Find out what key decision-makers in the sector think about MMC.
Introduction
- What is currently done under MMC – student accommodation and some health, education and residential. Hallmarks of student accommodation which make MMC successful – less need to be flexible, need for volume (annual influx of student), tight timeline so need to agree design in advance, critical delivery dates.
- Interesting from an ESG angle – helps to developers reaching their targets.
- Issues – historic prejudice, lender caution (conservative and putting money into offsite facilities) and end server mortgage finance.
- Divided market – concerns about being last in line when urgency of project is squeezed and you aren’t the largest client (although this can be dealt with in contract drafting). Developers want control and may prefer their own product rather than using third parties.
- Protection for funders could increase the viability using warranties and third party contracts. Stimulation to the market from investors, getting money from government simply to get the market running.
- The model needs to be proven and doesn’t cause long term defects.
