The housing sector could be able to build homes for just half of Prescott鈥檚 拢60,000 target using prefabs imported from China
The homes could be imported and built for as little as 拢30,000, according to Tim Young, partner with construction consultant John Rowan and Partners.
Young said at least one firm is actively looking at the possibility of importing the homes en masse and selling them on to developers, including housing associations. He added that the firm is likely to make an announcement in the next month. A number of unnamed housing associations have already shown an interest in buying the technology once the import deal is signed, he claims.
The savings come from vastly lower labour costs. In China labour costs about 50 cents an hour, compared to $25 in the UK or $5 in Poland, where some of the homes bought by UK housing associations are built.
Young said: 鈥淵ou would expect to achieve pretty substantial savings even with shipping costs on top. But to achieve that, you鈥檙e going to have to make sure the whole supply chain comes from China.鈥
He said the savings were bound to attract the eye of government. 鈥淵ou could get a two-bed house built for 拢30,000. If you can build twice as many houses for the same cost, I would be surprised if the government didn鈥檛 think that was worth going for,鈥 he said.
Housing associations have imported homes from abroad before 鈥 Accent and Kelsey housing associations already import from Canada, and Hyde Housing Association is importing homes from Poland. But Young believes that the savings gained by importing from China could result in a 鈥渟tep change鈥 for the industry.
鈥淭here are already units that have been imported from Poland. This might be a bit further [afield], but the issues are no different,鈥 he said. 鈥淚t is one of those things that could be absolutely huge. It could revolutionise the industry.鈥
Faraz Baber, director of regeneration and development for the British Property Federation, said: 鈥淎s long as it is conforming
to workmanship and design [standards], whether it comes from Europe or not is not really the point.
鈥淸The issue] with off-site prefab is all about whether it has the longevity. That is why we find mortgage lenders are still looking into whether they are comfortable lending against off-site prefab properties.鈥
Mike Kirk, of Hyde Housing Association, said: 鈥淥ur system is built in Poland but it is built to our specifications and design. I think that is the key issue really. It is no good importing something which might comply with local requirements but doesn鈥檛 comply with building regulations.鈥
Source
Housing Today
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