The inquiry was launched to understand the barriers to MMC, following the collapse of several manufacturers over the past two years, including modular housebuilder Ilke Homes, which went into liquidation in October 2023.

A letter to the government from the BEC, published today (26th January), said that its inquiry found the government’s approach to MMC in “disarray”, with millions of pounds of public money being invested without a coherent strategy.

In addition, it noted that the government’s MMC Taskforce — which was allocated £10m and was expected to take forward work on data and standards — has never met.

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“The government should explain the justification for abandoning this approach and set out how the promised funding has been used or reallocated,” the letter read.

The letter also highlighted that risk aversion from warranty providers, insurance providers, and insufficient clarity of building regulations also added barriers to MMC.

The BEC concluded that the government needed a better understanding of how the MMC sector works and the help it requires, and to set achievable goals and develop a clear strategy.

Lord Moylan, chair at the BEC, said: “The government needs to change tack.

“Simply throwing money at the sector hasn’t worked.

“If it wants to encourage MMC, it must acquire a much deeper understanding of how it works, develop a clear strategy, and demonstrate leadership."