Interesting to see that one of the lead stories on BBC News this morning is about the modular homes industry. This isn’t new news but it will undoubtedly promote its existence to the general public and remind many in the property industry of its benefits. The housing shortage is well documented over many years and quoted by changing governments and here we have a way of producing homes faster to feed the demand. Yet the problems still rest with planners, landowners and of course the high street lenders.
Planners need to grasp the changing modern world and sadly a high percentage don’t understand the words modern and changing. Stuck in the past, battling paperwork and too cautious to embrace change seems a common description for far too many planners. How does this change? Not easily is the slightly flippant reply. Directive needs to come from central government hard and fast and the policed locally with enthusiasm and drive. Sadly I suspect change will be a long time coming.
Lenders are the huge issue here as it’s an issue most don’t see. Almost all UK mortgage lenders simply don’t like the unusual. Rusk is their business and they don’t like it! It’s not that long ago that lenders were not comfortable and either wouldn’t lend or where very restrictive on timber framed houses. Now of course timber frames are the norm and an acceptable build practice, but it’s not that long ago mortgaging a new build timber framed house was a challenge. To demonstrate this further on a personal level I have tried to mortgage an existing Huf Haus which most will know as a renowned German build and designed home of notable high quality build standard and finish https://www.huf-haus.com/en-uk/ Try and get a UK mortgage lender to lend has proved to be a challenge. Even with a loan of less than 30% of its formal value some lenders didn’t want to know. Why? Purely down to the fact that it is an unusual build, and relatively rare house type here in the UK and some of the materials do not adhere to UK standards. Much of this is laughable of course and the quality is far superior to most UK build homes as German standards are at a higher level.
My Huf Haus point is merely to demonstrate the resistance by the high percentage of UK mortgage lenders to lend on something that is not the perceived norm and modular build fits this description. Lenders must embrace this ‘new’ modular system with enthusiasm and appreciate that much of UK building will be of this type. Lend now and become the go to lender. Seize the opportunity ahead of your competition.
Don’t Resist Change, Embrace It!
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