Warranty providers reach ‘important milestone’ after agreeing standard assessment for MMC homes

News24.08.2011.15 AM by Dominic Brady

A memorandum of understanding (MoU) has been signed by warranty providers to introduce a minimum standard for assessing homes built using modern methods of construction (MMC) to boost lender confidence in new housebuilding techniques.

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A memorandum of understanding has been signed by warranty providers to introduce a minimum standard for assessing homes built using #MMC to boost lender confidence in new housebuilding techniques #UKhousing

“We’re bringing together the talents of our manufacturing and financial industries to back new technologies that could see us leading the world in the design of high-quality, low-carbon homes with the mortgage and insurance,” says @ChrisPincher #UKhousing

The government said the MoU will assure lenders and insurers of the quality of homes that are manufactured offsite and assembled on site.

The MoU was delivered via the government’s MMC Working Group and has been signed by the National House Building Council (NHBC), insurers BLP and MD Warranty Inspection Services (MDIS), representing a significant majority of the warranty market.

A number of housing associations and house builders have sought to expand their use of MMC in recent years, and some – including Swan and Ilke Homes – have set up modular construction factories.

Housing minister Christopher Pincher said: “We’re bringing together the talents of our manufacturing and financial industries to back new technologies that could see us leading the world in the design of high-quality, low-carbon homes with the mortgage and insurance products needed to support them.”

Mark Farmer, chair of the MMC Working Group and government MMC champion, hailed the MoU as an “important milestone” towards ensuring confidence in MMC.

“Greater collaboration and transparency in technical assessment and validation across the market will ensure we have consistency of approach and can drive a more unified quality and standards-led approach to innovation,” he said.

The government said industry research suggests that MMC homes can have up to 80% fewer defects and the potential to reduce heating bills by up to 70%.

Currently warranty providers use different standards for their assessment of homes, making it difficult to know what these homes have been tested for.

Jeff Maxted, director of technical consultancy at BLP Insurance, said: “BLP is confident that the MoU we have signed with NHBC and MDIS will result in a sharing of knowledge between warranty providers and increase industry and consumer confidence in the quality and durability of new homes built using MMC – and will build on the work BLP has already undertaken with [the Buildoffsite Property Assurance Scheme] in providing accreditation to MMC systems.”