7 July 2023
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MMC Hammer Blow: Recent failures of modular homes manufacturers feel like a blow to the UK Living sector but were expectations just a bit too high for what is essentially a start-up sector?

To The Point

A number of manufacturers of modular housing are in distress. We touch on: how the Living Sector has changed its attitudes to Modern Methods of Construction (MMC), why things have gone wrong for a number of high profile businesses and what the industry can do next to reassure and grow what is hailed as being part of the answer to the UK's housing supply issues.

The news that Ilke Homes went into administration last week just a short time after Legal & General halted production at their Leeds factory was not what the industry wanted to hear and dashed hopes and  expectations that Modern Methods of Construction (MMC) might finally be the catalyst for faster and cheaper housing delivery.

MMC has taken time to get off the ground in the UK (excuse the pun) but things had seemed to be looking up. The Government had highlighted that the use of MMC would make the UK housing "greener, better, faster" and had called for 25% of homes being funded by the Affordable Homes Programme to be MMC in the Capital Funding Guide. Ilke itself was partially backed by Homes England. The inherent ESG advantages in MMC made it all the more appealing. Aviva and Persimmon had only recently announced their respective investments into TopHat in April this year. 

So with an industry becoming more willing to make MMC work and some real progress made in terms of getting funders comfortable what's behind the recent spate of failures:
What we can learn

To the Point 

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