68% of housebuilding firms investing in modular housing

Almost seven out of 10 housebuilding firms (68%) are investing in modular housing, according to the latest research.

The third annual Lloyds Bank housebuilding report revealed that 56% of firms were investing in panelised systems.

Investment by firms in new building techniques has increased year-on-year from 20% of current annual turnover to 24% over five years.

The report surveyed housebuilders and their supply chain, analysed the industry as it is today and the opportunities and challenges it faces in the future.

The research revealed that Brexit was having an impact on the skills shortage, with half of respondents (50%) claiming that it was making recruitment more difficult for specific roles.

Furthermore, 26% said that access to EU labour was a key challenge for their business.

 “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,” said David Cleary, regional director and national head of housebuilding at Lloyds Bank commercial banking.

“This has the potential to boost productivity and, more importantly, increase the pipeline of new homes that the nation badly needs.”

Craig Hall, new build manager at Legal & General Mortgage Club, added: “The government recently set a target of 300,000 new homes per year to keep up with demand, and while there is still a way to go, these figures highlight a genuine attempt to grow the sector.

“Even with the potential impact Brexit could have on the availability of skilled labour in the UK, the industry remains optimistic and is clearly prepared to tackle the issue head on.”

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