0151 231 6100

Book a Valuation

City Residential can ‘Help You to Buy’ your Own Brand New Modular Home

Wirral Waters modular home

In November 2019 the Government announced plans for a ‘Construction Corridor’ in the north of England to power the UK’s modular revolution.

At the same time, Homes England, whose stated ambition is to challenge traditional norms and build better homes faster, started championing modular housing as a solution to speeding up the delivery of affordable housing across the UK.

And last year, the Government’s national housing agency announced that housing associations looking to sign deals under the new £11.5bn Affordable Housing Programme will have to commit to using modern methods of construction to deliver at least a quarter of their pipelines.

What is Modular Construction?

Modular buildings are constructed off-site in controlled conditions, using the similar materials and codes as traditional housing, and then transported to the site to be finished as a completed building. The nature of their construction means that they are extremely time efficient, with up to a 70% faster delivery rate than traditional construction methods.

Additionally, because the units are already pre-fabricated the construction time is reduced, which also saves labour costs. Further, weather delays are no longer a hindrance either, making it easier to hit targets. Modular constructions are monitored regularly, ensuring a better quality of final products and they can easily be replaced or recycled during renovation activities making them more user-friendly.

Fierce Urgency of Now

The UK’s housing crisis may have given the move to modular or modern methods of construction (MMC) a real shot in the arm, however the events of the last two years both here and abroad have generated further momentum for several reasons.

Firstly, the UK construction sector’s skills shortage is well documented and widely discussed. A reduced workforce as a result of Brexit and the knock-on effects of the pandemic, means that modular construction is now increasingly seen as an answer to this continuing conundrum.

Meanwhile, the fierce urgency of now created worldwide by the climate change emergency and the impact of Covid-19 has prompted a report on housing from the World Economic Reform, in which is written: “Entrepreneurs around the world are rethinking housing construction from the ground up to produce more efficient solutions. Modular homes offer a promising solution, with new companies taking up this challenge everywhere from Chile to Estonia.”

And to add more grist to the mill, or sand to the cement mixer, the global modular construction market size is expected to top £100bn by 2028. MMC may be newish in the UK, but it’s almost the norm in some countries, like Japan or Sweden where they have had to adapt to their particular circumstances – like we all now need to, including in this country, because buildings currently account for 40 per cent of carbon emissions in the UK and 60 per cent of all waste.

And if still in doubt, the Committee on Climate Change has given the construction industry a mere decade to make all new buildings, not just homes, zero carbon.

House by Urban Splash

There are many UK companies pioneering modular housing in the UK and indeed here in Liverpool city region and the wider North West. One of them, Urban Splash has always been at the cutting edge of housing design and innovation and are well on track with a modular housing project in Birkenhead on the Wirral in conjunction with Peel L & P.

They have come up with the concept of Row House – a beautiful Victorian terraced house brought right up to date. With a choice of two, two and a half or three storeys, it creates a unique undulating streetscape.

Whichever Row House one might choose, inside it is steeped in natural light, with big windows and lofty ceilings making it spacious and airy. They are all built off site in Urban Splash’s House modular factory and as the company itself says, “the house’s high energy efficiency standards will mean owners know that they are doing their bit to look after the planet, as well as their pocket.”

The Row Houses at Wirral Waters are coming soon but are for sale now and five are available through the Government’s Help to Buy scheme. It’s a perfect marriage.

Help to Buy

Help to Buy does exactly what it says on the tin and the scheme has been helping people to buy a property since 2013. In that time some 340,000 properties have been purchased through these equity loans.

Buyers putting down a five per cent cash deposit can borrow up to 20 per cent of the cost of a new-build home (40 per cent in Greater London), and the loan is repaid as a percentage of the proceeds when it’s sold, or sooner if affordable.

It’s interest-free for five years, with a rate of 1.75 per cent starting in year six increasing annually by adding the Consumer Price Index plus two per cent. Different maximum property price thresholds apply across England’s nine regions, and in the North West the threshold is £224,400.

Yet, it’s not going to last forever. Indeed, last year the scheme went through it’s own makeover when from April 1st, criteria became stricter to ensure it benefited genuine first time buyers.

Now, Help to Buy is set to end forever on March 31, 2023, which means prospective buyers will have to complete the property purchase by this date in order to take advantage of the equity loan. The legal hoops usually take two to three months to jump through, but it can take longer, so first-time buyers need to start packing now.

Imagine making your very first home a modular house?

Call City Residential now on 0151 231 6100 to make that happen.

There are no comments.

Leave a Reply

Your email address will not be published.