It's been locked in a vicious circle for years. Social housing providers don't go for homes built off-site because the costs are too high; the costs are too high because the demand isn't there.
So, by allocating a quarter of next year's development budget to schemes built with modern construction methods, deputy prime minister John Prescott should be putting in place the conditions to break this circle. But the reality is that an order book of more than 5000 new homes isn't tipping the balance as much as one would have thought. Our survey of the top developing associations (page 26) certainly shows enthusiasm, but perhaps that's more to do with following the money than a commitment to the new technology.

Anxieties abound. With section 106 agreements still a major delivery mechanism, how does the government hope to persuade housebuilders to adopt OSM technology? What about capacity?

Can manufacturers meet the demand? Will costs fall? Can quality improve? It's hardly confidence-boosting when Hyde Housing Group, one of the founding members of the Amphion consortium, decides to take its custom abroad, and the news that Torwood, the manufacturer affiliated to Amphion, has gone into receivership will hardly inspire confidence in buyers or suppliers (page 11).

Perhaps enthusiasm for off-site manufacture is more to do with money than commitment

On the plus side, the Housing Corporation is moving in the right direction on a number of fronts. Moves towards longer-term funding will make it easier for associations to plan for larger off-site schemes (page 9); so will a shake-up of the way funding is worked out. Saying yes to a scheme without considering maintenance costs is out of step with enlightened public procurement; calculating lifetime costs should also help make off-site schemes more financially viable.

It would be easy to dismiss housing associations' concerns about this new technology as nothing more than those of a conservative sector reluctant to move into the 21st century. But these worries are real and need to be addressed if the vicious circle is to be broken.

Source

Housing Today