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Boosting Ireland’s Housing Supply: Modern Methods of Construction
- September 2024
- Report number: 166
- Topics: Housing
- Types: NESC Council Reports
The need to boost housing supply has led Irish policy-makers, the construction sector and housing market interests to become increasingly focused on modern methods of construction (MMC). As an umbrella term, ‘MMC’ refers to technological advances, new product developments and building systems being delivered through increased digitalisation and emerging technologies. Materials and systems used in buildings must comply with the Building regulations and be fit for their intended use and conditions in which they are to be used. The distinct characteristic of MMC is the offsite manufacture (OSM) of buildings and their components in a factory setting and their follow-on transportation, onsite assembly and fabrication.
This report investigates the potential of MMC to significantly boost housing supply. It highlights progress under the MMC roadmap, an important and ambitious State policy designed to achieve greater adoption of MMC, which is of a high quality and complies with Building Regulations, in public housing delivery and in the housing system more widely.
Drawing on primary research, investigation and dialogue among key stakeholders, the report examines the benefits and challenges associated with MMC. It finds that greater adoption of MMC for residential development can be a ‘game changer’ for the Irish housing system, as it can drive higher productivity gains, substantially increase housing supply, and help meet the environmental goal of decarbonising housing – both new and existing stock.
Key findings in the report:
- MMC can boost Ireland’s new housing supply and help meet climate targets through more sustainable use and circular re-use of materials in construction;
- Greater adoption of MMC can lead to higher productivity gains in Irish homebuilding;
- Ireland’s MMC industry is ready, willing, and able to increase housing supply and accelerate delivery; and,
- Increased use of MMC in homebuilding helps meet Ireland’s environmental goal of decarbonising housing delivery.
This report identifies three developmental opportunities that can deliver positive transformation and result in a more productive, cost-effective and environmentally sustainable construction sector in Ireland:
- Expand the use of MMC by established Irish homebuilders to capture its productivity and environmental benefits, especially for timber-based MMC.
- Increase inward investment by international MMC companies.
- Grow Irish MMC businesses to supply both domestic and export markets
And finally, it identifies six lines of action to encourage greater adoption and use of MMC in housing among producers and to promote acceptance among users:
- Institutional leadership: Working through more resourced existing structures, develop new MMC initiatives to address impediments to greater adoption in housing supply and renovation; reinforce and strengthen increased supply pipelines of sufficient scale, particularly social and affordable housing; and enable greater State and market collaboration on critical development issues such as standards, housing typology, finance, transport and logistics, and skills and education.
- Standards and innovation: Use the Government’s Capital Works Management Framework and procurement process to shape greater housing market adoption of MMC; and research the potential role of a collaborative approach between industry and research bodies for testing and performance requirements for innovative systems.
- Targets: Increase the targets and funding for new public housing using MMC under an expanded Social Housing Accelerated Delivery Programme (ADP);binding targets around reduced carbon footprints; and assess the investment and development of the human resources required to meet revised targets among public housing delivery partners. 1 set more
- Innovative finance: Consider the creation of a dedicated forward-funding arrangement for MMC in housing to lever increased investment in offsite manufacturing (OSM); guide environmental, social, and governance (ESG) investment towards MMC in housing using fiscal instruments and mechanisms; and expand the role of Ireland’s credit union sector to deliver a dedicated aggregator structure to pool financing from Approved Housing Bodies (AHBs) for new MMC housing developments.
- New employment opportunities: Provide additional supports and incentives to facilitate further upskilling for MMC roles; increase co-ordination and additional resourcing of organisations’ training programmes; and develop and fund more dedicated apprenticeship and internship options for MMC in housing.
- Positive promotion: Showcase examples of quality MMC housing typologies, particularly mid- and high-rise apartments with efficient circulation including deck-access; deliver new promotional materials to challenge stigmas attributed to prefabrication; make clear that temporary use does not mean poor quality; and, request study and report by Dublin City Council on recent ‘volumetric’ housing schemes in Dublin 8 and 20, where the reception to them is considered to be positive.



