A warning from the National Federation of Builders last month stressed that the housebuilding sector “needs help” as the ongoing materials shortage continued to cause significant disruption to the creation of new homes.

Since the start of the coronavirus pandemic, we’ve seen shortages of labour, materials and designated development land — although the latter was a problem long before the crisis began.

The green agenda is fundamental to our success

Clearly, we need to tackle these challenges as a priority, but this also brings into question whether our current approach to housebuilding is fit for purpose. Even before these shortages, the UK consistently failed to hit its target of building 300,000 new homes each year, which we know is essential to counteracting undersupply. Just recently, in fact, research from StripeHomes found that, at current rates, we would not achieve this target until 2028.

Rethink required

We may do well to have a rethink and consider how alternative building methods may bring us closer to our aims.

The UK’s leading housebuilders are already making changes to build more energy-efficient and climate-friendly homes, but modern methods of construction (MMC) also pose a meaningful solution. By transforming how we build homes in this country, we can help to both reduce emissions and create high-quality developments, at speed.

Even before these shortages, the UK consistently failed to hit its target of building 300,000 new homes each year

Modular manufacturing is, by design, about doing things more efficiently. The results to date suggest this approach means projects are completed faster and with less disruption to existing communities by keeping noise, mess and traffic at minimal levels.

MMC also helps to address the issue of housing’s carbon footprint. Homes currently account for around 15% of the UK’s annual carbon emissions, or 22% when energy generation is factored in to the equation, so we need to make positive changes any way we can.

Fewer materials, less waste

Legal & General’s modular housing uses design features and technologies such as sustainable building fabric, heat pumps and solar-photovoltaic cells to support energy efficiency. In addition to lean manufacturing techniques, such as value stream mapping, it means using fewer materials and generating less waste than traditional methods.

Identifying solutions to the UK’s housing crisis in a way that ensures there is also a future for coming generations will be key to addressing the issues we now face. The green agenda must be in all our minds. It is fundamental to our success.

We may do well to have a rethink and consider how alternative building methods may bring us closer to our aims

I should also point out that, to effectively reduce the carbon footprint of homes, we need to address existing housing stock. I’ve spoken previously about the need for mortgage lenders to take a more involved role in furthering this cause. At present, the range of green mortgages we see on the market rewards owners of homes that are already energy efficient. However, we also need to find ways to help owners of homes that require potentially extensive remediation works.

Funding improvements

Research from the Intermediary Mortgage Lenders Association found that the chief barrier to homeowners wishing to improve their energy efficiency was cost, and we need to find ways to tackle this problem head on. Currently the cost of borrowing is low and consumers should leverage further advances and second charge lending to fund home improvements.

The first step to engaging homeowners is ensuring they have an up-to-date energy performance certificate rating so they are clear about the best ways to improve their home.

Is our approach to housebuilding fit for purpose?

The impacts of climate change are increasingly apparent. To do its part, the housing and mortgage market needs to prioritise the green agenda, implement structural changes to lending and development works, and help to educate consumers about the impact of their home on the environment.

Danny Belton is head of lender relationships at Legal & General Mortgage Club