好色先生TV

The housing minister has warned that the government cannot subsidise modern methods of construction (MMC)  forever, but that it is 鈥減roportionate鈥� for it to continue investing for a 鈥渞easonable timeframe鈥�.

Speaking in front of a House of Lords select committee, Rowley stated that the government鈥檚 aspirations behind investing in MMC 鈥� including to increase the range of methods of construction, ensuring better properties are built and producing cost efficiencies 鈥� have 鈥渘ot yet鈥� been achieved.

He said 鈥渢he process hasn鈥檛 been the smoothest鈥� due to relatively changeable economic circumstances, particularly through covid, which has seen MMC housebuilders such as Ilke Homes and House by Urban Splash go into administration.

Rowley, who has been in post since Rishi Sunak鈥檚 reshuffle on 13 November, said that the question has to be, 鈥渉ow can we make this work in the long-term, how can we make it wash its face?鈥�, adding that MMC should be a 鈥渧irtuous circle, and it hasn鈥檛 got there yet鈥�.

In the 2019 manifesto, the Conservative party pledged to support modern methods of construction as part of its target to build 300,000 homes per year by the mid-2020s.

Rowley was clear that the government 鈥渃an鈥檛 subsidise forever 鈥� if we subsidise forever, it doesn鈥檛 work鈥�.

As part of evidence provided in the final evidence session for the House of Lords built environment select committee鈥檚 inquiry into MMC, Rowley said he could argue that the government may have reached a 鈥渘atural limit鈥� with traditional building methods, and said that he could also 鈥渕ake a case for subsidy over a certain period of time鈥�.

He added that he would welcome insight from the committee on what the timeframe for such a subsidy should be.

David Bridges and Edward Jezeph from Homes England also spoke at the evidence session. Bridges, chief investments officer at Homes England said that there is progress in the MMC sector, despite the focus on failures and challenges.

When asked how Homes England was measuring success, Jezeph, senior manager at Homes England, said there were 15 key performance indicators which MMC homes are measured against, including pace and cost of build, labour productivity, planning issues, safety performance, energy efficiency performance and sales performance.

Rowley said that the immediate KPI was the percentage of MMC included in the affordable homes programme, which requires strategic partnerships with Homes England under the Affordable Homes Programme 2021-26 to deliver at least 25% of homes using MMC.

Early indications show that housing providers are going beyond 25%, Bridges said.

>> See also:Everything you wanted to know about MMC but were afraid to ask

>> See also: MPs sceptical MMC can speed up 鈥榳orryingly slow鈥� New Hospital Programme

Bridges acknowledged that Homes England had lost 拢3m to Urban Splash and 拢60m to Ilke Homes, which he described as a 鈥渟ignificant loss鈥� and 鈥渘ot something we鈥檙e happy with鈥�.

Despite this, Bridges said that Homes England鈥檚 objective 鈥渋s to intervene where there is a market failure and to try and go where private investment won鈥檛鈥�, while also catalysing private investment.

Bridges stated that, in the worst market conditions, Homes England has been set the objective of recovering at least 70% of loans allocated out of the short-term fund, and at least 75% of loans granted out of the long-term fund.