Modern Methods of Construction in Hexham

Using modern methods of construction to help create affordable retirement communities.

Last updated: 14th January 2022

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Summary

High-quality retirement communities combine the independence of living in your own property, with areas to socialise with like-minded people, and peace of mind thanks to on-site care and support teams, plus a 24/7 emergency call system. While they can help the older generation stay healthy and active, high construction costs have made these communities a limited option, not available in many areas of the country. McCarthy Stone, the UK’s leading developer and manager of retirement communities, has partnered with Sigmat to use its Light Gauge Steel Framing offsite 'type 2' structural solution across 40 sites, including a pilot scheme in Hexham. This approach can deliver retirement communities faster and at a lower cost, increasing the availability and affordability of this form of retirement living.

Innovation type: Kit of parts, Manufacturing, Offsite
Organisation type: Private sector client

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Project pioneers

John Tonkiss became Chief Executive at McCarthy Stone, the UK’s leading developer and manager of retirement communities, in September 2018. Before joining McCarthy Stone, he was Chief Operating Officer at Unite, the leading provider of student accommodation in the UK. At Unite, John had pioneered modern methods of construction (MMC); launching one of the UK’s first MMC factories to help quickly increase its supply of high-quality student accommodation in the 2000s. Having seen the benefits of MMC, and with a background in automotive production lines before that, John was keen to bring a manufacturing approach to the design and construction of retirement communities. 

The problem

The Office of National Statistics estimates that by 2050 around a quarter of the entire UK population, some 20 million people, will be aged 65 and over – an increase from approximately one in five, or 13 million, in 2019. Those aged 85 or over will rise from 1.6 million to 3 million over this period.
The pandemic has revealed the extent to which housing conditions can have an impact on the health of this large and growing section of the population. As of January 2021, 90% of all COVID-19 deaths in the UK were people aged 65 and almost one-in-three (28 per cent) of deaths in the UK where coronavirus is mentioned on the death certificate occurred in a care home. A report by The Health Foundation, an independent charity promoting better health and healthcare, found that housing conditions such as overcrowding and high density fuelled the spread of COVID-19, with people having to spend more time in homes that are overcrowded, damp or unsafe.
Despite this, the housing choices for those in retirement are limited in terms of accessibility and adaptability. While around 750,000 units have ever been built; around three-quarters of these are for social rent for the most vulnerable. There are only 80,000 retirement community properties available that have onsite care provision, just 0.5% of total UK housing supply. 

Vision

Embracing modern methods of construction (MMC) can reduce the cost of building retirement communities with homes tailor-made for the over 60s. This combined with the faster construction times MMC enables will increase the availability of this form of retirement living at an affordable price for the majority not served by the social rent end of the market.
More consistent build quality; alongside on-site support, companionship, and care when needed; can play an important role in supporting occupant health. A healthier and more active older generation helps to support socio-economic growth: through reduced healthcare costs; acting as carers to their loved ones, which eases pressures and costs for social services; supporting local high streets; and volunteering and other civic activities.
McCarthy Stone has already committed to trialling MMC schemes in all of its divisions across the country with a target of producing 50% of its developments with MMC by 2024. McCarthy Stone currently has 40 sites allocated in its pipeline to be built using this MMC solution in full.

Key Insight

When John became CEO in 2018, McCarthy Stone was facing rising build costs, a lack of local labour supply, and a need to build more sustainably. Historically, the company had built using largely brick and block processes. Given his prior experience using modern methods of construction (MMC) at Unite, to quickly increase its supply of high-quality student accommodation, John was convinced it could help McCarthy Stone address these challenges in order to increase the availability of homes with care at an affordable price for the majority.

First step

John brought in a new technical team, including Peter Forsyth as Group Technical Director and Paul Russell as Head of Innovation.
Following a detailed selection process, McCarthy Stone announced a partnership with Sigmat to use its unique modern method of construction. As a result its eco-friendly and dynamic Light Gauge Steel Framing (LGSF) offsite structural solution was rolled out in Hexham FY21, and across five of McCarthy Stone’s sites in FY22 and FY23.
This partnership saw McCarthy Stone become one of the first national retirement community developers to back the Government’s agenda of increasing housing built offsite and make a major commitment to this type of manufacturing.

Barrier

Building retirement communities that combine independent living with social areas and onsite care and support services, has been expensive; with high construction costs to fund the provision of large communal spaces, high service charges, and high planning taxes. Operators have typically focused on the social rented end of the market, funded by local and national government, or developed high-end luxury schemes to cover these costs. As a result, this form of housing has remained unaffordable to the majority.  

Process innovation

Hewson Court, a 23 one-bedroom and 20 two-bedroom apartment developmenton in Hexham, was one of the first McCarthy Stone retirement communities to be built using Sigmat's innovative Light Gauge Steel Framing (LGSF).
A frame structure for the building was manufactured offsite, in a controlled factory environment, arriving onsite as a plug-and-play assembly using steel frame pannels.
LGSF can deliver 20% faster construction compared to traditional building methods.
Manufacturing in a controlled factory environment provides accuracy and precision of up to 1mm per structural storey height, reducing defects and the need for rework.
LGSF also has sustainability benefits; considerably reducing the production of onsite waste material, with an up to 20% reduction in embodied carbon in building fabric.
The frames and panels are delivered for each storey when needed, avoiding delays and the need for onsite storage. Once the roof is on, this system provides a dry environment for plastering and other interior work, which isn't true with brick and block structures where water can soak through.
This approach can deliver retirement communities at a 10%-15% lower cost than traditional methods, helping McCarthy Stone increase the availability and affordability of this form of retirement living.  

