Housebuilder Berkeley plans to produce the first modular homes from a new factory later this year.
Plans for a factory in Northfleet, Kent First announced in December 2017 We started a test run last year. The company confirmed in its full-year earnings this morning that the first module will be in production later this year.
When fully operational, it will provide up to 1,000 homes annually. This will account for more than one-third of the current production of about 2,800 units. The company said modular building capabilities could help overcome the industry’s long-term lack of skills and could “constrain” plans to increase Berkeley production. It currently has a pipeline of 7,000 units.
Builders focused on London, Birmingham and the Southeast reported that their pre-tax profit for the year to April 31, 2021 increased from £ 503.7m in the previous year to £ 518.1m. Revenue increased from £ 1.92 billion to £ 2.2 billion. Net cash reached the end of the year at £ 1.1 billion.
The company said it was affected by material shortages in the UK, with construction cost inflation reaching about 4% in early 2021 and almost flat last year. He added that as material lead times increased, the company worked with suppliers to manage supply issues and maintain production levels.
Construction Leadership Council warned Material availability issues can last for months.