MMC & GOVERNMENT POLICY

Ahead of a parliamentary debate expected in September, the House of Lords has published a briefing that examines the use of modern methods of construction (MMC) in the housing industry

Published on 9 August, the paper outlines both MMC use and how government policy towards this construction method has developed in recent years, including various strategic reports issued by parliamentary committees in the House of Lords and the House of Commons. It also details the newly elected Labour government’s position on house building and other recent developments relating to MMC.

“The House of Lords Built Environment Committee was critical of the Conservative government’s approach to MMC and called for a coherent strategy to promote MMC use in housebuilding. The new Labour government has said it will publish a new long-term housing strategy in the coming months,” the briefing states.

On 5 September 2024, the House of Lords is scheduled to debate a motion “to move that this House takes note of the role of modern methods of construction in the housing construction sector.”

It follows a short inquiry by the House of Lords Built Environment Committee, which took place between October 2023 and January 2024. In the report’s conclusion, published on 26 January, committee chair, Lord Moylan said:

“We believe that modern methods of construction can have an important place in UK housebuilding, especially in the context of an ageing skilled workforce and the inefficiency of traditional housebuilding methods. This is based on the evidence we have heard about its successful use in the non-housing construction sector, its widespread use in countries overseas, and its potential to drive gains in efficiency and productivity identified by Homes England and others. We welcome the Government’s wish to see these new methods of construction prosper.”

However, the committee also stated that the approach to MMC was in “disarray” and that the then government had “not set out clear objectives for the investments and funding it provided”.

“There is evidence of real barriers to MMC, such as risk aversion on the part of warranty providers, insurance companies, and insufficient clarity for building regulations. However, the government appears to have made limited effort to understand and address these challenges.

“If the government wants the sector to be a success, it needs to take a step back, acquire a better understanding of how it works and the help that it needs, set achievable goals and develop a coherent strategy.”

Homes England has also acknowledged the benefits of MMC’s use in the housing sector. As part of its annual report, published on 29 July 2024, it stated: “We continue to develop a growing evidence base for MMC and the opportunity it provides to create further housing delivery capacity.”

Following Labour’s win in the general election, Secretary of State for Housing, Communities and Local Government Angela Rayner confirmed that a “new long-term housing strategy” would be published in the “coming months”. As part of its election manifesto, Labour had committed to taking steps to ensure the building of “more high-quality, well-designed, and sustainable homes”. However, it is currently unclear what this will entail in terms of MMC use.

You can access the full briefing paper here.

Source: FPA