Future homes could be built in factories and delivered to site ready to be assembled, according to a report from Homes for Scotland (HfS).

However, the trades body's report stated knowledge and a more detailed understanding on the total costs of this process must be addressed before the confirming this approach is competitive.

The new research was undertaken for the Scottish Government following its challenge to industry to 'transform' the way new homes are built as a means to increase sustainability, boost the rate of supply and create export opportunities.

Homes for Scotland engaged its members in order to assess the industry's awareness, appetite and readiness concerning alternative construction methods such as offsite manufactured systems.

The report found no resistance to alternative methods, with improved quality, sustainability and speed of construction identified as drivers for an increase in the use of offsite construction.

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However, there was a strong perception that offsite construction is more expensive. Concerns with control over programming and the capacity of the supply chain to sharply increase output were also expressed.

The report proposes 11 recommendations that could help address these issues.

Philip Hogg, Chief Executive of Homes for Scotland, said: "With the industry's capacity to increase production in the wake of the economic downturn currently being hampered by shortages in both skills and traditional building materials, this report is very timely and provides a useful baseline from which to explore how the increased use of offsite construction could help overcome these challenges.

"However, any such 'evolution' must be demand-led and supported by a proven business case that also provides the flexibility the private sector require in delivering products to their customers."

Housing Minister Margaret Burgess added: "We are committed to encouraging companies to utilise offsite modern methods of construction due to the number of potential benefits including economic and export opportunities. That is why we commissioned Homes for Scotland to carry out this research and engage with industry to determine their level of interest in adopting these methods.

"We will work with the housing industry in Scotland to encourage them to look at these opportunities. This report from Homes for Scotland showing private house builders' perceptions represents an important step in mainstreaming these techniques."

To view the report, click here

(LM)