Housing Development spending (Traditional v MMC)
Chris Simons made this Rhyddid Gwybodaeth request to Chichester District Council
This request has been closed to new correspondence. Contact us if you think it should be reopened.
Dear Chichester District Council,
I am writing to you under the Freedom of Information Act 2000. I am in the process of researching for my dissertation and I am keen to find out the level of uptake of modern methods of construction by councils around the UK and I was hoping that you could provide me with the following information please:
1. What has been the total spend on housing development budget for each full financial year over the last 5 years?
2. In your best estimate, what percentage of this budget over this time has been spent on traditional methods of construction?
3.In your best estimate, what percentage of this budget over this time has been spent on modern methods of construction? In particular off site construction.
4. If there is a low level of uptake with MMC then could you give me the main reason or reasons as to why this might be please?
If it is not possible to provide the information requested due to the information exceeding the cost of compliance limits identified in Section 12, lease provide advice and assistance, under your Section 16 obligations, as to how I can refine my request to be included in the scope of the Act.
Thank you for your email received 17/12/2018, requesting information
regarding the above .
Your request has been dealt with under the terms of the Freedom of
Information Act 2000 and has been answered within twenty working days.
Please see below our response:
1. What has been the total spend on housing development budget for each
full financial year over the last 5 years? £0 - CDC is a non-developing
2. In your best estimate, what percentage of this budget over this time
has been spent on traditional methods of construction? N/A
3.In your best estimate, what percentage of this budget over this time has
been spent on modern methods of construction? In particular off site
4. If there is a low level of uptake with MMC then could you give me the
main reason or reasons as to why this might be please?
Although the concept of modular housing is not new, a large scale scheme
is yet to be completed. From discussion we have had, the main issue with
scaling up MMC is the ability to attract mortgages. There are lenders
willing to lend on properties which are of ‘non-standard’ construction.
However, it will depend on the details such as the life span of the
properties delivered, long-term maintenance arrangements, and what the
future costs of maintenance and repair might be. It is crucial that a
dwelling holds its value in the medium to long term to offer security for
a mortgage. In practice, a property must be capable of being re-sold, and
maintaining or increasing its value over the term of the mortgage. There
are nonetheless potential upside risks associated with modular homes, such
as the prospect of greater quality control, costs and reduced construction
A key point is how will they be valued as some lenders will be more
focused on an independent valuation than specific mortgage criteria.
Therefore the lenders will need to be guided by valuers on appropriate
valuation mechanisms, and to be assured about the structural integrity,
longevity and adequacy for mortgage purposes of any properties of
non-traditional construction. Also, consideration needs to be given to
whether they will be able to get building insurance.
It is likely the interest rates and deposits required will be higher than
the usual products until the sectors confidence in the product and
valuation process increases.
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