In February, we drive change with Housing Festival at the New Homes in New Ways Summit.
Over the last few months, we have interviewed several key leaders in the MMC sector, and were delighted to put these questions to Dr. Rehan Khodabuccus, Operations & Technical Director at Zed Pods Limited.
ZED PODS Ltd designs & builds sustainable modular housing, unlocking underutilised sites like car parks and flood zones, offering in-house design, planning, and contractor services to address housing shortages while prioritising sustainability.
As someone who holds a Doctorate in Engineering in Sustainable Energy Systems & an MSc in Environmental Strategy (Distinction), and with 20+ years of construction, combining technical, scientific, and economic expertise, he is best placed to continue the discussion of modern methods of construction.
What do you see as the key challenges and barriers to the widespread adoption of Modern Methods of Construction (MMC) in UK housing delivery?
Modular homes hold significant potential to address key challenges in the UK housing sector, such as housing shortages, cost efficiency, and sustainability. However, the reality has been far more challenging in recent years, as the modular new-built sector faces several structural challenges. These challenges include economic, regulatory, and market-related barriers that inhibit MMC's scalability.
Modular homes have always carried several misconceptions about their lack of quality, customisation or aesthetic appeal. Additionally, the sector has witnessed several high-profile failures that have undermined confidence among key stakeholders. Economic uncertainty has further weakened the market. Events such as Brexit and the COVID-19 pandemic disrupted supply chains, increased material costs, and delayed projects, impacting the ability to maximise MMC’s efficiency. As MMC requires significant upfront investment in factories, equipment, and specialised labour, the need for a consistent project pipeline to justify high initial capital costs is essential.
Social landlords also face budget constraints while planning delays hamper modular construction’s speed advantage. Regulatory challenges have added complexity to MMC adoption, such as changes to the building control process and the impact of the Building Safety Act. Whilst this is being dealt with industry wide, MMC as the new method of delivery has been placed under increased scrutiny, especially post-Grenfell.
We at Zed Pods have worked diligently to mitigate these risks through our unique approach and integrated design and delivery approach. We have utilised our unique skill-sets to overcome design & operational barriers, unlocking constrained land parcels and difficult to build on sites like Flood Zones. Our focus on building zero-carbon (by operation) social-rented homes through close collaboration and partnership with clients, local community and key project stakeholders is helping us push through market and perception barriers and deliver high quality MMC schemes.
Do you feel the new Government should give the industry a push by mandating MMC? For example, a new coherent strategy with an increased requirement to use MMC through the Affordable Homes Programme (AHP) to incentivise housing associations, /local authorities to use MMC in their projects.
Yes - the new government should actively promote MMC by embedding their use within programs like the Affordable Homes Programme (AHP). A coherent strategy to increase MMC adoption can significantly address housing shortages, reduce construction costs, and achieve sustainability goals. However, as highlighted in the House of Lords debates, the success of MMC hinges on overcoming several critical challenges, such as high initial capital costs, regulatory hurdles, and market scepticism.
Mandating MMC through the AHP (2021–2026) has enabled growth, and this approach should be continued in the next round of AHP funding with more rigorous requirements and checks. This will ensure a steady demand pipeline, enabling modular companies to achieve economies of scale and reduce unit costs. This approach addresses the "vicious cycle" identified in the debates, where high prices deter investment and limit orders.
Any further delay in implementing government policies, including the Future Homes Standard, should be avoided. Furthermore, aligning MMC with government-backed incentives, such as underwriting risks for housing associations, would provide much-needed financial security and encourage wider adoption. Presently, there is limited financial incentive to design and build EPC A100+ rated modular homes. Sustainability and MMC go hand in hand—with a coherent strategy and funding, the UK Government can play a significant role in delivering high-quality energy-efficient modular homes and achieving their 1.5 million homes target.
In your opinion are there any game-changing innovations taking place in the MMC market?
