Atelier launches framework to finance housing developments built with offsite and modular technology
The specialist lender Atelier has launched a comprehensive lending framework to finance residential property developments built with offsite and modular construction techniques.
The drive marks the first time a major lender has addressed the challenges that SME developers face in financing modular and offsite construction.
Research by Savills predicts that by 2030, 1 in 5 of all new homes will be built using offsite or modular construction. While there is widespread acceptance of the new technologies’ transformative potential, developers wishing to build this way have, until now, been underserved by the development finance market.
The launch of Atelier’s framework comes after the lender completed an industry-wide consultation with the modular and offsite manufacturing community, including real estate professionals and trade bodies such as the NHBC (National House Building Council) and BOPAS (Buildoffsite Property Assurance Scheme).
Atelier has also created a simple guide for SME developers and intermediaries, providing clear lending and eligibility criteria where offsite and modular technology is used.
Atelier’s offsite and modular framework will run in parallel with the Carbonlite Challenge, the pioneering sustainable finance solution it created to incentivise developers to build greener, more sustainable homes by offering highly competitive rates of interest.
Chris Gardner, joint CEO at Atelier, commented: “Everyone agrees offsite construction technology has the potential to transform residential property development. But it’s time for that potential to be turned into reality, and that’s why Atelier is determined to help developers build more homes this way.
“We’ve collaborated across the construction industry, incorporating the expertise of more than 30 leaders in offsite technology to give developers, intermediaries and contractors a clear and practical guide to the opportunities and challenges that these new ways of building offer.
“Above all, we’re working to be the lender of choice for developers who decide offsite is right for them – a trusted, expert partner who understands the technology and can provide reliable finance, a competitive interest rate and ongoing support, right through to the successful completion of their scheme.”
Chris Hall, innovation services manager at NHBC, commented: “The potential benefits of offsite construction are clear; consistent build quality, reduced costs and time on site, and strong sustainability credentials. More developers are considering these modern methods of construction, and that’s why Atelier’s lending framework is so timely. By making it easier for residential developers to incorporate offsite technology into their plans, and by providing the finance and support they need to build their schemes successfully, Atelier is addressing market challenges in a clear and concise way.”
Terry Mundy, BOPAS consultant, added: “For all the good work that has gone into raising industry standards in the design, manufacture and installation of offsite construction systems across the UK, one of the challenges that has proven harder to overcome is reassuring lenders to provide finance for such offsite schemes. By introducing its offsite and modular construction lending framework, Atelier is now raising the bar in the development finance sector, to facilitate the positive shift towards modular and offsite construction.”