The market for offsite housing is estimated to have increased by 6% at manufacturers sales prices, significantly lower than the 2019 estimate of 12%, according to the latest findings by AMA Research.
This is due to the impact of the pandemic throughout 2020 which caused a decline of around 11% due to the huge disruptive nature from distribution issues and site closures at the peak of restrictions, says the organisation.
On the plus side however, the capacity for offsite housing manufacturing has increased, as has the number of systems with quality assurance.
Alex Blagden, senior market research analyst at AMA Research and editor of the Offsite Housing Report said “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 (Build off-site Property Assurance Scheme) certification and or NHBC or other providers warranties.”
Where timber frame has always taken the majority share in the offsite construction market, there will now be growth in demand and the use of volumetric and closed panel systems, says the report, particularly as there are now several large factories that have recently started operation. These factories are capable of producing 2,000+ units per year.
