Industry leaders have agreed a key step towards insuring and mortgaging new homes built using Modern Methods of Construction (MMC), housing minister Christopher Pincher has announced.
Warranty providers have signed a Memorandum of Understanding agreeing to take meaningful steps towards having a shared minimum standard for assessing homes built using MMC – new housebuilding techniques in which homes can be manufactured offsite and assembled onsite.
This will help open up mortgage and insurance products for MMC homes by assuring lenders and insurers of the quality and durability of these homes, boosting an industry that allows homes to be built in days instead of months.
Christopher Pincher, housing minister, said: “Building green, well-designed homes is at the heart of this Government’s mission to support people in every part of the country.
“We’re bringing together the talents of our manufacturing and financial industries to back new technologies that could see us leading the world in the design of high-quality, low-carbon homes with the mortgage and insurance products needed to support them.”
Mark Farmer, MMC Working Group chair and government MMC champion, said: “This MoU is an important milestone in improving underwriting confidence in Modern Methods of Construction.
“Greater collaboration and transparency in technical assessment and validation across the market will ensure we have consistency of approach and can drive a more unified quality and standards led approach to innovation.
“I would like to thank everyone that has been part of the complex journey of arriving at this agreement.”
This post has originally been featured in Property Wire.