Solutions for housing’s biggest challenges

Delivering affordable, safe, and sustainable housing has never been more important or difficult. The government has committed to building 1.5 million more homes by the end of this parliament, with Deputy Prime Minister Angela Rayner saying affordable housing is the ‘beating heart’ of its plans and asking the sector to restart their development programmes at the recent Social Housing Annual Conference. This is fantastic and much needed, but the industry faces significant and mounting challenges to meet this demand, from new regulations to decarbonisation goals and cost pressures.

At our latest Digital Forum, we brought together housing leaders to discuss how digital strategies can help us address these issues and transform housing design, delivery, and management. Our expert panel included Tom Oliver, Director of Development Programme and Partnerships for Peabody; Sheldon Ferguson, Policy Lead for Housing Standards at the Ministry of Housing, Communities and Local Government (MHCLG); Michelle Hannah, Director at Cast Consultancy; and Ami Davis, Strategic Organisational Capability Director at Magna Housing. Together, we explored how innovation and collaboration can address the sector’s most pressing challenges.

Navigating through crisis

The Forum addressed the critical challenges facing the housing sector today. Providers are grappling with a ‘triple whammy’ of tightening regulations, decarbonisation goals, and escalating costs, which have left many unable to balance maintaining existing stock with building new homes. Maintenance and repair costs are rising, with one speaker saying some are spending £1million per day on their existing stock. But when providers invest in these, there isn’t an uplift in rents they can charge as revenue is limited by regulations, creating a financial squeeze that threatens housing delivery across the UK.

The impact of these pressures has been stark, with affordable housing stocks plummeting. Providers are being forced to prioritise investment in safety and sustainability, often at the expense of new developments.

"It's very clear at the moment that we are investing in our existing homes, and that's where we are focusing the majority of our investment, albeit that we have got a pipeline of units on site. The question is, why can't we do both? Tom Oliver, Director of Development Programme and Partnerships, Peabody"

Tom Oliver

Director of Development Programme and Partnerships, Peabody

Data as a tool for transformation

Data was a key focus of the discussion, with the panel agreeing that it holds the potential to address some of the sector’s most pressing issues. From optimising investment decisions to improving customer service, reliable data is crucial.

However, we face significant challenges in achieving this. Poor data quality and a lack of interoperability between systems are creating inefficiencies and missed opportunities, The financial cost of these is incredibly high, with Sheldon saying that MHCLG research found the cost of data inefficiencies within housing services in England alone could be as high as £397 million. Worse still, fragmented systems can lead to critical oversights, impacting the lives of tenants such as the recent case in Rochdale that prompted Awaab’s law.,

The speakers stressed the importance of adopting unified data standards, improving interoperability, and building the capability to manage data effectively. By addressing these issues, housing providers can harness the potential of data to deliver smarter, more efficient services.

"We've been talking with social housing policy. They've seen the value of data standards and how to improve housing quality."

Sheldon Ferguson

Policy Lead for Housing Standards, MHCLG

Innovating housing delivery

Modern Methods of Construction (MMC) emerged as a promising solution to housing delivery challenges. MMC can reduce waste, address skills shortages, and optimise costs, making it a critical tool for the future of housing.

Examples shared during the forum highlighted how MMC is already being used to improve efficiency and sustainability in housing projects. By embracing pre-manufactured value (PMV) and leveraging factory-built components, housing providers can overcome barriers such as difficult site access and limited local resources.

The panel spotlighted the transformative potential of MMC, emphasising its integration with advanced digital tools like artificial intelligence (AI) and building information modelling (BIM) to revolutionise housing design and delivery.

A key theme around MMC was that data and evidence are crucial to justify and scale the transition to off-site construction. Organisations need to see clear metrics around cost predictability, waste reduction and efficiency to demonstrate its value. CAST is deploying an innovative new approach in this area to show how projects with a higher PMV perform better under these metrics.

The need for collaboration

A recurring theme throughout the discussion was the need for greater collaboration across the sector. Providers, councils, and suppliers must work together to share knowledge, standardise practices, and innovate.

Breaking down silos within and between organisations is essential for tackling systemic barriers. Shared patterns, common data standards, and collaborative approaches to technology adoption can create efficiencies and amplify the sector’s collective impact.

"I think there are lots of small pockets of people doing really good things in terms of collaborating and sharing knowledge, the challenge is you don't know who's doing what bit"

Michelle Hannah

Director at CAST Consultancy

The speakers highlighted the key role of partnerships with academia and local institutions. By working with universities and colleges, housing providers can help develop the skills needed to meet future housing demands while fostering innovation. One example was the work being done with Loughborough University and PhD students on researching the customer experience in MMC homes. Examples were also shared of how working with digital partners can help providers think more about collaborating with others.

"TPXimpact introduced the concept of shift zero, which is having the capabilities for transformation. And that's really where we are now in terms of thinking through, what are the partnerships and collaborations, who else is in this space trying to solve these challenges?"

Ami Davis

Strategic Organisational Capability Director, Magna Housing

A people-centred approach

While digital tools and data are essential for transformation, this event underscored that housing must remain focused on people. Tenants’ needs should be at the heart of service design, with digital innovations enhancing—not replacing—user-centred services.

Housing providers must go beyond financial considerations to understand what their communities truly need. Incorporating social impact metrics into decision-making can help ensure that housing projects deliver real value to the people and places they serve.

Pushing the sector forward

This thought-provoking gathering really highlighted how, while the housing sector faces significant challenges, it is also at a pivotal moment for transformation. By embracing data, digital tools, and innovative construction methods, housing providers can address today’s crises while building a sustainable future.

Collaboration and a commitment to shared goals will be essential for success. By working together, housing providers can leverage their collective knowledge and resources to create a sector that delivers better outcomes for all.

If you want to learn more about how we think about building the housing of the future, visit our team page or get in touch.

Interested in getting involved in our next Digital Forum? You can register your interest in our upcoming events now: https://pages.tpximpact.com/en-gb/digital-forum