First time buyers in Britain could collectively save £1.3 billion annually if more modular homes were available to help them on the housing ladder, it is suggested.
Changing the way new homes are constructed homes could reduce the cost of building a property by around 20%, a saving that could be passed directly to first time byers, according to research by modular housing specialist Comfortable Living.
It says that on average across the UK a residential detached house costs £1,230 per square metre to construct. That’s £82,394 for the average UK house of 67.8 square meters but once you allow for external works at another 20%, a 15% risk allowance, and a builders fee of 10%, the cost rises to £126,592.
However, Comfortable Living points out that it can supply a property for 20% below this cost, resulting in a saving of £25,318 for the average buyer and adds that as 29% of new homes are sold to first time buyers, this equates to 53,000 homes which last year would have saved first time buyers £1.3 billion.
The firm also points out that it could make new homes accessible to first time buyers without the need of the flagship Help to Buy scheme.
Comfortable Living offers a range of standardised modular homes ranging from two, three and four bed options. They are manufactured in the UK and meet the high standards set for housing in the UK.
The homes are approved by the NHBC, the UK’s leading warranty and insurance provider for new homes, qualify for Homes England grants and approved by the main mortgage lenders as well as being compliant with the National Design Space Standards. They are also energy efficient, come with a no quibble guarantee and freehold.
‘Modular housing can provide a realistic solution to at least help address the current housing crisis. Of course, like the traditional process, the overall cost is relevant to the cost of the land for any given plot, but the construction cost and time can be drastically reduced through the modular construction process,’ said Saadat Khan, chief executive of Comfortable Living.
‘We can assemble a house in less than a week at our facility and once delivered on site, it can be erected in just half a day with the money saved passed onto the homebuyer, not pocketed as profit,’ he explained.
‘Had the small proportion of new build properties that were built and purchased by first time buyers last year been done so through modular construction, the savings would have been vast,’ he added.