Demand for offsite housing construction increased by 6% in 2021, research finds

Picture credit: AdobeStock / pict rider.
Picture credit: AdobeStock / pict rider.

AMA Research has found that the market for offsite housing is estimated to have increased by 6% at manufacturers sales prices, although this is lower than the 2019 estimate of 12%, due to the impact of the pandemic throughout 2020, which caused a decline of around 11%.

There has also been an increase in the capacity for offsite housing manufacturing as well as the number of systems with quality assurance, which is key to growth especially considering the broad lack of which has up to this point been a barrier.

There has been an increase recently in the number of firms and propriety offsite housing systems which are obtaining Build off-site Property Assurance Scheme (BOPAS) certification and/or NHBC or other provider warranties.

A key area to look at will be where offsite methods are particularly well suited, for example large scale build to rent and affordable housing developments. Both of which see an urgency to accelerate the build times and increase the rate of completions. Offsite construction will make a significant contribution.

Alex Blagden, senior market research analyst at AMA Research, commented: “Offsite construction is key to accelerating the development of affordable homes, both social housing and build for sale properties.

“Many factors are driving up both demand and supply, among the most important being the urgent need to increasing affordable housing supply; a chronic shortage of skilled ‘wet’ trades; an increase in offsite housing manufacturing capacity and an increase in the number of firms and proprietary off-site housing systems obtaining BOPAS certification and or NHBC or other providers warranties.”

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