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Modular construction companies gain lender confidence with BOPAS accreditation; scheme to launch in Australia soon.
UK-based bank, Hampshire Trust Bank (HTB), has joined the growing list of lenders recognising the value of the UK’s Buildoffsite Property Assurance Scheme (BOPAS). BOPAS guarantees the integrity of properties constructed using modern methods of construction (MMC) for a minimum of 60 years, providing assurance to lenders, developers, and homeowners.
HTB has expanded its specialist buy-to-let criteria to support first-time landlords and those investing in modern method of construction (MMC) properties. Unlike many lenders with specific lists of acceptable MMC types, HTB will consider any MMC type as long as it is approved by BOPAS. This change was driven by feedback from intermediaries who highlighted the affordability challenges for landlords and the need to improve the quality of Britain’s housing.
There are seven categories of MMC in the UK:
Category 1: Volumetric;
Category 2: Structural Panelised;
Category 3: Lightweight Steel and Timber Frame;
Category 4: Additive Manufacturing;
Category 5: Components/Assemblies;
Category 6: Product-Led Improvements; and
Category 7: Site-Led Improvements.
BOPAS provides independent third-party accreditation for MMC providers and their construction systems, assuring lenders, developers, and homeowners of the durability and integrity of accredited properties. The scheme was developed to address the perceived risks associated with innovative construction methods and is recognised by principal mortgage lenders.
BOPAS was jointly developed by Buildoffsite, The Royal Institution of Chartered Surveyors (RICS), LRQA (formerly part of Lloyd’s Register), and BLP TS (insurance company), in consultation with the Council of Mortgage Lenders (CML) and the Building Societies Association (BSA). The scheme has been operational since 2013 and serves as a key criterion for lending against MMC systems by most UK banks and building societies.
The current UK Affordable Homes Programme, which runs until 2026, targets that 25% of homes delivered through strategic partnerships must be built using MMC, and BOPAS accreditation is considered a key element of achieving these targets.
The following UK lenders recognise BOPAS: Lloyds Banking Group, NatWest Bank, Barclays Bank, Nationwide, Virgin Money, Bank of Ireland, Aldermore Bank, Trustee Savings Bank, Yorkshire Building Society, Leeds Building Society, Cambridge Building Society, Saffron Building Society, Ipswich Building Society, Melton Mowbray Building Society, Tipton and Coseley Building Society, Bath Building Society, Chorley and District Building Society, and Ecology Building Society.
According to industry sources, a BOPAS-aligned scheme will soon be available to Australian modular builders and lending institutions.
