The hub will support research and development in digital and offsite manufacturing and advance new knowledge and approaches in construction.

Investment will come via the £170m transforming construction challenge, part of the government’s industrial strategy challenge fund, which is being delivered by UK Research and Innovation.

The hub will see a new skill set incorporated as contemporary construction techniques are introduced, such as more standardised modular components.

It is anticipated that the initiative could open up job opportunities for the unemployed, homeless and disabled.

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Sam Stacey, challenge director at UK Research and Innovation, said: “We need to transform construction so that we can create affordable places to live and work that are safer, healthier and use less energy.

“By taking a lead in the UK, we can increase our ability to export.

“Global demand for efficient buildings is rising rapidly, driven by the pressures of urbanisation, affordability and the need to cut emissions.”

The Core Innovation Hub is a partnership between the Manufacturing Technology Centre, Building Research Establishment and the University of Cambridge’s Centre for Digital Built Britain.

The hub was announced by Richard Harrington, business and industry minister, who said: “From the introduction of virtual reality to off-site manufacturing, our modern industrial strategy is helping the UK construction sector to develop new techniques and skills – modernising the sector and delivering the homes and buildings our nation needs.”