It’s time to get serious about MMC

Modern methods of construction (MMC) can be a major solution to the lack of new housing supply. My views span decades of experience – as one of the few people to have set up an MMC factory in the UK, having done so while at Unite in the early 2000s, and now at McCarthy Stone, where MMC is a key part of our strategy.   

This spring, we'll start on our 10th development at McCarthy Stone to be built in full using MMC in the past three years. We use a Type 2 MMC solution, with light gauge steel panels constructed in a factory, rather than a Type 1 solution that involves the construction of whole units, or modules, in a factory. 

We have built these schemes significantly faster than traditionally constructed sites, saving around 20% in time. Our developments have always been built well, but our MMC schemes have seen defects drop by half. We have significantly fewer issues with local supply chains or suppliers. Energy efficiency has also improved, delivering lower energy bills for our customers over the long term. The benefits are clear to see. 

Ten schemes in three years is good – they will deliver around 500 specialist retirement properties to improve the lives of older people – but we know we and the sector can do better. 

Despite these advantages, the UK has failed to build MMC homes in meaningful numbers, and the challenges of using a Type 1 modular MMC solution are widely acknowledged. Lord Moylan, chair of the House of Lords' Built Environment Committee, wrote to the government in January urging a fresh approach. Last month housing minister Lee Rowley asked for more time to fully consider the committee's recommendations, noting his department's support for MMC, but also that there are clear questions to be addressed.  

Using my experience, I have several recommendations to make MMC a success in the UK. Our first point is that we have found the Type 2 panel solution to be a better option than the Type 1 volumetric solution. It is more flexible than bringing in whole units for transportation and assembly on site, particularly given the nature of the tight, urban brownfield sites that we develop. A Type 2 panel solution should be encouraged as a practical and viable option. 

"Having an established pipeline of projects is crucial for the future of the MMC sector. For this to happen at scale, the market needs certainty over its pipeline and order book"

Then I also have five broader recommendations for all types of MMC solutions.  

First, having an established pipeline of projects is crucial for the future of the MMC sector. For this to happen at scale, the market needs certainty over its pipeline and order book, particularly because to truly unlock the full potential of MMC we need it delivered at volume. We have this certainty at McCarthy Stone, as we build at scale and typically start on site on around 40 new schemes a year, so our pipeline is there, as it is for other major house builders.  

Second, to encourage take-up, government should set a mandate that by 2029, 10% of all new homes will be built using MMC. This provides the time for the sector to prepare, and certainty for MMC developers. The government still has its 300,000 new homes a year target in place, and Labour has pledged to maintain this target if it wins power. Such a mandate would therefore ensure at least 30,000 MMC homes built in the UK each year. 

It may seem ambitious, but in 2022 the UK's MMC trade body, Make Modular, stated that the industry has the capacity to build 15,000 MMC homes each year. Headlines of MMC developers collapsing and making significant losses have plagued the industry since then, but despite recent adverse media publicity about MMC, I believe it can be successful with the right approach. The market just needs certainty. 

Third, standardisation can create critical mass. MMC works particularly well for student and retirement housing, where designs can be consistent. For these sectors, creating a joint approach with Homes England on MMC alongside the 10% mandate would help address the speed of development and overall supply in the sector. Additionally, government can facilitate private sector investment in the MMC industry by helping to aggregate demand across the public and private sectors, covering all housing types, to create that mass for MMC suppliers. This can be bolstered by investment in the qualification and regulation frameworks, to create simple standards and approval processes.  

"Despite recent adverse media publicity about MMC, I believe it can be successful with the right approach. The market just needs certainty"

Fourth, it's not just government support that is required – the industry also needs to adopt a collaborative approach. Developers and MMC suppliers need to work in partnership. McCarthy Stone is the first UK developer to do this. Since 2021, we've partnered with Remagin, Europe's leading manufacturer of panelised structural steel frames, using its industry-leading, eco-friendly and dynamic light gauge steel framing offsite structural solution. 

Through our partnership, we have been able to evolve our approach together. Windows, doors and external insulation are now also fitted in the factory, further reducing risks and delays. Future developments will also have their first and second fix electrics installed in the factory, along with a streamlined closed panel solution to maximise the benefits of MMC.  

In turn, Remagin has pipeline security and has been able to develop and fine-tune a highly energy-efficient product for us that delivers speed, quality and consistency of build, while also addressing cost and affordability concerns. 

And fifth, developers using MMC need to think differently. MMC does not just provide a new material to work with in a traditional way, but it is a way of constructing that demands a completely different approach to build sequencing and resourcing requirements to get MMC to a position of improved viability.  

It's clear that there is significant potential for the MMC sector to deliver the energy-efficient, affordable homes we need at scale. The market requires clarity, which the government can provide with a clearer strategy, and it also needs certainty, which a 10% mandate can deliver. In doing so, we can improve delivery times, control our costs, further increase our build quality, and deliver the new homes the nation so desperately needs.