MMC 5542 48 Feb '16 cc

How off-site construction can beat the
housing crisis and maximise on investment
We have all seen the reports on the on-going housing crisis. The prediction is that at least 200,000 new homes will
need to be built year on year until 2020 to avert this situation.
Despite some upturn in house building
output last year; many analysts believe
the industry remains at least some
100,000 houses a year short to meet demand.
76% of house builders themselves have said
that 180,000 or less is achievable with only
6% saying that 200,000 could be achieved on
a regular annual basis.
A number of house builders now state that skill
shortage has overtaken planning and land
availability as the biggest constraint on their
businesses.
To add to this growing crisis the removal of the
cap on student numbers in UK universities has
seen a 3% rise in university enrolment across
the country. This has meant a shortage of
accommodation with some students having to
share bunk bed rooms in halls - whilst others
have been given reduced rate hotels with two
weeks to find alternative accommodation.
In 2015 around £2.5bn was spent on additional
student accommodation with around a 14%
yield on investment. These figures are expected
to rise.
To answer this gap in the market Premier
Modular developed an innovative modular
building system. This highly efficient light
gauge steel frame based, factory engineered
product is constructed by skilled assembly
teams in the company’s 22 acre site in
Yorkshire.
Director, David Harris, points out that the
modular apartments, rooms and houses are
assembled not by traditionally skilled
tradesmen but rather by manufacturing and
engineering trained factory operatives. This
opens up the possibility of significantly
contributing to the shortage without the need
for finding more scarce traditional resource
that is clearly not available in the UK.
These engineered and factory assembled
products offer significant advantages in many
areas.
Foremost are the time benefits, as
manufacturing is done on a flow line there is no
risk of late delivery from outside forces such as
the weather. David commented ‘Rooms can be
manufactured at a rate of 25 per week and
complete houses at a rate of 20 per week, with
minimal onsite time’
This speed of construction not only reduces
labour rates and prelims but gives a much
faster return on investment whether clients are
selling or gaining a monthly rental income.
Modules are constructed to exacting quality
levels in the controlled factory environment
and with as much as 75% of the buildings
manufactured offsite, the risk of accidents on
site is greatly reduced.
Premier completed a 5 storey 206 bedroom
student accommodation block in September
2015. Located in Newcastle Upon Tyne city
centre it consisted of a mixture of 54 studio
flats, 105 en-suite bedrooms and 2 accessible
en-suite rooms with associated living spaces,
kitchens and study areas. Premier were the
preferred supplier due to speed of programme
and the high quality finish that could be
provided.
Premier Modular has completed their first code
5 sustainable housing development in Hull.
They have now started a number of projects
across the UK. To ensure houses are fully
mortgageable Premier offers an insurance
backed warranty package.
The housing product meets all 5 main elements
to achieve a BRE Green Guide Rating of B or
above and is designed to achieve a Code for
Sustainable Housing Level 3 or above. The
dwellings also meet the requirement of Life
Time Homes.
In a market where an increased rate of build is
required, building standards are increasing, a
reduction of accidents and incidents is
expected despite the increase in activity and we
have a diminishing pool of skilled tradesman.
Offsite construction can be the only answer.
Why not follow us too?
@premier_modular
Linkedin.com/company/premier-modular
www.premiermodular.co.uk
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