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Saving For a Space Ship

Lenders unsure about Prefab (Vi's renamed "offsite") construction

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 Lenders unsure about offsite construction


Is this the traditional building lobby fighting back ? 


The majority of mortgage lenders are yet to be convinced about whether they should lend on prefabricated ‘modular’ homes constructed offsite.

In November the Building Societies Association championed the construction method, while the government’s upcoming white paper is expected to set out plans to boost the sector.

But if anecdotal evidence is anything to go by a number of lenders have their reservations.

“My personal view is the issue isn’t speed of construction for the market; its access to the right sites and planning consent.”“We have seen rubbish put up in the 1960s in the form of council blocks that is now all having to come down.

He added: “I’d like to challenge how many of these good people who come up with these prefabricated schemes want to live in these properties themselves or want their children to live in them.

“Offsite construction is about speed, and quality and durability should come ahead of speed.”

Simon Read, managing director of Magellan Homeloans, said: “The challenge is whether they’re going to be standing in 25 years; and until you’ve gone through 25 years you just don’t know.

“Workmanship is an issue because it’s all well and good saying it’s created in a workshop and fitted on site but if the person on site doesn’t put the right amount of screws in, or insulate or put the cladding on right you end up with a house that rots on the inside and you don’t know it’s happened until it falls down.”

He added: “We have talked to surveyors who said the problem with timber frames is if they’re not done right and you get a fire it’s gone in two years.

“That’s frightening; that’s what our asset is based on...


Then another article the next day 

L&G reveals what’s required to get firms lending on prefabs  


I don't know if this has put the wind up L & G Homes, but I thought the original articles announcing their £50-500 million investment in prefab building factories was for build to rent. 

However, I phoned them up, and they said they sold prefabs to  big co's, they did not do build to rent themselves.

I asked what the minimum quatity was , they said 10 x  2-3 bedroom houses, although they may do 10 x micro / student flats.


THey could not give me a sq m price as the designs varied, due to customer specific requirements.


They sent me this info & form below


Thank you for your enquiry.

Following up our telephone conversation, our approach is to collaborate with the design team of each prospective client to produce bespoke housing designs that can be efficiently manufactured in our modular facility.

We will use Computer Numeric Controlled machines driven by CAD-CAM design to precision-engineer floors, ceilings, external wall panels, openings for windows, doors and service routes.

The box modules will be assembled and fitted with internal wall / floor coverings, insulation, surface finishes, plumbing and sanitary ware, electrical circuits and sockets, kitchens and fittings (including white goods) in line with specified client requirements.

These modules will be delivered to site and erected by a competent team of installers.

I would like to introduce you to one of our Commercial managers with whom you can have a more detailed discussion about your developments in your pipeline.

To help inform this discussion, I’d ask that you:

-          Complete and return the attached 1 page pro-forma

-          Share any available site layouts / house type designs so we can begin to gauge suitability for modular manufacture

Thanks again for your enquiry,


Development Scheme Name                                                  
Nature of Development (PRS, Social Housing, Student Accommodation, Assisted Living)                                                  
Property Mix (e.g. Housing, Apartments, Hotel, etc.)                                                  
How many properties are proposed for the site?                                                  
What is the range of storeys required for the properties on the site? (e.g. Between 2 and 4 storeys)                                                  
What is the site address including full postcode?                                                  
Who owns the site?                                                  
What is the status of planning consent? (pre-planning, submitted, full or outline)                                                  
Target 'start on site' date                                                  
Target 'first modular delivery to site' date                                                  
Target 'site completion' date                                                  
Does the scheme require funding from L&G?                                                  
Edited by Saving For a Space Ship

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