The term modular building construction has grown in popularity in recent years, with many seeing it as a solution to the UK’s housing shortage and skills gap. But what does it actually mean, how do modular building systems work, and how do they compare to alternatives such as panelised solutions like H+H’s Celcon Vertical Wall Panels (VWPs)?
This blog will explain the processes, weigh up the advantages and disadvantages of each approach, and explore why panelised systems may offer housebuilders greater flexibility and fewer risks than modular home builders can typically deliver.
What is modular building construction?
At its simplest, modular building construction is the process of manufacturing three-dimensional building modules in a factory before transporting them to site. These volumetric modules are then craned into place and connected to create a complete building.
• Factory production – whole rooms or units are built in a controlled environment.
• Transport – finished modules are delivered on lorries.
• Assembly – modules are craned into position and joined together to form the structure.
This approach is sometimes referred to as “prefabrication” and is promoted as a way of reducing construction times and increasing quality by moving work offsite.
Benefits of modular building systems
Modular building systems can deliver certain benefits when conditions are right:
• Speed – entire homes can be installed on site in days.
• Quality control – factory settings can help ensure consistency.
• Reduced site labour – less reliance on skilled trades on site.
Disadvantages of modular building systems
However, research and experience have highlighted significant drawbacks that make reliance on modular home builders less attractive:
• Transport limitations – modules are large and expensive to move. Deliveries can be delayed or restricted by road access.
• Design rigidity – once modules are manufactured, changes are difficult or impossible.
• Site conditions – access makes many plots unsuitable.
• High upfront cost – requires early, significant investment in manufacturing capacity.
• Business fragility – many modular providers have struggled financially, leaving projects incomplete.
For further information on these risks, read our blogs on the unintended consequences of modular construction and the decline of volumetric modular MMC.
How panelised systems compare
Panelised systems such as Celcon Vertical Wall Panels (VWPs) offer an alternative that retains many of the advantages of offsite construction while avoiding the disadvantages of modular building systems.
With VWPs:
• Panels are manufactured offsite in a factory environment.
• Transport is simple – panels are lightweight and delivered flat.
• Assembly is rapid – panels are craned into position to form the structural shell of a building.
• Flexibility is built in – design adjustments can be made more easily than with volumetric modules.
Advantages of panelised systems over modular
Compared to modular building construction, panelised systems like VWPs offer clear benefits:
• Practical logistics – smaller, lighter panels are easier and cheaper to transport.
• Design flexibility – changes can be made during construction without scrapping entire modules.
• Lower cost and risk – avoids the huge capital investment required for volumetric factories.
• Resilience – reduces exposure to supply-chain shocks and factory shutdowns.
• Proven material – aircrete panels provide excellent thermal and acoustic performance.
Which approach is right for the future?
While modular home builders have often been hailed as the solution, real-world performance has revealed the fragility of the approach. In contrast, panelised systems like Celcon Vertical Wall Panels combine the efficiency of offsite manufacture with the practicality housebuilders need.
They represent a true Modern Method of Construction (MMC) that can be scaled accordingly for different sized sites. To learn more about the wider MMC landscape, read our guide: What are Modern Methods of Construction?.
Modular building construction is a bold idea that has achieved some successes but also faced major obstacles. While modular building systems offer speed and factory quality, they bring significant challenges in cost, logistics and flexibility.
Panelised solutions like Celcon Vertical Wall Panels deliver many of the same benefits, with fewer risks and greater adaptability. For housebuilders looking for certainty in today’s housing market, panelised systems may provide the smarter path forward.