Agenda item

To receive a report from the Head of Housing & Health providing the PDG with the strategic and policy context supporting the delivery of modular (modern methods of construction, MMC) social housing in the Mid Devon Housing (MDH) Housing Revenue Account (HRA) development programme.

The Group had before it a report * from the Head of Housing & Health providing it with the strategic and policy context supporting the delivery of modular (modern methods of construction, MMC) social housing in the Mid Devon Housing (MDH) Housing Revenue Account (HRA) development programme.

The following was highlighted within the report:

·         The report dealt with some of the misconceptions regarding modular schemes. The report recognised the variety of different schemes that could be undertaken, not just modular but also more traditional methods of construction. The report provided a clear reference point moving forwards.

·         The beginning of the report set out the key strategic position of the Council in terms of the national housing crisis.

·         The Corporate Plan stated strong aspirations regarding a housing development programme. The Council had to try and navigate various Government funding schemes which were more orientated towards modern methods of construction and attempts to move towards net zero carbon emission.

·         Limiting costs to the Council was a significant factor in determining build methods.

·         The Council faced challenges in terms of infrastructure, utilities, economies of scale and the types of sites available for development. There were sometime planting schemes to consider as well as biodiversity, draining and flooding issues, all specific to individual sites.

·          No two sites were the same making bench marking very difficult.

·         When looking at net costs the Council’s schemes were benchmarking well.

·         Other factors the Council needed to consider were the speed of construction, the quicker a property was built the quicker it could be rented out as well as the effect of construction on other tenants and neighbours.

·         Accommodation needed to be sympathetic to the surrounding area.

·         Feedback had been very positive. Modular builds could be a benefit to tenants in terms of lower energy costs.

·         This same report would be on the Scrutiny Committee agenda for 9 June 2025.   

Consideration was given to:

·         Future proofing – and the 60 year Building Regulation rule. It was explained that this regulation was the same for traditional builds as well as modular. It was exactly the same standard.

·         Could the components of the Social Value Impact be measured? It was agreed it was very difficult to analyse the benefits to using prisoners for example in the construction process as a means of trying to ensure non-re-offending by providing trade skills.

·         Was there a distinction between savings for MDDC and savings for residents?

·         MMC were not automatically cheaper, however, at present it was not automatically a cheaper way to build homes. MMC required a constant pipeline, a repetition of product, and thus relied on economies of scale or highly localised manufacturing efficiencies and flexibility in order to generate ever-more efficient returns. Thus, larger scale projects and a consistent pipeline would mean eventual, more significant cost savings, but as it stood today, the industry was not at that scale.  The Council had built or intended to build 93 MMC properties. What was the scale required?

·         One of the tenants was able to provide first-hand experience of living in a Zed Pod modular home describing it as ‘spacious’ and ‘perfectly sized’. Overheating was an issue and it would be nice if it could be designed to have more windows but on the whole the positives outweighed the negatives and as tenants they would score it 8/10.

·         The relationship between the Council and Zed Pod Ltd was on a contract by contract basis. The Council was open to looking at other types of development and contractors if necessary.

·         The Council had considered adding modular extensions to existing housing stock particularly when considering adaptations, however, there were challenges with the planning process and the groundworks needed to be right in order to proceed.

·         It was confirmed that one of the scheme due to be completed later in the year would provide 10 new modular builds providing wheelchair access. The service tried very hard to marry up particular needs with available and future properties. Meeting local need was a priority.

RECOMMENDED to the Cabinet that:

a)    The report be NOTED.

b)    The Cabinet continues to adopt an HRA development programme with a focus on delivering MMC, modular net-zero social housing where possible and viable as part of the Council’s future Housing Strategy.

(Proposed by the Chair)

Note: (i) * Report previously circulated.

(ii) Cllr G Czapiewski abstained from voting and requested that this be recorded.

(iii) Cllr S Chenore left the meeting at 16:15pm and was not therefore present during the vote.

(iv) Cllrs Cairney and Adcock were unable to vote to as they had left the meeting room during the discussion of the item.