Could Modular Living Be the Future of UK Housing?

Rising costs, limited supply and changing lifestyles are forcing the UK to rethink what “home” really means, and modular living is quickly moving from niche idea to serious business opportunity.

For years, the traditional housing model has struggled to keep pace. Property prices remain stubbornly high, rents continue climbing, and new-build developments can take years to move from planning approval to completion.

For buyers, renters, landowners and developers alike, frustration is growing.

The big question is no longer simply “How do we build more homes?” but “How do we build smarter ones?”

Across the UK, people are starting to challenge old assumptions. Do we really need bigger homes, or just better-designed spaces? Does every development need years of disruption and heavy infrastructure? And can modern living work beyond the limits of traditional bricks and mortar?

The answer, increasingly, looks like yes.

A new wave of design-led modular living is stepping into the spotlight, offering faster, more flexible alternatives to conventional construction.

Capsule Whales is one of the businesses helping drive that shift. The company develops compact modular capsule units designed for both residential and hospitality use, offering an approach that prioritises speed, flexibility and smart design over sheer size.

Unlike traditional housing developments, modular units can be delivered and installed far more quickly. Their smaller footprint and efficient layouts make them suitable for everything from private garden spaces and additional land use to boutique resorts, glamping sites and short-term rental investments.

This is particularly attractive at a time when tourism and hospitality are seeing rising demand for unique, design-focused accommodation, especially in natural and remote locations.

Founder Andrius Milašius believes the change is being driven by both practicality and mindset.

“There is a growing frustration with how slow and restrictive the traditional system can be,” he explained to That's Business. 

“At the same time, people are realising they don’t necessarily need more space, they need better, smarter and more flexible space.”

One of the biggest game changers is off-grid capability.

By combining modular units with renewable energy, battery storage, water generation, recycling systems and independent waste solutions, developers can create functional living spaces without relying heavily on existing infrastructure.

That opens up huge opportunities for underused land, eco-tourism projects and scalable housing concepts in locations once considered impractical.

For landowners, it also creates a fresh route to income generation, with faster deployment, phased expansion and lower upfront commitment than major construction projects.

As consumer demand shifts towards privacy, nature, experience and design, modular living is no longer just an interesting concept.

It is becoming a serious business model.

The future of housing may not be bigger.

It may simply be smarter.

http://www.capsulewhales.com

Over 700 homes set to benefit from reduced energy bills

Residents at the Reed Mere estate in Immingham and the Willows estate in Grimsby are set to benefit from lower energy bills and more comfortable homes thanks to external wall insulation (EWI) funded by the Social Housing Decarbonisation Fund (SHDF) and Lincolnshire Housing Partnership (LHP).

The project will be managed and delivered by E.ON, with Gateshead-based Thrift Energy, an experienced installer of energy saving retrofit improvements.

Installations begin on the first homes in Immingham this month as phase 1 begins, with up to 291 Reed Mere estate properties scheduled for completion by the end of March next year, 2024. The EWI improvements for up to 733 properties across both estates will be completed by the end of March 2025.

The project marks a commitment from LHP to help tackle fuel poverty amongst residents by reducing the amount of heating they require. The EWI installation will help to prevent heat loss through the walls of each property, driving down bills for residents. 

All properties will also receive ventilation upgrades, further increasing the comfort of the home whilst reducing risks associated with poor air quality, damp, and mould growth. Besides providing a warmer and more energy efficient living environment, the improvements will also reduce carbon emissions, and all work will be carried out by Thrift Energy’s experienced teams while residents remain able to stay in their homes.

Daniel Wyer, Corporate Head of Asset Management at Lincolnshire Housing Partnership explains: “The SHDF was made available to improve social housing properties currently below Energy Performance Certificate (EPC) rating ‘C’ to bring homes up to that standard. 

"We were successful in securing a share of the up to £800 million allocated by the government to support the installation of energy performance measures in social homes in England and are now working with E.ON and Thrift Energy to improve up to 733 local homes.

“The improvements will not only help reduce bills for our residents; they'll also help enhance health and wellbeing by enabling residents to use their heating when they need to and enjoy a warmer, more comfortable home. The project will also provide aesthetic improvements, giving the estates a refreshed look.”

The Reed Mere and Willows projects are two of over 30 sites E.ON will deliver for social housing clients across the UK until 2025 supporting SHDF programmes, as E.ON continues to be market leader for green funding delivery with a demonstrable track record successful programme delivery.

Sarah Farmer, Director of Residential Solutions at E.ON UK, said: “We are committed to helping people reduce their energy use and costs while also taking action to tackle the climate crisis. Insulation is fundamental in helping improve the fabric of our nation’s homes, enabling people to stay warm and well whilst also helping bring down energy use and bills. This project has been a real team effort and we're excited to begin the process of transforming hundreds of local homes.”

EWI involves wrapping each property’s exterior walls in a layer of insulation, which improves thermal performance by increasing airtightness and reducing heat loss. Working on behalf of E.ON, Thrift Energy, a finalist in the National Energy Efficiency Awards Insulation & Fabric Installer category with more than a decade’s experience of EWI projects, has an experienced team ready to start the project.

Thrift Energy’s Commercial Director, Josh Raffo comments: “We have installed EWI improvements for 588 properties in the past year alone, many of them on behalf of E.ON, as part of the first phase of SHDF, but this is by far the largest project we have been involved with.

“Our teams will work closely with LHP and E.ON to ensure that residents are fully aware of the programme and the timetable for work on their property, as well as providing information on EWI, how it is installed and what it will mean for their home. We will provide a complete service, including all scaffolding, installation and finishes, ensuring residents benefit from a home that is warmer, cheaper to run and looks great.”

In the past two years, E.ON has successfully delivered over 80 energy improvement projects, installing over 11,000 energy efficiency measures into homes, including nine successful phase 1 SHDF programmes. According to figures from the Energy Saving Trust, this activity has led to a reduction of more than 12,000 tonnes of CO2 for households nationally, supporting the UK Net Zero target on decarbonising homes.