individually have a discussion with us about their ambitions.

鈥淏ut [we鈥檙e] also extending to local authority partners or to potentially places, with local authorities and housing associations, to make a pitch to be a strategic partner to access that wider range of flexibilities in return for greater delivery. We will also talk to private sector organisations.

鈥淲e want a much wider pool of strategic partners driving delivery across the country.鈥

Homes England administers the AHP outside of London 鈥 where it is worth 拢8bn 鈥 with the GLA administering the remaining 拢4bn of the programme in the capital.