Two-thirds of house builders investing in modular
More than two-thirds of house builders are investing in modular construction, a new study has found.
Lloyds Bank’s latest annual housebuilding report, released today, reveals that 68% of firms are investing in modular housing, while 56% are putting cash into panelised systems of construction.
Average investment in new building techniques is now 24% of turnover, up from 20% five years ago.
The report also found that more than half of house builders say affordable housing obligations give them cause for concern – with 45% saying they are able to meet thresholds but are worried about the impact on profits and another 7% saying meeting affordable housing policies has an “unduly negative effect on margins”.
Just over a third (34%) said they are able to meet affordable housing obligations with no issues.
Stewart Baseley, executive chair of the Home Builders Federation, said: “While output is up an unprecedented 74% in the past four years, the industry faces some huge challenges as it strives to meet the housing needs of the country.
“House builders are investing significantly to address these challenges and ensure the industry has the capacity and skills to deliver even more high-quality homes.”
According to the study, 31% of house builders feel there is a national skills shortage, with 50% believing leaving the EU is making recruitment harder.
House builders anticipate turnover growing 29% over the next five years and expect to invest 31% of that back into their businesses.
David Cleary, regional director and national head of housebuilding at Lloyds Bank Commercial Banking, said: “The housebuilding industry remains upbeat despite issues that have weighed down the sector for some time, including Brexit uncertainty, which is contributing to a skills shortage and inflating the cost of raw materials.
“It is reassuring to see the sector confronting these challenges head-on by investing and planning for business growth, prioritising staff training and looking at more innovative new building techniques.”
Come and visit us on at ecobuild from the 6th-8th of March on stand F22 to speak to us about your modular building insurance.