So what about Modular?

Modular buildings are not new and it has been used in many areas within commercial design globally. However, it is now being adopted in residential build projects within the UK.

But what is it? Modular construction is when the core structure of a building is constructed off-site or at a factory, underplant controlled conditions, using the same materials and designing to the same codes and standards as conventionally built facilities.

many developers who have persisted with new environmentally-friendly schemes which have moved towards environmentally friendly methods of construction in many cases an improved time to market

But in half the time.

Buildings which are produced as modules are then taken to the site to be put together like a jigsaw if you can imagine, a flat-packed building. The time savings from modular construction techniques are a clear advantage and improve overall costs by reducing the build schedule by as much as 50% and further reducing weather-related delays by 90%.

Greener Option Sustainable Property Development

As the construction process is factory controlled there are three clearly distinct advantages to the environment:

1. The flexibility of the modular build process allows for modules to disassembled and reused and relocated, thus reducing the demand or raw materials and energy needed to create new buildings.
2. Limiting waste and controlling inventory reduces shrinkage and in turn impact to environmental factors including the usage of water.
3. Air quality. As the building materials are set in a factory environment, the impact of air moisture levels reduces greatly.

Financing

Modular buildings are slowly becoming more an interesting option in the developer’s arsenal especially where economies of scale matter. However, the speed of take-up and lack of positive policies from central government have not encouraged surveyors or lenders to seriously invest their time in non-traditional construction projects. Even, though, a developer may have an economic argument with a sound development proposition, the valuation of an asset can be hindered regarding the uncertainty of the assets true value due to a poor understanding of new construction technologies and the added values they create.

Azurian Capital works with leading alternative finance lenders who are interested in working with property developers who are interested in using eco-friendly construction techniques to build new residential and commercial properties across the UK.  Try our development finance calculator to understand the costs of financing these projects.