Yorkon and Stewart Milne back Lord Falconer's call for crash programme to house key public service workers.
Builders of Prefabricated homes have called for more money to meet planning minister Lord Falconer's pledge to house thousands of key workers such as nurses and teachers.

They said the Housing Corporation had to increase the amount it gave to social landlords so the industry could press ahead with prefabricated schemes.

Falconer announced plans at the weekend to build thousands of prefabricated houses, similar to the trailblazing Murray Grove scheme in east London built by the Peabody Trust housing association, to ease the housing crisis created by house-price inflation.

John Cadwallader, chief executive at East Anglian prefab maker Partnerships First, called for extra funding to roll out similar schemes. He said: "Our view is that the government's Kickstart prefabrication social housing programme should be further expanded."

Manufacturer Yorkon backed the call. Director and general manager Keith Blanshard said: "The Housing Corporation needs to increase grants to housing associations for off-site production. It's OK for us to go on about prefabrication, but it needs to come from the top as well."

Yorkon and rival manufacturer Stewart Milne said they were gearing up for extra output. Yorkon is building a factory capable of producing 6000 units a year. Milne said it could eventually be capable of producing up to 20,000 units.

Blanshard added: "Falconer's comments contribute to the momentum for off-site construction. If we can marry quality design with production we can produce really fantastic buildings in half the time."

David Crewe, chief executive of the Housing Forum, called for a revolution in social housing procurement to build the extra homes needed for key workers. He said: "Housing associations are a very, very fragmented method of producing social housing. This housing crisis will not be solved without government action."

Crewe said one of the big issues surrounding Falconer's proposals would be finding suitable land for such prefabricated schemes.