Skip to main content

Modern Methods of Construction inquiry


Government Response

Modern Methods of Construction utilises a range of approaches, such as off-site manufacturing and improvements to the supply-chain, and is intended to produce more, better quality homes in less time. Compared to more traditional forms of house building, MMC can improve predictability of work and costs, mitigate material shortages and the impact of developments on the local area. According to the Government’s Industrial Strategy, MMC has the potential to reform the residential construction sector so as to meet its target of 300,000 new homes each year, and 1 million between 2017 and 2020.

There have been challenges to implementing the strategy more widely. The Government has identified inconsistent demand in the housing sector and lack of collaborative construction supply chains in expanding MMC practices. The HCLG Committee found in a previous inquiry, Capacity in the Housebuilding Industry, that increased use of MMC would require greater Government support to give “lenders, consumers and builders the confidence to use new methods”.

This new inquiry will look at the benefits achieved by housebuilders who have used MMC techniques and some of the drawbacks that have been experienced. It will examine how national and local government can support the use of MMC by and encourage innovation in the sector.

Terms of reference:

The Committee is inviting submissions on:

  • What are the benefits of MMC, and how can they sustainably boost the housing supply?
  • What are the primary risks to increasing the use of MMC?
  • How could the Government, Homes England and local authorities (a) increase demand for MMC to meet its homebuilding targets and (b) support the construction industry in increasing the use of MMC?
  • How can small and medium sized housebuilders better utilise MMC, including to support innovation and competition in the construction industry?
  • How can challenges related to access to finance (for both homebuyers and developers) be overcome.