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  • Agenda item

    Value for Money Report- Traditional Versus Modular Builds (1:20:37)

    • Meeting of Cabinet, Tuesday, 8th July, 2025 5.15 pm (Item 23.)
    • View the declarations of interest for item 23.

    To receive a report from the Head of Housing & Health providing Cabinet 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.

    Minutes:

    Cabinet had before it a report * from the Head of Housing and Health on the Value for Money Report and Traditional Versus Modular Builds.

     

    The Cabinet Member for Housing, Asset and Property Services outlined the contents of the report with particular reference to the following: 

     

    • This was a key, well evidenced report setting out the strategic, policy and value for money context regarding this Council’s successful, on-going Housing Revenue Accounts (HRA) development programme which had a focus on high-quality, good-value housing that apply modular, modern-methods of construction (otherwise known as MMC).
    • The benefits of the Council’s modular MMC approach were clearly articulated through the report and supporting annexes, and included important bench-marking information in the context of traditional build and other MMC affordable housing schemes of different types, within the district and regionally.
    • The benefits were not only represented through net development costs that compared well to other, sometimes lower specification, build types, but through ability to provide housing that met local needs at pace.
    • Feedback from the Council’s tenants living in those modular homes had been very positive overall and the completed schemes to date had been widely accessed by other local authorities, registered providers and most recently the Homes England Director of the Affordable Homes Programme as exemplar projects. It was important not to lose sight of the fact these were decent homes, providing essential accommodation where most required for those in priority housing need, who maybe care experienced and may also be homeless.
    • The report had received a thorough discussion and debate through both the Homes Policy Development Group (PDG) and Scrutiny Committee in recent weeks who had both supported the report recommendation. Furthermore, each project put forward for Homes England funding was subject to their external, assessment of viability and value for money (VfM) assessment which was further welcome assurance.
    • Value for money social housing was vital if the Council were to continue setting an example locally, regionally and indeed nationally in the Council’s approach to tackling the housing crisis that was impacting our communities.

     

    Discussion took place with regards to:

     

    ·         The progress that had been made on providing Social homes houses.

    ·         In regards to the Willand builds and whether there was a completion date on the Somerlea builds?

    ·         The achievement was remarkable, however the concerns about the government housing targets that were being set, as an authority could this Council push back to the Government?

    ·         It was positive that the change of rules from Government around the Right to Buy Scheme.

    ·         Did the Value for Money account for whole life cost such as ongoing maintenance, energy performance and refurbishment.

    ·         The ZED pods seem to exceed the minimum standards in terms of energy performance and carbon emission, could officers provide more details on the expected utility savings and were these monitored. 

    ·         Offsite manufacturing and bench marking across the Country and would the efficiency help aim to meet the targets in the corporate plan.

    ·         Whether it was 18 months to complete a traditional build.

     

    RESOLVED that:

     

    1.    Cabinet continued 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 as recommended by the Homes Policy Development Group.

     

    (Proposed by Cllr J Lock and seconded by Cllr J Wright)

     

    Reason for Decision:

    Homes were a strategic theme with specific objectives to increase the delivery of quality designed, well built homes across the housing market to meet identified needs and building of energy efficient and low carbon homes.

     

    Note: *Report previously circulated

     

     

    Supporting documents:

    • HPDG 030625 MDH Modular VFM & BP Report, item 23. pdf icon PDF 696 KB
    • HPDG 030625 MDH Modular Annex A Zed Pods Standards, item 23. pdf icon PDF 443 KB
    • HPDG 030625 MDH Modular Annex B Benchmarking, item 23. pdf icon PDF 452 KB
    • HPDG 030625 MDH Modular Annex C Awards, item 23. pdf icon PDF 91 KB
    • HPDG 030625 MDH Modular Annex D St Andrews SV Econ Appraisal, item 23. pdf icon PDF 802 KB