The market for offsite housing is estimated to have increased by 6%, according to a new report by AMA Research.
The rise, measured by looking at manufacturers’ sales prices, coincides with an increase in the capacity for offsite housing manufacturing, as well as the number of systems with quality assurance.
The figure is lower than the 2019 estimate of 12%, though this has been attributed to the impact of the pandemic throughout 2020, which caused a decline of around 11%.
There is still an ongoing shortage of homes, especially across England, which the report partly attributes to the continued decline of key skilled trades and professionals.
The availability of quality assurance and warranties for offsite housing systems is key to growth, it says, adding that there has been a recent increase in the number of firms and propriety offsite housing systems obtaining BOPAS certification and/or NHBC or other provider warranties.
A key area to look at, the report says, will be where offsite methods are particularly well suited, such as large-scale build-to-rent and affordable housing developments.
Offsite construction will make a significant contribution to the development of these home, it says.
‘Offsite is key’
Alex Blagden, senior market research analyst at AMA Research and editor of the Offsite Housing Report, said: “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 offsite 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, the report says.
This is partly because there are now several large factories, capable of producing more than 2,000 units per year, that have recently started operation.
Image: brizmaker/Shutterstock
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