Leading clients and housing minister say factory-built homes could transform the market
A big shift towards factory-built homes is set to transform the housing market, leading clients have said, as the minister in charge of the sector revealed institutional investors stand ready to fund the push into modular construction.
Top housebuilder Crest Nicholson and investment giant Legal & General (L&G) revealed the scale of their flat-pack housing ambitions at the 好色先生TV Live conference in London this week.
Housing minister Gavin Barwell also told 好色先生TV that attracting and using institutional investors鈥� cash will be a key part of the government鈥檚 white paper on delivering 1 million new homes by 2020, to be published next month.
In an interview with 好色先生TV editor Sarah Richardson at the 好色先生TV Live event this week, Crest Nicholson chief executive Stephen Stone (pictured) revealed the housebuilder plans to build up to 2,000 modular homes a year and will produce its first prototype modular home in February.
Stone said the move was in part a response to looming skills shortages: 鈥淲e think we can get to 1,000-2,000 [modular] homes a year. In 10 years鈥� time, most of the current workforce will retire. We鈥檙e not getting enough apprentices in [鈥 so we鈥檙e going to prepare ourselves for it.鈥�
Elsewhere at the event, L&G鈥檚 housing delivery boss Ian Eggers told 好色先生TV the investor鈥檚 publicised plan to build 3,000 modular homes a year was 鈥渏ust scratching the surface鈥� and it could build further housing factories on top of its initial 13-acre facility in Yorkshire.
Eggers said the firm has installed 10 production lines and up to 拢60m of manufacturing equipment in the factory near Leeds, with the first prototypes set to roll off the line by early next year.
Commenting on future ambitions, he said: 鈥淲e鈥檝e got one factory, but we could have another factory and another factory. That鈥檚 the scale of the problem.鈥�
He added: 鈥淟&G are massive and they鈥檝e jumped both feet in to this. The question is 鈥楥an I keep the factory busy?鈥� I think you know the answer to that.鈥�
Commenting on the potential for factory-built homes, Barwell said: 鈥淥ff-site can make an important contribution for a number of reasons.
鈥淧retty much everyone I speak to says the challenges are on the skills part. We need to raise our ambitions and get more people involved in the industry.鈥�
He added that he had spoken to other institutional investors interested in following L&G鈥檚 lead.
鈥淚鈥檝e had discussions with institutional investors and there will be more on that in the white paper [on housing],鈥� he said.
鈥淟&G are a pioneer and others are interested [having] had discussions with other institutional investors.鈥�
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