Last week, the House of Lords Built Environment Committee continued its inquiry into modern methods of construction. 

Lord Carrington of Fulham asked Richard if the fact that so many companies have gone bust is causing a problem for the NHBC.

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He said: “Is the insolvency rate in this industry, which is massive, causing people to say, ‘if we have a calamity and a call on our insurance or our warranty, this is a real problem for us?’”

Richard replied: “I can only comment on what is happening at the moment in relation to some of the volumetric manufacturers that are no longer in business.

“We have our buildmark policy and our insolvency cover, and we have activated that insolvency cover in some circumstances and continued to support the end user, if you like, whether that be a social housing provider or consumer, to get the property that it has paid for or purchased.

“That is what I was saying earlier about how we have supported the industry.

“We have incurred some losses, because we are going through that process, but that is what the policy is there to do.”