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Date: 25 May 2021

Author: Lee Merrifield

Developers, would you consider going modular?

A recent article in Forbes stated: The Future Is Modular! While the concept of factory-built homes may seem strange today, in the next few years, planned modular communities may become much more commonplace. We may be asking not “Who built your house?” but instead “What factory did it come from?”

One of our recent clients, Mulberry Homes, came to us with a unique request for funding. Unique in the sense that their project was going to be designed bespoke for their client yet created by Go Modular, a company specialising in factory-prepared property solutions, we knew we wanted to know more.

Intrigued we contacted Go Modular to find out more about their process 

Based in Southampton, Go Modular technology enables the production of houses – off-site – within their state-of-the-art factory. With an annual capacity of more than 300 apartments and houses they are pioneering a lean, fast, and economical off-site construction process.

Their team is formed from a group of modular construction specialists with unique knowledge and experience in off-site construction. With every project, they strive to achieve the construction of new homes up to 35% faster and 20% less expensive yet outperforms all quality standards. And the concept is being accepted and used nationwide. Go Modular estimates that their track record in the UK sees a value in excess of £44m to date.

 

How are they being so successful in this?

At MSP we’re always keen to see our customers embracing new and innovative construction methods that speed the build process and in particular deliver more efficient and sustainable housing.

It’s perfect timing to coincide with the Government’s motions to lead towards a greener, sustainable Britain. Looking deeper into this, Cast Consultancy chief executive and government adviser Mark Farmer and Mike De’Arth, a partner at architect HTA Design, claim embracing modular will slash carbon emissions.

Together they have collaborated and released a new report: Build Homes, Build Jobs, Build Innovation, which claims the industry could deliver 75,000 homes per year through modular methods of construction with government backing.

The paper cites research by HTA Design and Herriot Watt University, found that using modular methods on a new residential building in west London reduced carbon emissions by 40% compared to a traditional build process. This is as an extra bonus to speeding up the delivery of housing, boost productivity and improve quality.

Benefits for developers?

 

Time is saved. On average Go Modular suggests a decrease in build periods of up to 35 – 45%  for relatively simple projects and up to 30 – 35% for more complex schemes. Modular building drastically reduces shrinkage cracks and the drying out period, as significantly less moisture is used in the building materials.

Less time and higher efficiency in the build could save each developer a whopping 20 – 25% on total construction costs. This in turn can create additional client revenues of up to 6% of project costs through early delivery to market.

Because the build has to be precise to work, less time is wasted on costly errors, plus clients can be involved in the design making process and choosing of materials as they would normally, and in normal times can even visit the factory to see their homes come to life, which is a nice add-on to the building process and experience.

Go Modular volumetric units can satisfy almost any architectural and design type residential projects, be it a single-family house or multifamily homes. This is consistent quality, reduced risk, and green by design housing. If the Government continues to offer incentives for developers to ‘go green’ this could well be a serious contender to be considered, moving forwards.

Keen to stay ahead of the trend and adopt modular within all or part of your next build?

 

We’re always keen to see our customers embracing new and innovative construction methods that speed the build process and in particular deliver more efficient and sustainable housing. As experienced residential development funders, we have lent on a number of modular construction schemes including from growing specialists such as Go-Modular through to European market leaders Dan-Wood. We also understand the challenges of funding for offsite construction and can provide a bespoke funding package that will help turn your modular project into reality. 

 

With nearly 20 years of property experience, Lee Merrifield, Underwriting & Credit Manager, is ready to assist you

or call Lee on 01202 743400

Sustainability benefits summed up:

  • Reduced emissions from construction vehicles
  • Reduced waste
  • Reduced energy used on site
  • Built-in high thermal performance
  • Reduced operational energy
  • Excellent airtightness
  • Predictable performance
  • Much reduced ‘performance gap’ issues
  • From Building Regulations to Zero Carbon and Passivhaus standard
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