Kate Henderson, Chief Executive of the National Housing Federation, reflects on the current balancing act around safety, sustainability and supply and the part MMC can play
Housing associations have always had to make difficult decisions about where and how to invest in their communities.
But in today’s economic climate, the tensions between long-term and short-term strategic priorities have never felt more acute.
Soaring costs, a labour crisis and rising contractor insolvencies are just some of the challenges facing housing providers, alongside a proposed rent cap and the worst cost of living crisis in half a century.
As they cope with these issues, housing associations must continue to meet urgent targets on fire remediation and decarbonisation as well as boosting the future supply of new homes.
The problem, however, is that it just isn’t possible to do all of this while weathering the current economic storm.
Geeta Nanda, G15 chair and Metropolitan Thames Valley Housing Chief Executive, outlined this point powerfully at September’s National Housing Summit. She warned that some housing chief executives have said they might have to cut back on development to fund critical retrofit and building safety works.
This is a cause for concern, not only because of England’s worsening housing crisis but also because building new homes is a big driver of growth.
Construction creates jobs and strengthens local economies throughout the country and our sector is in a unique position to enable this. Housing associations make a huge contribution to the resilience of the communities they work in by investing in neighbourhoods, SMEs and employment as well as providing stable housing and support for residents. Giving people access to safe, warm, secure accommodation has a positive knock-on effect on jobs and education – all vital foundations for sustainable economic growth.
That’s why we can’t let this conflict between short and long term priorities block our sector’s valuable investment in communities.
One way that some housing providers are overcoming this tricky trade-off is through modern methods of construction (MMC).
Building high quality, low carbon homes that won’t need updating in the future can help organisations to simultaneously increase future supply, sustainability and building safety.
Homes manufactured in a controlled factory environment have a high, consistent build quality. They are well sealed, insulated and ventilated and therefore require less energy to run. Many MMC homes are net zero as standard and one manufacturer recently launched ‘Zero Bills’, the UK’s first offsite home that guarantees residents zero energy bills.
MMC addresses the construction skills shortage, too, offering clean, warm, tech-led environments that may attract younger workers to the sector.
Using offsite construction alongside traditional brick and mortar enables housing associations to continue their role as drivers of sustainable economic growth. They are supporting the domestic manufacturing sector, the construction industry, and the levelling up agenda: most MMC factories are based in regions outside the south east.
Despite the opportunities offered by offsite, it’s not a silver bullet. Development has always been tough for housing associations – even in less volatile times – and it’s especially tough for smaller providers.
That’s why the National Housing Federation, with our members, identified in our recent strategic review that we need to push political parties to fill the gap left by political uncertainty. This will help housing associations of all sizes build the homes that are needed in their communities, right across the country, whilst updating their existing stock.
It’s not always easy for housing associations to find the right balance between priorities when, like now, the pressures are so intense. That’s why we need a well-considered roadmap so our sector can steer its way through the recession and play an active role in creating growth.
Kate Henderson is Chief Executive of the National Housing Federation
31 October 2022
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