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Abstract

The focus of this research is to assess the public perception of non-traditionally constructed housing in the United Kingdom. Further it will explore what, if any, restrictions and additional requirements financial institutions place upon securing a mortgage on of this type of property.
Research has shown that there are several papers and articles on the perception of non-traditional constructed housing from a house builders’ perspective, although it appears little has been done on the consumer perception.
There are anecdotal opinions that securing a mortgage on houses built using non-traditional methods are not viewed upon favourably by financial institutions. These opinions could influence consumer decisions without any factual evidence to support these beliefs.
The report Overcoming Client and Market Resistance to Prefabrication and Standardisation in Housing (Edge et al., 2002) found that there is consumer resistance to prefabricated housing, with an abiding image of post-war emergency housing. This research will look to establish if those findings are still true and relevant 21 years later, considering improvements in non-traditional construction methods and a younger generation of people looking to purchase homes.
This research project conducted a survey of the publics’ perceptions and understanding on nontraditionally constructed via a questionnaire which is primary data. Secondary data was collected by conducting a literature review and conducting semi-structure interviews with the top 10 UK mortgage lenders. These interviews were to ascertain if there are any further requirements and restrictions placed on consumers attempting to secure a mortgage on a property of non-traditional construction. The researcher evaluated the results of this investigation to either support or reject the hypotheses, either partially or in its entirety. The main hypotheses was supported by sub-hypotheses which are shown below:

Hypotheses: Residential properties built using non-traditional methods are less attractive to both home buyers and financial institutions. This is supported by the below sub-hypotheses:

1) Negative connotations exist with the public towards non-traditional constructed residential property who associate them with post war emergency and social housing (Edge, et al. 2002).

2) Financial institutions have specific restrictions or other requirements on borrowers looking to finance a non-traditionally constructed residential property (Mugleston, 2022).

This research has statistically proven that there is a public perception that financial institutions do not treat differing methods the same with regards to their lending criteria. Furthermore, the testing has shown that there are negative perceptions towards non-traditional construction methods and that these perceptions can influence the consumers’ purchasing making decisions.
Through holding interviews with financial institutions, the research has produced an overview of their requirements for securing a mortgage on a non-traditionally constructed property. It has shown that there are extra restrictions and requirements for those looking for a mortgage with certain lenders. Indeed 2 of the lenders spoken to stated that they do accept applications for non-traditional built properties. 5 of the lenders may require additional certification on the property and 1 lender requires the property to be certified by the Buildoffsite property assurance scheme.
It is the conclusion of this research that the main hypotheses can be supported by providing evidence of the sub-hypotheses. 

 

Course: Quantity Surveying - BSc (Hons) - C0150

Date Deposited: 2023-07-13

URI/permalink: https://library.port.ac.uk/dissert/dis14157.html