Demand for energy-efficient homes could spark a rise in modular housing

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The ‘Green Shoots: The Future of UK Housebuilding’ report from Make UK Modular has revealed public support for more energy-efficient homes

The research, conducted by Savanta, surveyed 2,300 adults in the UK to gauge their views on energy-efficient homes and their willingness to pay for them.

The report found that six in ten home renters and buyers consider the environmental impact of a new home to be important. 40% of the public expressed a willingness to pay a premium for an environmentally friendly home.

Young people especially want more energy-efficient homes

These measures support the government’s net-zero emissions commitment and aim to boost energy efficiency while lowering costs. The 18-30 age group shows even stronger support, with 66% willing to pay more for eco-friendly homes.

Modular housebuilding could play a major role in creating cost-effective, eco-friendly homes with higher energy efficiency and have the potential to save families up to £1,000 annually. Make UK Modular, the trade body representing modular housebuilders, has encouraged the industry to consider this form of housebuilding amid the climate crisis.

What needs to change?

They propose modernising stamp duty based on energy performance, reforming the Affordable Homes Programme, and changing the planning process to allow the construction of greener homes. They argue that this approach would meet the public’s demand for eco-friendly housing while fostering the potential of modular homebuilders to create the homes of the future.

“We are on the cusp of a green housing revolution. This report clearly shows the wide public demand for modular building methods that reduce the costs to the environment and to household budgets,” said Daniel Paterson, director of government Affairs at Make UK Modular.

“We need to see action from the government to allow for these greener homes that not only help reduce the carbon cost of construction but help the household pocket too. Government can help today at zero cost to the Treasury by introducing demand-side reforms of stamp duty rates, reforming the Affordable Homes Programme allocation for modular builders,” he added.

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