Warranty providers have agreed to work towards a shared standard for assessing homes built using modern methods of construction, MMC.
A memorandum of understanding has been signed by warranty providers for a minimum standard for assessing homes.
MMC working group chair Mark Farmer has described the announcement as a ´milestone´ for the sector and would make lenders more confident about these new housebuilding techniques.
The memorandum has been signed by the National House Building Council (NHBC), insurers BLP LABC Warranty, and Premier Guarantee – a significant representation of the warranty market.
“Greater collaboration and transparency in technical assessment and validation across the market will ensure we have the consistency of approach and can drive a more unified quality and standards-led approach to innovation,” said Mr. Farmer.
Right now, warranty providers use different standards for assessing homes which makes it hard to gauge test parameters.
Standardized warranties will unlock funding
Brokers Hank Zarihs Associates said that a common standard for warranties would make it easier for SME housebuilders to get finance for schemes using this type of technology.
The government said industry research suggests prefabs have the potential to be more environmentally sustainable, reducing heating bills by up to 70 percent.
MMC housebuilders are gradually gaining more traction with like Homes announcing in May it was opening new offices in London, Birmingham, and Bristol.
Barratt Developments, Crest Nicholson, and regeneration developer Urban Splash are among the major housebuilders currently using MMC.