Modular housing market suffers 20% Covid hit

Share this article:

The productivity of modular housebuilding has been reduced during the pandemic, with reductions in contractor output much like those seen in conventional construction, according to a new report from analysts at AMA Research.

The firm has forecast that overall output among panelised modular building contractors will have fallen 20 per cent below 2019 levels by the end of this year. It added that the total market for this type of offsite construction was worth £753m in 2019, but that the impact of the virus meant the overall market value will drop 15 per cent to £636m in 2020.

However, the report also forecast that all types of offsite construction are likely to return to full output more quickly than conventional sites, arguing that factory settings are better suited to safety measures such as social distancing. It forecast that the panelised modular market would return to growth in 2021 and surpass £700m in value again in 2022.

“The adaptation of the working environment has been an easier transition than a traditional construction setting, due to it being less labour intensive and requiring fewer personnel on site,” the research firm said in a statement. “With all construction work carried out on a production line, activity can be planned and monitored to ensure that social distancing is adhered to.”

Similar projections about the resilience of offsite approaches were made in September, at the launch of a report into the future of modular housing called Build Homes, Build Jobs, Build Innovation, jointly prepared by consulting firm Cast Consultancy and architecture practice HTA Design. The paper also cited research that found modular methods cut carbon emissions on a residential project in London by 40% compared to a traditional build process.

AMA Research also emphasised potential sustainability benefits. It said timber-based modular houses employ “a natural, renewable, low-carbon material” and that they “can be built, on average, eight weeks faster when compared with traditional construction methods”.

 

To stay up to date on the latest, trends, innovations, people news and company updates within the UK property and housebuilding market please register to receive our newsletter here.

Media contact

Rebecca Morpeth Spayne,
Editor, Showhome Magazine

Tel: +44 (0) 1622 823 922
Email: [email protected]

About Showhome

Showhome magazine is the leading authority in residential design and housebuilding content, delivering expert news, in depth articles, exclusive interviews, and industry insights across print, digital, and event platforms. Published 10 times a year, the magazine is a trusted resource for professionals seeking updates and analysis on the latest developments in the home and interiors sector.

To submit an article, or for sponsorship opportunities, please contact our team below.

Bethany Kellock Picture

Bethany Kellock

Editor

Paul Thornhill Picture

Paul Thornhill

Sales Manager

Afua Akoto Picture

Afua Akoto

Marketing Manager

Related News

Russell Roof Tiles contributed to a remarkable home makeover on DIY SOS, delivering tiles for a family's life-changing renovation. yourshow-home.com

Russell Roof Tiles featured on BBC’s DIY SOS

Russell Roof Tiles contributed to a remarkable home makeover on DIY SOS, delivering tiles for a family’s life-changing renovation
1810/SCHOCK will be attending regional business events to foster collaboration in the kitchen and bathroom industry. yourshow-home.com

1810/SCHOCK supports regional business events

1810/SCHOCK will be attending regional business events to foster collaboration in the kitchen and bathroom industry
Lutron's intelligent lighting solutions will feature at Decorex 2026, aiming to transform interiors with atmosphere and design. yourshow-home.com

Lutron showcases at Decorex 2026

Lutron’s intelligent lighting solutions will feature at Decorex 2026, aiming to transform interiors with atmosphere and design
WestFraser CaberMDF

Strength, consistency and versatility from CaberMDF

CaberMDF Trade MR enhances moisture resistance, making it ideal for kitchens, bathrooms, and utility spaces.
niche pre tiling yourshow-home.com

Pentland Homes buyers praise Marmox Niches

Pentland Homes integrates Marmox units into their new housing project, boosting aesthetics and functionality.
Ruskin college yourshow-home.com

ESBE valves employed in decarbonisation

ESBE contributes to the success of an energy refurbishment project, increasing efficiency at a historic university.
Vicaima yourshow-home.com

On the front line of design innovation

Vicaima interior doors play a key role in preserving the heritage of Aldershot’s converted military headquarters
Night incog yourshow-home.com

Climate control without compromise

Urban Cooling offers innovative HVAC systems tailored for residential settings, meeting unique architectural and planning needs.
Solfit and ATMOCE sign exclusive partnership for UK new-build housing yourshow-home.com

Solfit and ATMOCE sign exclusive partnership

Solfit partners with ATMOCE to streamline renewable energy solutions for the UK housing market.
Skills shortages continue yourshow-home.com

Construction still facing a skills shortfall

Delve into the skills shortfall in the UK and see how search data highlights interest in trade apprenticeships, especially for electricians.
Scroll to Top