Researchers predict social housing-driven boom in MMC, with market expected to hit £880m by 2029

The NHF’s findings also revealed that for those respondents using MMC, 32% of their total developments used offsite construction. 

If this trend continues, the trade body believes the sector-wide appetite for MMC homes could be 107,000 by 2028.

Ed Griffiths, head of business and client analytics at Barbour ABI, said: “After a difficult period for the sector, we think there is potential for a new growth cycle for offsite housebuilding.

“Housing policy remains focused on accelerating delivery, with targets for MMC and social housing creating a clear pathway for the sector.

“For that reason, the offsite housing system market is definitely one to watch in the next few years. That view is underpinned by the urgent need to address the UK’s acute housing shortage as the population grows.

“The skills gap also persists and offsite offers a clear solution that will be harder to ignore as higher local housing targets are implemented by Labour.”

Barbour ABI pointed out that MMC was one of the fastest construction sectors to recover post-Covid, thanks to controlled factory conditions and reduction of labour required on site.

However, it acknowledged a recent slowdown in the market after a number of high-profile firms collapsed, including TopHat and Ilke Homes, which generated “negativity around the future use of offsite”.

When Ilke Homes went into administration, Homes England had invested £60m in Ilke and provided a debt facility of £26.9m. The government agency expects “limited recovery” of its Ilke investment.

TopHat racked up losses of £85m across its five companies in its penultimate year of trading, a 2025 trading update revealed.

A year before, a House of Lords inquiry said the government’s approach to MMC is in “disarray” and “simply throwing money at the sector hasn’t worked”.