The market for offsite housing is estimated to have
increased by 6% at manufacturers sales prices, although this is lower than the
2019 estimate of 12%, according to AMA Research.
This is due to the impact of the pandemic throughout 2020
which caused a decline of around 11% due to the huge disruptive nature from
distribution issues and site closures at the peak of restrictions.
Many areas will be responsible for the demand in offsite
housing construction. There is still an ongoing shortage of homes, especially
across England. We must also look towards the continued decline in numbers of
key skilled trades and professionals.
On the plus side there has been an increase in the
capacity for offsite housing manufacturing as well as the number of systems
with quality assurance.
The availability of quality assurance and warranties for
offsite housing systems is key to growth especially considering the broad lack
of which has up to this point been a barrier. There has been an increase
recently in the number of firms and propriety offsite housing systems which are
obtaining BOPAS certification and/or NHBC or other provider warranties.
A key area to look at will be where offsite methods are
particularly well suited, for example large scale build to rent and affordable
housing developments. Both of which see an urgency to accelerate the build
times and increase the rate of completions. Offsite construction will make a
significant contribution.
Alex Blagden, Senior Market Research Analyst at AMA
Research and editor of the Offsite Housing Report comments: “Offsite
construction is key to accelerating the development of affordable homes, both
social housing and build for sale properties.
“Many factors are driving up both demand and supply,
among the most important being the urgent need to increasing affordable housing
supply; a chronic shortage of skilled ‘wet’ trades; an increase in offsite
housing manufacturing capacity and an increase in the number of firms and
proprietary off-site housing systems obtaining BOPAS (Build off-site Property
Assurance Scheme) certification and or NHBC or other providers warranties.”
Where timber frame has always taken the majority share in
the offsite construction market, there will now be growth in demand and the use
of volumetric and closed panel systems. Particularly as there are now several
large factories that have recently started operation. These factories are
capable of producing 2,000+ units per year.