Collaborators

Sigmat is the leading European manufacturer of cold-rolled steel components and panelised structural steel frames. Its innovative approach allows buildings to be designed, manufactured, and assembled in Light Gauge Steel Framing (LGSF).
The National House Building Council (NHBC) have also awarded McCarthy Stone and Sigmat's LGSF apartment system an NHBC Accepts Accreditation. This is the fast-track route for acceptance of modern methods of construction products and systems for use in homes covered by all NHBC warranty and insurance policies, equivalent to around 70-80% of the new homes built in the UK each year. This has allowed the partnership to continue to move forwards with increased assurance and certainty.

  • McCarthy Stone
  • NHBC
  • Sigmat

Long Term Vision

Embracing modern methods of construction (MMC) can reduce the cost of building retirement communities with homes tailor-made for the over 60s. This combined with the faster construction times MMC enables will increase the availability of this form of retirement living, at an affordable price for the majority not served by the social rent end of the market.
McCarthy Stone has already committed to trialling MMC schemes in all of its divisions across the country with a target to produce 50% of its developments with MMC by 2024.

Human Stories

The pandemic has revealed the extent to which housing conditions can have an impact on the health of the large and growing number of people aged 65 and over in the UK. As of January 2021, 90% of all COVID-19 deaths in the UK were people aged 65 and almost one-in-three (28 per cent) of deaths in the UK where coronavirus is mentioned on the death certificate occurred in a care home. A report by The Health Foundation, an independent charity promoting better health and healthcare, found that housing conditions such as overcrowding and high density fuelled the spread of COVID-19, with people having to spend more time in homes that are overcrowded, damp or unsafe.
Embracing modern methods of construction (MMC) can reduce the cost of building retirement communities with homes tailor-made for the over 60s. More consistent build quality; alongside on-site support, companionship, and care when needed; can play an important role in supporting occupant health.
A healthier and more active older generation helps to support socio-economic growth: through reduced healthcare costs; acting as carers to their loved ones, which eases pressures and costs for social services; supporting local high streets; and volunteering and other civic activities.

Powerful Processes

Sigmat's innovative Light Gauge Steel Framing (LGSF) system is manufactured offsite, in a controlled factory environment, arriving onsite as a plug-and-play assembly using steel frame pannels.
Manufacturing in a controlled factory environment provides accuracy and precision of up to 1mm per structural storey height, reducing defects and the need for rework. The frames and panels are delivered for each storey when needed, avoiding delays and the need for onsite storage. Once the roof is on, this system provides a dry environment for plastering and other interior work, which isn't true with brick and block structures where water can soak through.
This approach can deliver retirement communities at a 10%-15% lower cost than traditional methods, helping McCarthy Stone provide this form of retirement living at an affordable price for the majority.  

Fascinating Facts

The Office of National Statistics estimates that by 2050 around a quarter of the entire UK population, some 20 million people, will be aged 65 and over – an increase from approximately one in five, or 13 million, in 2019. Those aged 85 or over will rise from 1.6 million to 3 million over this period.
As of January 2021, 90% of all COVID-19 deaths in the UK were people aged 65 and almost one-in-three (28 per cent) of deaths in the UK where coronavirus is mentioned on the death certificate occurred in a care home.
This older generation, play an important role in supporting socio-economic growth: through reduced healthcare costs; acting as carers to their loved ones, which eases pressures and costs for social services; supporting local high streets; and volunteering and other civic activities. People aged between 65 and 74 are the most likely people in the UK to volunteer regularly, with the National Council for Voluntary Organisations noting that more than a quarter (28%) of those aged between 65 and 74 volunteers once a month.
Modern methods of construction (MMC) such as Sigmat's Light Gauge Steel Framing (LGSF) can reduce the cost of building retirement communities with homes tailor-made for the over 60s. Currently, there are just 70,000 retirement community homes across the UK, just 2% of the UK housing supply.
LGSF can deliver 20% faster construction compared to traditional building methods.
Manufacturing in a controlled factory environment provides accuracy and precision of up to 1mm per structural storey height, reducing defects and the need for rework.
LGSF also has sustainability benefits, with an up to 20% reduction in embodied carbon in building fabric.
This approach can deliver retirement communities at a 10%-15% lower cost than traditional methods.
McCarthy Stone is aiming to produce 50% of its developments with MMC by 2024.

Benefits

Cost
This approach can deliver retirement communities at a 10%-15% lower cost, enabling McCarthy Stone to increase the availability and affordability of this form of retirement living.

Emissions
McCarthy Stone’s MMC plan supports the UK Government’s Heat and Buildings Strategy to reduce carbon emissions, with each new retirement community built using MMC seeing an improvement in building performance, fuel usage and thermal transmittance, in comparison to those built using traditional methods. 

Time
LGSF can deliver 20% faster construction compared to traditional building methods, whilst reducing dependence on the availability of local 'wet-trade' labour.
The frames and panels are delivered for each storey when needed, avoiding delays and the need for onsite storage. Once the roof is on, this system provides a dry environment for plastering and other interior work, which isn't true with brick and block structures where water can soak through.