Yes - there are several game-changing innovations in the MMC market, particularly in the integration of Building Information Modeling (BIM) and adopting a digital approach. Notably, many SMEs in the UK construction sector have been slow to adopt BIM, primarily due to limited financial capacity and a lack of familiarity with BIM software systems.
We have proactively embraced digital construction methodologies, which have drastically enhanced project efficiency, collaboration, and quality. For instance, in the Fortis House project in Ashford (showcased at the New Homes New Way Exhibition) we have implemented BIM Level 2 in line with ISO 19650 standards. This approach ensured consistency and accuracy throughout the design process, facilitating energy efficiency analyses and the integration of renewable energy sources. To achieve this, we have invested nearly 2,000 hours in training 36 collaborators, including subcontractors and consultants, to enhance their BIM capabilities. This comprehensive training fostered a collaborative working environment, streamlined design processes, and improved project outcomes.
By embracing digital construction methodologies and investing in upskilling workforce and supply chain, BIM not only can improve project delivery but also contribute to the broader goals of sustainability and efficiency in construction.
What do you believe we need to change around the terminology and language of MMC, if at all? Do you think the current perception is a barrier preventing adoption in the UK due to past failures with modular housing factories and inaccurate misconceptions?
Perception can indeed act as a barrier to the widespread acceptance of MMC in the UK. Terms like "modular" or "prefabricated" often carry historical baggage, leading to skepticism about quality and durability. Modern, high quality off-site homes bear very little resemblance to the past so terminology needs to reflect this to prevent the tarring of the modern crop with historic delivery.
To counter these misconceptions, we emphasise transparency and education, showcasing successful projects and sharing lessons learned. A prime example is the “Hope Rise” development in Bristol, a pioneering zero-operational-carbon project comprising 11 homes for vulnerable young people at risk of homelessness. A year-long post-occupancy study by an independent body validated the as-designed energy performance of the building, demonstrating the efficacy and sustainability of modern modular construction.
The lessons learned from “Hope Rise” and other projects highlight the importance of collaboration and knowledge sharing within the industry. By openly discussing both challenges and successes, stakeholders can dispel myths and build confidence in MMC. Working together we must focus on quality, sustainability, and efficiency of MMC and use successful case studies, rather than rely on outdated terminology that may perpetuate negative perceptions. Proactive communication & continuous education are must to win “hearts and minds”, facilitating broader adoption across the UK.
How do you feel the UK Planning System could reform in order to increase housing deliveries?
The recent updates to the National Planning Policy Framework (NPPF) and the government's commitment to accelerating housing delivery in the UK will boost housing delivery along with few additional reforms like:
- Streamlined Approval Processes: Implementing a more efficient planning approval process, especially for projects that align with local development plans, can reduce delays and provide greater certainty for developers. Consistency across regions and a level playing field will help. Greater resourcing in the planning departments and a willingness to marry the housing crisis with an impetus to deliver new homes is required.
- Support for MMC: Recognising and promoting the benefits of MMC, such as modular construction, can lead to faster and more sustainable housing solutions. Incorporating policies that encourage the use of MMC can help meet housing targets more efficiently.
- Utilisation of Brownfield and 'Grey Belt' Land: Prioritising such developments can protect valuable green spaces while addressing housing shortages. Clear guidelines on land classification and development potential can facilitate this approach.
- Enhanced Community Engagement: Fostering early and meaningful engagement with local communities can build support for new developments. Transparent communication about the benefits and impacts of proposed modular projects can alleviate concerns and reduce opposition to MMC-led developments.
- Investment in Planning Resources: Allocating adequate resources to local planning authorities can improve the efficiency and effectiveness of the planning process. Addressing workforce challenges and providing training can enhance decision-making and support timely project approvals.
By implementing these reforms, the UK planning system can better support the timely delivery of high-quality, sustainable housing projects, contributing to the government's housing targets and addressing the nation's housing needs.
To find out more about Zedpods, head to their website. Likewise, Zedpods will be leading a session at our New Homes in New Ways Summit, view the programme and book tickets here.
