Lords Discuss the Role of SMEs in Solving the Housing Crisis

IN A RECENT debate at the House of Lords, focus turned to modern methods of construction (MMC) with speakers discussing the skills crisis, disability access, the diversification of the market, planning reform and the possibility of more support for small and medium-sized (SME) builders.

SME Builders

The Earl of Lytton, a chartered surveyor, looked at why SME builders are being undervalued and highlighted the problems with the wider development process.

Baroness Walmsley, who used an SME builder for her Passivhaus project, explained the practical differences between her SME builder and volume builders she had spoken to in regard to testing and delivering thermal efficiency.

Lord Borwick summed up the problems for SME builders and criticised an overly centralised planning system. He said, “only the market possesses the information needed to address the housing crisis” and explained that the only solution involves relaxing planning rules and granting permission more quickly. Lord Borwick also pointed out that due to increasing planning costs and delays, 80% of SME builders have left the industry since 1999.

Accessible and Adaptable Homes

Lord Borwick, Baroness Thomas and Lord Shinkwin also gave insights on how the construction sector could deliver more new, accessible and adaptable homes.

Baroness Thomas highlighted the experiences of disabled householders and how MMC must support them by, for instance, including walls that are strong enough for grab rails.

The National Federation of Builders (NFB) stated that the planned review into access and use of buildings by the Lords will require industry collaboration, particularly to encourage more independent living and downsizing.

MMC

Baroness Watkins, Lord Stunell and Baroness Warwick focused on MMC, citing the need to adopt common standards across the construction industry so that homebuyers could use different manufacturers on one project.

Baroness Warwick, chair of the National Housing Federation (NHF), said that housing delivery was 50% faster and resulted in 90% less waste on housing association MMC projects she had seen.

All speakers discussing MMC were supportive of its potential benefits, but a consensus remained about needing to get it right for consumers and the wider industry.

The NFB believes traditional housebuilders will struggle to meet increasing demand, which stands at more than 300,000 homes every year, and that MMC will consequently play a greater role in increasing the housing supply.

According to the NFB, the planning process should not favour offsite over traditional housebuilding. The federation believes the Government should look to incentivise the broader use of MMC to avoid up stifling the wider industry from embracing modern construction methods.

Skills
When summing up the debate, Lord Bourne referred to the Mark Farmer report, “Modernise or Die”, as containing many solutions to the skills crisis.

According to the NFB, Farmer’s recommendation of a ‘tripartite covenant’ between construction industry, clients and government is needed more than ever due to SMEs training 4 in 5 construction apprentices, employing within 15 miles of their head offices and sustaining the wider construction supply chain.