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New building methods bring fears over value

Huge demand for new affordable homes and a shortage of conventional building skills are adding to the drive to use non-traditional construction methods, according to research by the Council of Mortgage Lenders.

The CML says although lenders are taking a positive approach to new techniques, they are concerned about whether these buildings hold their value in the long term.

It sees this as an important issue as a number of commentators have identified a crucial role of prefabricated housing for key workers in areas such as London and the South-east, where prices have risen rapidly in recent years.

The CML&#39s says the UK has a long history of innovation in housebuilding, extending from the First World War, including precast concrete and timber-framed houses, but this has had a varying degree of success.

Deputy director general Peter Williams says: “Lenders are taking a positive approach to new building techniques but a central issue for them will continue to be whether a building holds its value in the long term. Lenders need information both about new developments and older buildings.”

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