{"id":39098,"date":"2018-03-05T10:19:02","date_gmt":"2018-03-05T10:19:02","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=39098"},"modified":"2018-08-14T16:12:07","modified_gmt":"2018-08-14T15:12:07","slug":"can-modular-housing-deliver-for-the-private-rented-sector","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/mmc-news\/can-modular-housing-deliver-for-the-private-rented-sector\/39098\/","title":{"rendered":"Can Modular Housing deliver for the Private Rented Sector?"},"content":{"rendered":"

To support their target of creating 1 million new homes by 2020, the UK Government desires to use modular housing for more than 100,000 homes \u2013 however, project management consultancy Tower Eight, question whether the modular delivery model could support the supply of homes to the private rented sector (PRS)<\/h2>\n

Tower Eight\u00a0question whether the modular delivery model could support the supply of homes to the private rented sector (PRS)<\/a> to the scale that policymakers hope for \u2013 there have been recent moves by key companies in the sector to choose modular but is this a viable solution for ramping up the supply of PRS homes?<\/p>\n

Why is Modular Construction Particularly Relevant to the PRS?<\/h3>\n

James Morris, Managing Director at Tower Eight<\/a> explained why modular construction is relevant to the Private Rented Sector:<\/p>\n

\u201cFrom our experience of consulting on modular schemes, we would choose to highlight the efficiencies in the modular construction process that produce cost savings and increase speed to market. But from our perspective, there are also areas of the delivery model where there is an inherent risk, most notably at the pre-construction stage.<\/p>\n

\u201cAnd, in our view, this risk has not been adequately\u00a0recognised\u00a0among the industry\u00a0clamour\u00a0surrounding modular and the optimism that it might deliver the scale of housing the country so desperately needs. The PRS has its own very distinct set of challenges and a very different financial model \u2013 so, we would ask the question, can modular construction methods deliver for the PRS?\u201d<\/p>\n

Speed to Market \u2013 How the Model Adds Up<\/h3>\n

Modular construction may in many ways look more expensive; however, it is the speed of delivery which provides the cost benefit.\u00a0\u00a0It is the savings on the\u00a0programme, on the capital costs by scale where money can be made. In the case of Silvertown, East London, 850 modular homes<\/a> are to be built as part of a \u00a33.5bn regeneration<\/a> of the area, with residents moving in as soon as 2020.<\/p>\n

Modular housing should typically produce a 10-15% saving on time; the earlier finish date allowing the scheme to generate revenue at a much earlier point in the lifecycle of a project than conventional construction methods on small to medium sized developments. This is where the key advantage lies.<\/p>\n

The difference between additional revenue generation at the completion of modular construction and the period of uncertainty at its start dictates the profitability of this form of building.\u00a0\u00a0The other key consideration is, of course, the risk around key decision making at this early point in the lifecycle of the project.<\/p>\n

In Conclusion<\/h3>\n

To achieve the required return, the delivery model must be closely\u00a0scrutinised\u00a0and the necessary level of funding in place for modular schemes in the Private Rental Sector (PRS) to prosper.\u00a0\u00a0However, in Tower Eight\u2019s opinion, the pre-construction elements of the model have not been given enough consideration\u00a0in regards to\u00a0the viability of these schemes.<\/p>\n

Lots of developers use a mix of traditional and modern methods, with bathroom pods being the most common example of prefabrication within new developments<\/a>.\u00a0\u00a0However, developers still find traditional construction methods to be more commercially attractive, especially in an uncertain market.<\/p>\n

The success of modular PRS schemes hinges on its ability to deliver a large amount of product to market rapidly and to start generating revenue ahead of the conventional model. In time, with the development of better supply chains, a streamlined planning model and improved industry awareness will see the risks involved diminish.\u00a0\u00a0But, until that time, it is essential that those involved with the schemes go into the project with their eyes open and understand the limits of the development timeline.<\/p>\n

 <\/p>\n

Tower Eight<\/strong><\/p>\n

https:\/\/www.towereight.com\/<\/a><\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

To support their target of creating 1 million new homes by 2020, the UK Government desires to build more than 100,000 modular homes \u2013 however, project management consultancy Tower Eight, question whether the modular delivery model could support the supply of homes to the private rented sector (PRS)<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[942],"tags":[276,571,656,627,696],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-39098","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-mmc-news","7":"tag-government","8":"tag-housing-crisis","9":"tag-housing","10":"tag-modular-construction","11":"tag-offsite-construction"},"acf":[],"yoast_head":"\nCan Modular Housing deliver for the Private Rented Sector?<\/title>\n<meta name=\"description\" content=\"Tower Eight, question whether the modular delivery model could support the supply of homes to the private rented sector (PRS)\" \/>\n<meta name=\"robots\" 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