// ARTICLE


MODULAR


CONSTRUCTION’S ROLE IN DELIVERING THE UK’S NEW TOWNS VISION


The UK government’s New Towns programme received significant impetus from the New Towns Taskforce final report, released in September 2025. The report shortlisted 12 potential sites across England and advocated for the establishment of development corporations to drive delivery, offering powers for land assembly, infrastructure planning, funding mechanisms, and long-term stewardship.


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ather than focusing solely on housing numbers, the Taskforce prioritises creating genuinely sustainable, well- connected communities with strong local identity, green spaces, economic vitality, and inclusive design.


Modern methods of construction (MMC)— particularly volumetric modular and panelised approaches—are repeatedly flagged as essential for achieving the required pace, quality, cost certainty, and environmental performance at scale.


The scale of the challenge and why traditional methods fall short


With a persistent housing shortfall exceeding four million homes and recent annual delivery rates languishing around 200,000 units, the government’s commitment to 1.5 million new homes over the current Parliament demands an average of 300,000 completions per year—a target that traditional methods have consistently failed to meet. New towns introduce further complexity: sites are frequently greenfield or edge-of-settlement locations requiring new utilities, transport links, schools, healthcare facilities, and community infrastructure from scratch.


Onsite construction in such contexts suffers from prolonged timelines (oſten 18–24 months per phase), weather vulnerability, high waste levels (typically 15–20%), heavy reliance on skilled labour, supply chain volatility, and variable quality control. In contrast, offsite MMC provides factory-controlled production that delivers up to 50% faster build times, 30–40% less onsite labour, waste reduced to below 5%, predictable


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costs, and pre-manufactured value (PMV) oſten exceeding 70–80%.


Volumetric modular construction: enabling rapid, high-quality rollout


Category 1 volumetric modular systems fabricate complete, volumetric units—entire rooms, apartments, or house sections—offsite, fully fitted with insulation, MEP services, internal finishes, kitchens, bathrooms, and increasingly integrated renewables such as solar PV panels, mechanical ventilation with heat recovery (MVHR) units, or pre-plumbed low-carbon heating systems including air-source heat pumps.


These modules are transported, stacked, and connected onsite in a matter of days per building, with wet trades minimised. For new towns, volumetric offers scalability through repeatable typologies (e.g., two- to four-bedroom family homes, one- and two-bed apartments, starter units for young professionals) while allowing facade treatments, roof profiles, and layout variations to reflect local character and vernacular styles.


Industry uptake has accelerated markedly, with MMC accounting for approximately 24% of new residential starts in 2025 (up from 18% in 2024), driven by greater confidence in supply chains, proven performance data, and policy support. The Taskforce explicitly recommends that development corporations secure long-term, visible pipelines to stimulate factory investment and expansion, potentially including regional or site-adjacent manufacturing facilities to enhance local employment, reduce transport emissions, and improve logistics efficiency.


Panelised and hybrid systems: flexibility for phased placemaking


Category 2 panelised MMC utilises offsite- manufactured flat elements—structural insulated panels (SIPs), cross-laminated timber (CLT), light-gauge steel framing, or precast concrete cassettes—for rapid onsite envelope erection. These provide superior airtightness, thermal efficiency (U-values frequently below 0.15 W/m2K), acoustic performance, and reduced structural weight, making them particularly suited to sites with challenging ground conditions or flood-risk zones.


Phased delivery becomes straightforward and efficient: panelised systems can deliver weather- tight residential phases quickly, enabling early occupation, community formation, and revenue generation from sales or rents, while subsequent phases introduce essential amenities such as primary schools, GP surgeries, local shops, workspaces, and leisure facilities using compatible modular components.


Embedding sustainability and circular economy principles


The Taskforce insists new towns must achieve net-zero carbon in operation, low embodied carbon across the lifecycle, climate resilience against flooding and overheating, and net biodiversity gain through green infrastructure. MMC is well positioned to lead this transition: factory processes enable precise material optimisation, closed-loop recycling of offcuts, and greater adoption of low-impact alternatives including mass timber (acting as a carbon sink), recycled aggregates, hempcrete insulation, straw- based panels, or innovative low-carbon concretes.


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