{"id":515873,"date":"2025-03-05T12:45:15","date_gmt":"2025-03-05T12:45:15","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=515873"},"modified":"2025-03-05T12:50:37","modified_gmt":"2025-03-05T12:50:37","slug":"bitten-councils-abandon-mmc-after-cost-and-quality-problems","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/tech\/offsite-mmc\/bitten-councils-abandon-mmc-after-cost-and-quality-problems-05-03-2025\/","title":{"rendered":"&#8216;Bitten\u2019 councils abandon MMC after cost and quality problems"},"content":{"rendered":"<p>Councils across the UK have abandoned projects involving modern methods of construction (MMC) amid issues around cost and quality, a UK parliamentary committee has heard.<\/p>\n<p>Many councils now have a \u201cpretty negative view\u201d of MMC projects and have done away with them entirely, Anna Clarke, director of policy and public affairs at the Housing Forum, said in an evidence session in Westminster on Tuesday (4 March).<\/p>\n<p><span data-teams=\"true\">In a meeting she attended on Monday (3 March) with councils,<\/span>\u00a0\u201calmost all\u201d said they had tried MMC projects and would not try them again, Clarke told the Housing, Communities and Local Government Committee.<\/p>\n<p>Of particular concern was the higher costs associated with MMC projects. But Clarke also said councils did not find MMC projects were of a higher quality than traditional builds, as had been promised.<\/p>\n<p>\u201cIn theory, you can control quality in factories, [but] that wasn\u2019t their experience on the ground,\u201d she said.<\/p>\n<p>\u201cSome of that quality issue was around the interface between the unit and the groundworks and how it plugs in effectively.\u201d<\/p>\n<p>She also flagged concerns around the high number of MMC firms that had gone bust in recent years, which had made a lot of councils \u201cnervous\u201d.<\/p>\n<p>\u201cThey said, \u2018we\u2019ve been bitten, we\u2019re not doing that again\u2019,\u201d she said.<\/p>\n<p>Despite a strong start from MMC firms, some of the biggest names in the business have stopped using MMC methods, or collapsed into administration altogether.<\/p>\n<p>In October, TopHat <a href=\"https:\/\/www.constructionnews.co.uk\/tech\/offsite-mmc\/tophat-to-wind-down-modular-operations-21-10-2024\/\">announced it would wind down its modular housing operations<\/a>, weeks after modular <a href=\"https:\/\/www.constructionnews.co.uk\/financial\/administrations\/modular-specialist-goes-under-after-costly-hq-move-20-08-2024\/\">specialist ModPods International appointed administrators<\/a>.<\/p>\n<p><a href=\"https:\/\/www.constructionnews.co.uk\/financial\/urban-splashs-modular-spin-off-falls-into-administration-13-05-2022\/\">Urban Splash House<\/a>, <a href=\"https:\/\/www.constructionnews.co.uk\/financial\/administrations\/ilke-homes-enters-administration-with-around-1000-staff-facing-axe-30-06-2023\/\">Ilke Homes<\/a> and <a href=\"https:\/\/www.constructionnews.co.uk\/financial\/midlands-based-modular-construction-specialist-enters-administration-10-03-2022\/\">Caledonian Modular<\/a> also failed in recent years.<\/p>\n<p>But Clarke said she sees a future for modular homes in the years beyond this Parliament, particularly as plans for new towns start to move forward.<\/p>\n<p>\u201cIf you\u2019re building at scale, and you\u2019re building a large amount of houses that are quite similar, and you\u2019re prepared to be reasonably flexible about them not being bespoke, there\u2019s a better way forward then,\u201d she said.<\/p>\n<p>Mark Reynolds, co-chair of the Construction Leadership Council and chairman at <a href=\"https:\/\/www.constructionnews.co.uk\/contractors\/mace\/\">Mace<\/a>, told the committee that MMC could provide the construction and property sectors with \u201ca great opportunity\u201d.<\/p>\n<p>But he argued that a \u201cguaranteed workload for a guaranteed period\u201d is key to making MMC successful.<\/p>\n<p>\u201cThey have to fill that factory 24\/7 in order to be productive and efficient,\u201d he said, adding that if the volume of work fluctuates, MMC firms can face difficulties.<\/p>\n<p><em>Construction News <\/em>approached the Local Government Association and the Ministry for Housing, Communities and Local Government for comment.<\/p>\n<p>The committee session focused on the industry\u2019s ability<a href=\"https:\/\/www.constructionnews.co.uk\/government\/planning-system-reforms-take-effect-in-bid-to-boost-housebuilding-12-12-2024\/\"> to meet the government\u2019s pledge to build 1.5 million homes this<\/a> Parliament.<\/p>\n<p>Reynolds pointed to three issues plaguing the construction industry \u2013 delays in the planning system, costly nutrient neutrality rules, and slow progress at the Building Safety Regulator (BSR).<\/p>\n<p>Nutrient neutrality rules require new homes to be nutrient neutral in areas close to rivers with high nitrate and phosphate levels. Reynolds said the rules regularly cost small to medium-sized developers up to \u00a31m in additional fees for projects, causing them to abandon the projects because they are not sustainable. \u201cThey\u2019re just not going to invest the money because it\u2019s too expensive,\u201d he said.<\/p>\n<p>He also warned that delays in the BSR had caused problems for housing projects. In particular, he flagged concerns that the regulator is taking up to 48 weeks to approve plans for medium-to-high-rise buildings of more than 11 metres in height.<\/p>\n<p>Under the Building Safety Act 2022\u2019s gateway two process, the BSR must review and approve full plans before construction can begin. The legislation stipulates that the BSR should complete this review within 12 weeks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Councils across the UK have abandoned projects involving modern methods of construction (MMC) amid issues around cost and quality, a UK parliamentary committee has heard. Many councils now have a \u201cpretty negative view\u201d of MMC projects and have done away with them entirely, Anna Clarke, director of policy and public affairs at the Housing Forum, &#8230;<\/p>\n","protected":false},"author":90643,"featured_media":494433,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[39315,57171],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<meta name=\"description\" content=\"Councils across the UK have abandoned projects involving modern methods of construction (MMC) amid issues around cost and quality, a UK parliamentary\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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