UK housebuilders to prefabricate hundreds of homes in factories

Lechley Associates Ltd

One of Britain’s major housebuilders is to prefabricate up to a quarter of its homes in a factory, in the latest attempt by the construction industry to tackle the housing shortage. Berkeley Homes, which builds 4,000 homes a year, is planning to create a facility in Kent next year where builders will work to produce up to 1,000 houses and apartments annually which will then be craned on to sites.


Another company, nHouse, is setting up a factory in Peterborough with the capacity to build 400 homes a year, complete with light fittings, bathrooms, bookshelves and kitchens. Production is expected to start in January. It claims it can build a house in 20 days in the factory which can then be erected on site in half a day. Several other developers, including Legal and General and Urban Splash, have also launched prefab home divisions.


Fears of a shortage of skilled construction workers caused by an ageing workforce and an exodus due to Brexit are part of the reason for the revival of prefabrication, which last provided a significant number of homes after the second world war.


The government has set a target of building 300,000 homes a year by the middle of the next decade. Despite recent increases in activity, the last annual figure was 190,000. A Berkeley spokesman said: “We have acquired a 10-acre brownfield site from the Homes and Communities Agency to build a factory for modular homes in Ebbsfleet, Kent. This will have the potential to deliver up to 1,000 homes a year.


“Construction of the factory could begin next year. While the speed of production and the impact on skills and labour are important factors, our real driver is the quality we can achieve with modular housing.”


The nHouse has been designed by the architect Richard Hywel Evans and is made in four modules from engineered pine panels which are transported on the backs of lorries and are then clipped together on site and connected to pre-existing services. Its built-in features include solar panels, a robot vacuum cleaner and even a drone landing pad – looking forward to a time of aerial deliveries.


A three-bed house is on sale to developers or individual householders from £170,000 to £185,000, which is about the same price as a standard house built using wet trades.


Nick Fulford, the director of nHouse, argues that with 100 workers operating on an indoor production line rather than on muddy building sites in the elements, the homes will suffer from fewer snagging problems.


by Scott Lechley 23 October 2025
I'm incredibly proud to share our new strategic guide: For too long, the construction industry has faced a significant gap in diversity. We all know that good intentions and diversity statements aren't enough to create meaningful change. It's time to move beyond words and take real, measurable action to dismantle the systemic barriers that hold talented people back. This document serves as our idea for achieving just that. It outlines a practical, actionable strategy for building a more inclusive and thriving construction industry, one where capability is always met with opportunity, regardless of gender. We believe that fostering diversity isn't just the right thing to do; it's a decisive business advantage that drives innovation, improves safety, and boosts financial performance. Our strategy is built on four core pillars: Re-engineering the Pipeline (Recruitment): We Must Transform How We Attract Talent. This means implementing bias-free hiring processes, such as blind CV reviews, crafting inclusive job descriptions, and forging new partnerships with community organisations to find untapped talent. Overhauling the On-site Culture (Retention). This is the most challenging, yet critical, part. We must establish non-negotiable standards, including zero-tolerance policies for harassment, providing correctly fitting PPE for women, and creating psychologically safe environments where every voice is heard and valued. Creating Pathways for Growth (Advancement) Opportunity is about building a career, not just having a job. The commitment to creating transparent and unbiased promotion tracks, providing targeted leadership training, and implementing formal sponsorship programmes where senior leaders actively champion women's advancement. Accountability From the Top (Leadership) None of this works without genuine leadership buy-in. Change must be driven from the top by setting public, measurable DEI goals and making progress a key performance indicator (KPI) for senior managers, directly linking it to their performance reviews and compensation. I'm attaching the whole document below for you to read and share. Let's start a conversation about how we can work together to build a better, stronger, and more inclusive future for the UK construction industry. What are your thoughts on creating sustainable change? #WomenInConstruction #UKConstruction #DiversityAndInclusion #Leadership #DEI #BreakingBarriers #FutureOfConstruction
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