Offsite housing across the UK: Building on past success to meet future needs

Off-site housing and modern methods of construction (MMC) have long been part of the UK’s housing story. At LHC Procurement Group (LHCPG), we’ve been championing this approach for years, backing it with technically robust procurement solutions that connect suppliers with clients and create reliable routes to market.

Today we’re running the third iteration of our Modular Buildings framework (MB3) alongside our Off-site Homes framework (NH3). We’ve also launched the Low Carbon Offsite Housing Construction (LCH) Dynamic Purchasing System in the South West, focused on delivering low-carbon homes and giving innovative new entrants the platform they need to succeed.

Credit, Starship Group

LHCPG is proud to be a Gold Standard accredited provider, aligned to the Construction Playbook. This means long-term aggregated demand, outcome-based specifications, transparent performance measures, and strong supplier relationships.

A defining feature is meaningful engagement, the “golden thread” connecting client needs, supplier capability, and framework delivery. Over the last decade, this has given suppliers confidence to invest and given clients confidence to trust delivery. Many of the most successful off-site programmes in the UK owe their progress to these structured frameworks.

Momentum in off-site housing is evolving rather than slowing. Component-led MMC solutions such as timber frame and panelised systems are expanding rapidly, showing real resilience and market appetite.

• England: Adoption is steady, with huge potential as pipelines become clearer.

• Scotland: MMC is already mainstream, with three-quarters of new homes using timber frame.

• Wales: Strong low-carbon ambition is driving opportunity, even amid wider pressures.

The message is clear: when demand is visible and procurement is stable, off-site doesn’t just keep pace, it accelerates.

 That’s why we’re returning to first principles for the next evolution of our frameworks. Our focus:

• Streamlining lotting structures so routes are clearer for both buyers and suppliers.

• Embedding performance-based outcomes, speed, quality, carbon, cost certainty, social value, into every procurement.

• Working with suppliers and regions to generate predictable demand and de-risk investment.

• Merging traditional and modern methods into a unified housing portfolio so off-site is positioned as mainstream, not niche.

  
  

The new Procurement Act 2023 opens the door to more innovative approaches, and we’ll consult widely with the market to make the most of it.

Demand aggregation only works if it’s collaborative. Our central Technical Procurement Office and regional teams lead structured pre-market engagement, but we need the whole sector involved. That’s where partnership with the Offsite Alliance comes in. Together, we can ensure future frameworks are aligned not only with government priorities, but also with the practical realities manufacturers, clients, and contractors face every day. By working together, we can build on what frameworks have achieved, while removing the barriers that have slowed progress.

We’re inviting you to join us in Liverpool on Monday, 8 September, during the CIH and NHF conference week. This is your chance to share experiences, explore challenges, and help shape the next generation of frameworks.

We want to hear from clients, manufacturers, contractors, housing associations, local authorities, and policymakers. Your insights will help ensure that the next iteration of our frameworks reflects both strategic ambition and real-world delivery.

Off-site construction isn’t the whole answer to the UK’s housing challenge, but it’s a vital tool that remains underused. We’ve shown what’s possible. Now it’s time to take the next step: updating and expanding our frameworks so that off-site can play its full part in meeting housing demand across every nation.