purchase, hire, or lease of modular hospital buildings, diagnostics facilities, and related accommodation. McAvoy was among the firms awarded multiple lots, while other key players secured places across 18 new-build and three hire-and-lease lots.


This approach helps address capacity pressures in healthcare through factory-based processes that can cut delivery times significantly compared with traditional construction. It also supports broader public-sector projects in housing and justice where speed and predictability are essential.


Industry observers view the framework as evidence of broader systemic adoption of MMC in public infrastructure. Consistent access to such agreements provides manufacturers with greater pipeline visibility, encouraging investment in technology, skills, and factory capacity.


The initiative aligns with government drives to speed up delivery and improve value in essential services. As uptake grows, focus remains on seamless integration with building regulations and performance standards, including fire safety and net-zero requirements.


This framework represents an important step in embedding modern methods of construction across NHS and public procurement, positioning offsite techniques as a core tool for future infrastructure delivery.


By offering pre-approved suppliers and flexible procurement options, the agreement enables public bodies to respond more rapidly to urgent capacity needs while delivering high-quality, sustainable buildings. The framework is valued at up to £3.6 billion and is expected to fast-track projects across health, housing, and other sectors.


2026 poised as potential turning point for MMC adoption in UK construction


Industry commentators suggest 2026 could mark a critical mass moment for modern methods of construction, with modular and offsite techniques moving closer to mainstream use in key sectors.


Housing associations and local authorities are already increasing reliance on MMC to meet delivery targets, while commercial developers explore its potential for cost and labour efficiencies. New factory investments and expanded production lines are preparing to scale output in response to growing demand.


Government policy continues to favour offsite solutions in public procurement, with frameworks such as NHS Modular Buildings 3 and YPO’s new MMC agreement providing multi-year visibility for manufacturers. Benefits cited include faster build times, improved quality control, lower waste, and better alignment with sustainability and net-zero objectives.


Challenges around skills, insurance, and proven long-term performance persist, but collaborative efforts, new standards such as PAS 8700:2025, and lessons from recent projects are helping to address them. As experience grows through repeat orders and framework usage, confidence in MMC is expected to build steadily.


Analysts note that if current trends continue, 2026 could see modular approaches become both logistically and economically preferable for a wider range of projects, particularly in housing and healthcare. Regional housing programmes and public-sector capital frameworks are increasingly specifying MMC as standard.


This potential shiſt would represent meaningful progress towards higher productivity and reduced environmental impact across the construction industry.


The coming year offers an opportunity for the MMC sector to demonstrate its value at scale, supported by policy momentum, practical efficiencies, and growing client familiarity.


With social housing providing a stable pipeline and public frameworks reducing procurement friction, 2026 is shaping up as a pivotal period for wider adoption of offsite construction across the UK. Commentators highlight that MMC adoption may cross the threshold into mainstream practice, with housing associations and local authorities already embracing offsite to meet targets. The combination of sustained demand and maturing standards is expected to drive the sector forward.


London fire brigade urges robust fire safety verification for modular projects


The London Fire Brigade has called for thorough, project-specific fire safety testing on modular and MMC developments to ensure performance is properly validated before handover.


In its thematic report published in September 2025, the Brigade highlighted instances where fire design aspects of offsite projects required stronger verification regimes. The 11-page document stresses the “very bespoke nature” of many modular structures and recommends individual fire tests “to enable full understanding of the performance of the structure when subject to heating and cooling as a result of a fire incident”.


Buildoffsite executive director Dirk Vennix has warned that mandatory project-specific testing could add significant cost and time, potentially delaying pipelines at a moment when modular capacity is needed to help deliver housing and infrastructure targets.


The discussion reflects the sector’s ongoing maturation as it scales into larger mainstream applications. Stakeholders are collaborating on standardised approaches that preserve the speed and quality advantages of factory production while meeting stringent safety and regulatory expectations.


Fire authorities, manufacturers, standards bodies, and insurers are working together to resolve outstanding issues. Progress on guidance, assurance schemes, and the integration of fire engineers into design teams is seen as essential to maintaining momentum without compromising public safety.


The report also raises questions for design teams in areas such as structural performance, firefighting access, and general fire precautions, encouraging early engagement with fire services during the design phase.


This focus on enhanced verification comes as MMC moves beyond niche use into higher-volume residential and public projects. It underscores the importance of balancing innovation with robust risk management. Collaborative industry efforts are expected to produce practical solutions that support continued growth of offsite construction while addressing legitimate safety concerns raised by the London Fire Brigade.


The emphasis on rigorous testing should ultimately strengthen confidence in modular buildings and support safer, faster delivery across the UK. The LFB report, produced following joint working with the National Fire Chiefs Council, calls for fire engineers to be appointed on all modular projects to assess fire impact on the structure and may require testing of connectors, fire stoppings, and linings to the point of failure.


Spring 2026 M39 7


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