News Social housing set to drive MMC rebound heading into 2026
Barbour ABI and industry analysts are pointing to social and affordable housing as the main engine for renewed growth in modern methods of construction (MMC) as the sector enters 2026.
The offsite housing market is forecast to expand from £672 million in 2025 towards approximately £800 million by 2029, underpinned by government commitments under the £39 billion Social and Affordable Homes Programme (SAHP) and earlier targets that encouraged higher MMC uptake among housing associations.
Some providers are already approaching 40 per cent MMC on new schemes, according to Barbour ABI. This represents average annual growth of 4.46 per cent from 2025 to 2029.
This pivot comes aſter inconsistent private-sector demand in recent years, shiſting focus to the more predictable pipeline offered by social housing providers. Policy incentives and the need to accelerate delivery are providing the long-term visibility that modular and volumetric manufacturers require to invest confidently in factory capacity.
Housing associations are forming procurement alliances and frameworks to secure bulk orders, with some aiming for 500-plus units annually to achieve economies of scale and refine MMC processes. A 2024 National Housing Federation survey showed associations planning more than 30,591 MMC homes by 2028. These arrangements help address challenges around staged payments and commissioning that have previously slowed adoption.
Key advantages include faster delivery timelines — oſten 50 per cent quicker than traditional methods — reduced onsite labour and disruption, lower waste levels, and better alignment with net-zero requirements through factory-controlled quality and sustainable materials.
Skills adaptation and insurance remain areas of ongoing focus. Ed Griffiths, head of business and client analytics at Barbour ABI, said “Aſter a difficult period for the sector, we think there is potential for a new growth cycle for offsite housebuilding.”
Stakeholders highlight that sustained public funding combined with clear MMC percentage targets in affordable schemes could unlock further factory capacity expansion and supply-chain improvements. As associations build experience with repeat orders, hybrid and volumetric solutions are expected to become more mainstream.
The combination of stable policy support, collaborative procurement, and demonstrated efficiencies positions social housing as the cornerstone for MMC scaling over the coming years, helping the industry contribute more effectively to national housing targets while maintaining quality and sustainability standards. The £39 billion SAHP commitment over the next decade is seen as one of the most significant interventions in social housing for years, providing the certainty manufacturers need.
BSI releases PAS 8700 standard to boost confidence in residential MMC
BSI has published PAS 8700:2025, the first unified specification for modern methods of construction in new-build residential developments, designed to bring greater consistency and assurance to the offsite sector.
Launched on 30 April 2025 and sponsored by the Ministry of Housing, Communities and Local Government, the standard sets out comprehensive requirements and processes for projects using MMC in full or in part. It covers Design for Manufacture and Assembly (DfMA), quality assurance, durability, fire safety, and sustainability performance from initial design through to manufacturing, assembly, handover and long-term maintenance.
Developed with input from a wide range of stakeholders including RIBA, RICS, the National Fire Chiefs Council, University of Salford, the Association of British Insurers, the Health and Safety Executive, BSR, Studio Partington and the Buildoffsite Property Assurance Scheme (BOPAS), PAS 8700:2025 is the first national standard specifically aimed at guiding the effective deployment of MMC and DfMA in residential settings, encompassing both entire building systems and individual elements.
This marks a significant milestone for residential MMC, providing clearer benchmarks for specification, verification, and performance that align offsite solutions with traditional construction expectations. Developers, manufacturers, insurers, lenders, and regulators are expected to benefit from reduced uncertainty, which could accelerate adoption particularly in social and affordable housing schemes where speed and quality are critical.
The specification addresses both complete building systems such as volumetric modules and individual components, establishing robust processes for deployment while emphasising long-term performance and maintenance.
Industry bodies have welcomed the standard as a practical tool to de-risk projects and improve collaboration across the supply chain. It is seen as timely support for government ambitions to increase MMC use in meeting housing supply goals and net-zero targets.
By creating common reference points, the specification should help planning authorities and investors evaluate MMC proposals more confidently and encourage innovation within a structured framework.
The launch of PAS 8700 is viewed as laying a stronger foundation for scaling high-quality, sustainable modular homes. As the sector matures, the standard is expected to play a key role in mainstreaming offsite techniques while addressing previous concerns around consistency and assurance.
This unified approach equips the industry with the tools needed to deliver safer, more efficient housing at the pace required to tackle the UK’s housing shortfall. It also supports the government’s broader push for industrialised construction.
4 Spring 2026 M39
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