Lenders and local authorities need to embrace more radical solutions to help meet demand for housing in the UK, according to Nationwide Building Society.
Nationwide senior manager of New Build, Jeremy Cook called for an increase in the number of new modular homes being constructed, which can be built off site and transported to areas needing additional housing.
Speaking at the Financial Services Expo in Coventry Cook says: “There is no easy fix to build more houses.” He says that while the number of new build housing starts had increased since the credit crunch, developers were still struggling with a number of key issues, including an ageing and migrant workforce, securing the right skills from employees finding materials and dealing with land and planning issues.”
He adds: “All parties need to get together across this in the marketplace. We need to build more quickly and we need to embrace modern methods of construction such as modular homes.
“Getting these properties from where they have been built to the site is the big challenge in this. Lenders and local authorities need to embrace these new methods of construction.”
Cook says that the new build market offers fantastic opportunities for mortgage brokers. “The good news is that new-build is a broker marketplace.”
But he points out that advisers looking to make in-roads into this market had to look at what developers required from those on their broker panel and the services that was offered. “Advisers need to offer a service from 8am to 8pm seven days a week. Developers want a 28-day exchange from their clients in order to get certainty – it generates a committed buyer.”