Building sights: how offsite construction could help solve the housing shortage

“Offsite construction” by psd is licensed with CC BY 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by/2.0/

Long waiting lists, high rents, thousands sleeping rough, millions living in insecure or unsuitable homes and a generation of young people priced out of the market: these are the hallmarks of the UK’s broken housing system.

In England, the government is committed to building 300,000 new homes a year by the mid-2020s. But in 2019, the number of new homes amounted to 170,000 – fewer than half of which were affordable homes. It’s a situation that is almost certain to get worse. Housing analysts have suggested that the restrictions caused by the coronavirus pandemic in 2020 will mean a 30% reduction in homes delivered.

Local authorities are rising to the challenge of the housing crisis. Between 1999 and 2002, councils delivered just 60 new homes as a consequence of central government housing policy. But in recent years councils have been returning to housebuilding in large numbers. A 2019 RTPI report found that:

“…more than two thirds of local authorities are now involved in directly delivering housing and local authorities are delivering homes in numbers not seen for 20 years.”

In the same year, The Guardian newspaper highlighted some examples of council housing projects:

“Bournemouth is building housing above many of its surface car parks, and has won planning awards for the results. Wigan is transforming tricky former mining sites with an exemplary programme of housing for older people. Exeter has one of Europe’s largest Passivhaus schemes underway, while Liverpool is developing rent-to-buy homes.”

Going modular

But if councils are to succeed in their efforts to deliver more affordable, low carbon housing, they will need to change the way homes are built. Increasingly, prefabricated modular construction is being seen as a way to meet some of the demand for new housing. Built offsite in factories, with fittings included, prefabricated housing offers comfortable, well-insulated homes that can be constructed more quickly than traditional building. Offsite construction can deliver a modern apartment block in half the time that it would take to build using traditional methods, which means that units for sale or rent can start making money more quickly.

An article in the 12 November 2020 issue of MJ magazine reported further benefits, noting that:

“…these homes are delivered with up to 40% less carbon, fewer defects, and less disruption to neighbourhoods where sites are located. Once completed the fact they are made in a factory is not obvious to the passer by or occupant, it is just great housing, beautifully built, with low running costs.”

A shortage of skilled labour presents another reason why the old ways of building homes need to change, as a 2016 review of the construction market highlighted:

“We will not have the labour force to deliver what the country needs by working in those ways, and those ways will not create enough added value for clients or suppliers to allow construction firms to prosper, and make those investments in our people and performance.”

The report demonstrated that prefabricated housing can make a significant difference to satisfying demand:

“Tokyo alone is able to build nearly the same number of homes per year that the UK delivers nationally. This is purely due to the reliance on a different delivery model for single family homes which benefits from the mass market cultural acceptance of pre-manufactured modular housing.”

Housing the homeless

Further evidence that modern methods of construction can work well has come from a project in Cambridge, where six modular homes were installed on a temporary site to house local homeless people. A report by the Cambridge Centre for Housing & Planning Research noted that residents were impressed with the design, space and quality of the modular units, and were keen to be involved in efforts to build a thriving community.

The Cambridge project is especially important in the light of the UK’s large number of rough sleepers and ‘hidden homeless’. In March 2020, more than 14,000 homeless people were housed in England as part of the ‘Everyone In’ initiative to take rough sleepers off the streets during the first wave of the pandemic. The programme was hailed as one of the leading successes of the government’s coronavirus response, but it ended in May and has not resumed during the current lockdown.

The future is modular?

So, could modular construction offer a solution to the UK’s housing shortage? Recent research published in the Journal of Engineering, Design and Technology set out to compare the traditional approach with modular construction, and to assess whether a shift in construction systems offers the potential to alleviate the UK’s domestic housing crisis. The study stressed that more research was needed to provide greater certainty about how modular methods could be more effectively grafted onto the current UK construction practices. However, the authors concluded that:

 “…modular construction promises strategic solutions to the lack of affordable housing currently experienced in the UK.”

In the meantime, recent developments suggest that the prefabricated housing sector seems to be going from strength to strength:

  • A 20,000 sq ft unit will be the manufacturing site for a new modular housing company in Durham, with plans to produce 1,000 modular homes a year.
  • A modular housing developer owned by Ikea has signed a 750-home deal with a housing association in the south of England.
  • Planning consent has been granted for 185 homes to be located in Bristol after they are shipped in from a factory in Yorkshire. Half of the homes will become part of the city council’s affordable housing stock.

The numbers of prefabricated homes are still too low. But if this trend continues, offsite construction might start to have a bigger impact on the UK’s housing shortage. The days of bricks and mortar could be numbered.


Further reading
More from The Knowledge Exchange blog on modern methods of housing:

Prefabs sprout: could factory-built homes tackle the housing crisis?

Long regarded as a relic of the past, prefabricated housing is now emerging as a potential solution for the UK’s chronic shortage of affordable homes.

