In simplistic terms, governments have not incentivised developers to provide enough affordable housing in the UK.
Whilst we are not here to debate the pros and cons of current and previous government policy, this remains the principal limiting factor as to why we are building insufficient affordable homes, and why we have an affordable housing crisis. So how can we rise to this challenge given that policy is unlikely to change soon?
Most of our housing is still delivered traditionally, being constructed on-site by trades that are mostly as familiar now as they would have been in Victorian times. Labour accounts for approximately 60% of the construction cost of any home; therefore, if this can be significantly reduced, or in areas eliminated, over time we can drive down construction costs.
High-quality robotic production lines which can repeat processes in a controlled environment, and work 24/7, hold the key to delivering affordable housing solutions using modern methods of construction. The quality of the finished product would be enhanced, waste would be significantly reduced, and the environmental impacts of on-site delivery markedly improved.
Likewise. the typography and space standards of homes need to be reviewed. If we can build high quality micro-homes that facilitate a foothold in to renting or owning a home, then we again begin to drive down the delivery cost and create the opportunity for a new base entry-level to accessing a home
Within the current development regime, developers need to be incentivised to deliver more affordable homes than the minimum viability test currently determines. Planning incentives, training credits and carbon swap initiatives are all areas that could positively impact the future quantum of affordable housing delivery.
Seedling Homes is our innovative MMC solution for the affordable housing crisis, to find out more please contact: