The majority of housebuilders are investing in modular housing (68%) and construction with panels (56%), Lloyds Bank research has found.
Housebuilders are increasingly prioritising investing in these new building techniques in order to increase efficiency and in some cases increase margins.
David Cleary, regional director and national head of housebuilding, Lloyds Bank Commercial Banking, said: “The housebuilding industry remains upbeat despite issues that have weighed down the sector for some time including Brexit uncertainty which is contributing to a skills shortage and inflating the cost of raw materials.
“It is reassuring to see the sector confronting these challenges head on by investing and planning for business growth, prioritising staff training and looking at more innovative new building techniques. This has the potential to boost productivity and, more importantly, increase the pipeline of new homes that the nation badly needs.”