Britain’s golden age of prefabricated housing happened after World War II, when the government authorised thousands of factory-built homes to replace housing destroyed by bombing raids. Intended to last for no more than ten years, many prefab homes were still occupied thirty years after construction.

For a period during the 1960s, prefab housing enjoyed a resurgence. One scheme was showcased at Montreal’s Expo 67 as a solution for high-quality housing in dense urban environments. But in Britain prefabs became associated with shoddy, damp and dysfunctional housing. The largest remaining post-war prefab estate, located in London is now facing demolition.

The prefab renaissance

In recent years, prefabricated housing has been rebranded and is now showing signs of making a comeback:

  • In Yorkshire, the Legal & General insurance firm has opened the world’s largest modular homes construction factory.
  • In Manchester, regeneration company Urban Splash is developing a 43-home scheme, with each house designed by the customer, then built offsite and shipped to the New Islington estate.
  • In Lewisham, south London, Rational House is working with AECOM to build “off-the-shelf” homes for young professionals struggling to get on the property ladder.

Renewed interest in prefab housing has been driven by the severe shortage of housing in the UK, along with the rising cost of traditional construction methods. At the same time, new materials and construction techniques have made prefab homes a more economic and attractive option. This week, leading engineering firm Laing O’Rourke has suggested that the acute lack of space in Britain’s cities could lead to the next generation of tower blocks being built almost entirely off-site.

In its 2017 housing white paper, the government proposed measures to stimulate the growth of the offsite construction sector and promote more factory built homes through the Accelerated Construction programme and the Home Builders’ Fund. The paper highlighted Creekside Wharf in Greenwich as a good example of prefab housing’s potential.

The benefits and challenges of prefab housing

The champions of prefab housing argue that it provides comfortable, well-insulated homes that can be constructed much more quickly than traditional building. Offsite construction can deliver a modern prefab apartment block in half the time that it would take to build using traditional methods, which means that units for sale or rent can start making money more quickly. Proponents also argue that offsite construction generates less noise, dust and disruption for neighbours. And although offsite costs remain higher, the margin is narrowing as prefab manufacturing achieves efficiencies of scale.

But although today’s prefab homes are a world away from their post-war forerunners, critics have argued that contemporary prefab housing is no match for a traditionally-constructed home. There have also been concerns that prefab homes could be deployed as a quick fix. The Guardian’s architecture and design critic, Oliver Wainwright commented:

“If taken up as the silver bullet to endless waiting lists, there’s a very real risk it could sow the seeds for a future of cheaply built, meanly scaled, less stable housing that can be conveniently swept away at a moment’s notice.”

Some have expressed concern that factory-built homes could end up deskilling traditional building, but others believe that prefabricated housing could plug a skills gap in the construction sector after the UK leaves the European Union.  Meanwhile, lenders to developers are still cautious about financing prefab projects until their long-term durability has been tested.

Prefab present…

Despite these reservations, prefab housing is shedding its outdated image and increasingly entering the mainstream housing sector. In some areas, factory-built housing is already being deployed to help people with urgent housing needs.

The architecture firm of Rogers Stirk Harbour and Partners is internationally famous for its cutting edge projects, from Heathrow Airport’s Terminal Five to the National Assembly for Wales. But in 2015, the firm joined forces with the London Borough of Merton, the YMCA and Aecom to create Y:Cube. The first 24-home Y:Cube development is located at Mitcham in south-west London, and took just five months to build. Tenants come from YMCA hostels and Merton’s housing waiting list, finding the flats as welcome alternatives to hostels and B&B accommodation. A similar project is taking place to provide Y:Cube accommodation for local people with acute housing needs in the London borough of Lewisham.

Beyond the capital, further prefab housing developments are in the making:

  • Manchester City Council has been leading an offsite construction consortium of 17 housing associations with the aim of building hundreds of new homes in the north of England.
  • In December 2016, Your Housing Group announced a partnership with a Chinese construction firm to deliver 25,000 prefabricated homes over the next five years.
  • Swan Housing Association is building an 18,000 sq ft factory to deliver new homes for the regeneration of Basildon’s Craylands estate.

…and prefab future?

While prefab housing is gathering pace, one entrepreneur is taking the concept to the next level. Alastair Parvin, a graduate of Sheffield University’s school of architecture, believes that harnessing the possibilities offered by technology can make building a house more straightforward.

The idea behind Parvin’s “WikiHouse” is to enable users to draw up plans for their new home online. But instead of the house then being constructed at one offsite location, the components will be manufactured by a network of small business and community spaces – known as maker-spaces.

We’ve come a long way from the prefab housing of the post-war years, and perhaps there’s some way to go before the vision of the WikiHouse is realised. In the meantime, prefabricated housing could offer a much-needed boost to tackling the nation’s existing housing shortfall.


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