As housebuilders grapple with an increasingly volatile market, can offsite methods help get ‘Britain Building Again’ and boost capacity? Trevor Richards, Operations Director for offsite experts Cogent Consulting, explains how.
The ongoing skills shortages, sharp fluctuations in material costs and the cost-of-living crisis are putting immense pressure on the housebuilding industry. The Chancellor declared in her Spring Budget, that the Government expects to ‘undershoot’ its manifesto target of 1.5 million homes in five years, estimating there will be fewer than 1.3 million cumulative net additions to the UK housing stock between now and March 2030.
Since the 1940s, net housing supply has only neared 250,000 homes per annum alongside a substantial social housebuilding programme – or with government intervention – the Help to Buy scheme between 2013 and 2022. We have not even got out of the starting blocks and after announcing significant investment to deliver 18,000 new social and affordable homes, the government is rowing back on its housing targets already.
Based on responses from 31 of the largest housebuilders, a report from the Home Builders Federation (HBF) found that 17,432 ‘Section 106’ affordable housing units with permission remained uncontracted in October 2024, with work on 139 building sites delayed – so will the £2billion injection of investment announced on 25 March, be enough to get anywhere near the downgraded targets with such deep and divisive issues? The Section 106 situation shows we need creative thinking here to develop new financial models to encourage independent housebuilders to deliver much needed social and affordable homes at speed and scale.
Councils, local authorities and registered providers have to consider the significant role offsite construction (OSC) and offsite manufacturing (OSM) can play to overcome the traditional skills shortage and the housing crisis. To get anywhere near the 1.3 million downgraded target, I firmly believe increasing cost-efficiency, productivity and quality through offsite construction is crucial to success.
The need for speed
We all know that offsite construction enables homes to be built more quickly compared to traditional methods, as a significant portion of the work is done in a factory while groundwork is prepared on-site. This parallel working can cut construction time by up to 50%, allowing for the rapid delivery of housing developments. Speed is critical in addressing the UK’s pressing need for new homes, where shortages and high demand have driven up costs and created affordability issues. Given the UK’s urgent need for new housing, fast-tracking building programmes are crucial to meeting the government’s annual target.
Standardisation and scalability
Offsite manufacturing revolutionises the way we build homes, enabling the mass production of standardised housing elements that can be rapidly assembled on-site. This efficiency is further amplified by the use of pattern books, where pre-approved design templates take standardisation and scalability to another level.
Scalability is essential to meeting the government’s ambitious housing targets within the current five-year term. Offsite construction allows developers to rapidly increase output, especially in high-demand areas.
In addition, consortium procurement is gaining traction as a powerful enabler. By fostering collaboration and pooling resources, this model strengthens supply chains, creates more predictable pipelines of work, and significantly enhances the capacity to scale.
Cost reduction and efficiency
By manufacturing building elements (panels, pods and modules) in a controlled environment, OSM can reduce waste and optimise the use of materials, leading to lower overall costs. This has the potential to make some housing projects more affordable and can help address the financial barriers that have limited the development of new housing, particularly in areas where land and labour costs are high. The ability to produce homes at a lower cost without compromising quality makes OSM an attractive solution to the UK housing crisis. As OSM becomes more widespread, economies of scale will further lower costs, helping to tackle the affordability issues that are central to the UK housing crisis. The standardised production process makes housing projects more predictable in terms of costs and timescales which is essential for delivering affordable housing.
Consistency and quality
Factory-built elements are subject to rigorous quality control, ensuring that they meet a wide range of industry standards, regulations and requirements. This is especially important for large-scale housing projects where consistent quality can ensure building performance and reduce long-term maintenance costs. Creating buildings in a controlled factory environment with suitable controls provides a better opportunity for greater consistency and quality assurance, thereby positively reducing the number of defects or the need for repairs experienced on-site. This potential for consistently high build quality should also ensure that the expectation between design performance and as-built performance is much closer.
Environmental impact
Offsite construction promotes sustainable building practices by minimising on-site waste, reducing the carbon footprint associated with traditional construction, and enabling the use of eco-friendly materials and technologies can contribute to creating energy-efficient homes, aligning with the UK’s net zero carbon goals. With sustainability concerns becoming an increasingly important part of urban planning, OSM can help deliver homes that meet strict environmental standards while addressing the housing shortage.
Offsite methods and factory manufacture offer innovative, scalable, and sustainable solutions to address the UK housing crisis. They can deliver high-quality homes more quickly and efficiently than traditional methods, while also addressing affordability and quality concerns. But smart pipeline management is needed to create a better model for this all to work. By focusing on repeatable, standardised solutions, offsite construction can provide high quality housing for all facets of the UK population, help achieve housing targets and alleviate pressure in high demand areas.
