The conference, billed as the first conference of its kind to help lenders understand the reality of mortgage lending in the new housebuilding landscape was organised by BuildStore Financial Services, the self build, renovation and conversion mortgage specialists and was held at the National Self Build & Renovation Centre in Swindon on March 15th.
A packed audience of heads of lending, valuers, risk managers, surveyors and mortgage policy managers and those involved in setting mortgage strategy attended the free conference to debate the issues surrounding lending policy, and how it matches up with the practical realities of housebuilding regulation.
Modern Methods of Construction – More industry decision makers are recognising the significant benefits of modern methods of construction (MMC): better products and processes, and improved business efficiency, quality, customer satisfaction, and environmental performance.
Eco building – The introduction of the Code for Sustainable Homes in 2007 marked a step-change in sustainable home building. Eco building techniques, natural building fabrics and renewable energy technology will now be required to meet the Code standards.
Self Build – A lack of suitable and affordable homes is driving the interest in the self build and self procurement sector, and with the Government’s Localism Bill, building your own home is set to become more accessible and more appealing.
Paul Broadhead from the Building Societies Association (BSA) the trade association representing mutual lenders and deposit takers in the UK including all 48 UK building societies started the conference by stating that he was keen to unblock the barriers to finance.
Tim Doherty, from the National Self Build & Renovation Centre took delegates through an excellent presentation on Modern Methods of Construction (MMC) & Eco Building.
Modern Methods of Construction (MMC) & Eco Building
MMC are increasingly favoured as a means of improving quality, reducing time spent on site, and overcoming skills shortages. The eco agenda has also made an impact on construction, with sustainable materials and techniques becoming more popular. The presentations demonstrated the most common MMC and eco building techniques and the current mortgage lending policies which led in to Simon Middleton from Build Zone presenting a structural warranty providers view on these new methods of house building.
MMC and Ecobuild – A Structural Warranty Providers Perspective
The Build-Zone 10 Year Structural Warranty is DCLG designated warranty scheme provider with provision available for housing, social housing, commercial development, completed and self-build properties.
Build-Zone offer a flexible and competitive approach to warranty provision in all sectors of the construction and building industry, including those working on MMC and Ecobuild projects.
Simon explained how MMC and Ecobuilding projects are able to get Structural Warranty Provision, an insurance policy which covers:
- defects in design, workmanship and materials causing major damage
- defective weatherproofing
- health & safety of occupants
- contaminated land
- loss of deposit
MMC and Ecobuild projects can easily obtain cover, largely due to their dedicated technical service company ‘SurveyorLink’ the Build-Zone partner approved inspector scheme – which audits the project at various stages. Simon explained the technical audit process used and highlighted the risk transfer and claim trends for MMC and ecobuild projects, he surprised the audience by telling them that they had seen no MMC or Eco Build related claim notifications.
“Traditional building methods continue to produce workmanship claims on a low frequency basis.
MMC and Eco Building are definitely here for the long term and should be subject to exactly the same risk management and long term understanding as we place on traditional methods of construction”.
To speak to one of Build-Zone’s Structural Warranty experts, call 0845 230 9873 or visit www.build-zone.com