State of MMC delivery in social Housing

Modern methods of construction (MMC) use offsite manufacturing to construct good quality, sustainable homes. They are a crucial tool to meet increasing housing need. The NHF and Building Better have therefore jointly surveyed housing associations to understand how MMC is being used in the social housing sector.

The survey ran from June to December, 2023. 57 housing associations responded. Together, they are responsible for 45% of all homes delivered by housing associations. The organisational size, geography, and number of homes owned varied widely between respondents.

In 2022/23, respondents completed a total of 5,276 homes using MMC and started 6,667. The survey distinguished between MMC systems, revealing that nearly all completed homes used panelised assemblies (category 2) or panelised and non-structural assemblies (category 2 and 5). Volumetric construction (category 1) was used in just 7% of completions.

Another aim of the survey was to identify both the main barriers to MMC and the key benefits of it for housing associations. The results revealed that supplier vulnerability was seen as the biggest barrier to increasing the use of MMC. By contrast, procurement issues were not seen as the most significant barrier by any respondents.

This year, the survey asked about the main benefits of MMC for the first time. Environmental sustainability was the top or second top benefit for two thirds of respondents. The respondents identified the fact that MMC makes it easier to meet the Future Homes Standard as the second most significant advantage.

The survey results give us important insight into ongoing housing association appetite for offsite construction. They paint a positive picture of the number of MMC homes which could be built over the next 5 years. Together, the respondents are planning 30,591 MMC homes by 2028.

The survey revealed that for those respondents using MMC, 32% of their total developments used offsite construction. If this trend continues, the sector-wide appetite for MMC homes could be 107,000 by 2028.

Overall, the results show that there is already significant MMC use in the sector, and that there is great potential for increases over the next 5 years.

Source: National Housing Federation