{"id":11861,"date":"2025-02-03T14:08:09","date_gmt":"2025-02-03T14:08:09","guid":{"rendered":"https:\/\/www.merronbrook.co.uk\/news\/?p=11861"},"modified":"2025-02-03T14:08:09","modified_gmt":"2025-02-03T14:08:09","slug":"timbers-growth-in-uk-construction-and-the-evolving-landscape-of-insurance","status":"publish","type":"post","link":"https:\/\/www.merronbrook.co.uk\/news\/timbers-growth-in-uk-construction-and-the-evolving-landscape-of-insurance\/","title":{"rendered":"Sustainable solution: Timber’s growth in UK construction and the evolving landscape of insurance"},"content":{"rendered":"

Timber construction is gaining momentum in the UK as organisations aim to meet net-zero carbon targets. Timber is valued for its sustainability and renewability, contributing to carbon reduction in construction.<\/p>\n

However, educating the insurance industry about the safety of timber is a key focus \u2013 uniting the timber industry, architects, engineers and government. As the construction industry embraces sustainable materials and modern methods of construction (MMC) \u2013 particularly with the incoming Future Homes Standard \u2013 insurers must move with the times.<\/p>\n

Insurer engagement: Positive signs, but there is work still to be done<\/strong><\/p>\n

The hugely successful Mass Timber Insurance Playbook, originally launched in May 2023, has recently received backing from the Association of British Insurers (ABI) \u2013 a sign of the positive impact of education to improve insurer understanding of timber.<\/p>\n

However, a new PWC report, Emerging Trends in Real Estate 2025<\/a><\/u>, takes a much more cautious tone, emphasising that \u201cMany insurers lack a deep understanding of how timber buildings behave in response to risks such as fire, flooding or water leakage.\u201d<\/p>\n

Recognising timber\u2019s growing role in sustainable construction, the report highlights that insurance premiums for timber have reduced: \u201cNot so long ago, the insurance premium for a commercial timber building was up to eight times higher than for a traditional structure, but more recently it has come down to two- or threefold.\u201d<\/em><\/p>\n

But the report also underlines that continued education is key to helping insurers embrace timber’s potential, alongside its vital role as a pioneering material in the future of sustainable construction. \u201cOne interviewee sees timber as just the beginning of the necessary innovation in real estate. Over the next 25 years, we need a much wider scale transition in the types of materials that we\u2019re using in buildings. But that\u2019s going to throw up more and more insurance issues.\u201d<\/em><\/p>\n

Structural timber usage is growing<\/strong><\/p>\n

Structural timber has an extensive history, while also delivering exciting innovation. The whole span of timber products has a role to play, from more recently adopted products such as mass timber to established solutions like timber frame.<\/p>\n

Increased adoption is particularly evident in residential construction, where housebuilders and architects are recognising the opportunities. Primarily used in low- to mid-rise residential projects, timber is also finding its place in commercial and high-rise buildings.<\/p>\n

For example, Bellway Homes<\/a><\/u> announced this year that it is aiming to increase timber frame use from 12% of its homes in 2024, to around 30% of housing output by 2030. Growing adoption by housebuilders and architects highlights timber\u2019s sustainability and efficiency, offering speed, affordability, and environmental benefits.<\/p>\n

Shifting insurers’ appetite to timber \u2013 the role of collaboration and government support<\/strong><\/p>\n

Despite how common timber-framed homes are in the UK, and their long history, insurers still class them as being constructed from non-standard building materials. Recognising timber’s sustainability advantage, insurers will need to support the inevitable shift to more sustainable materials like timber and embrace new materials innovation to help mitigate the risk of climate change.<\/p>\n

Government support, outlined in the Timber in Construction Roadmap<\/a><\/u>, emphasises the importance of increasing collaboration with insurers, lenders, and warranty providers, fostering a more favourable environment for timber adoption. Collaborative efforts, like the ASBP Mass Timber Playbook<\/a><\/u>, are playing a key role in helping address misconceptions. The recent endorsement<\/a><\/u> of the Playbook from the ABI, the Fire Protection Association (FPA), and RISCAuthority signals that this shift is well under way. Updated guidance from industry bodies, such as RICS, along with performance data and insights from the Structural Timber Association (STA), is also helping shift insurer <\/p>\n

The timber frame industry\u2019s commitment to providing an unparalleled offering<\/strong><\/p>\n

Changing the narrative around timber construction is critical to unlocking its full potential. The STA is working hard to reinforce the message that, in contrast to masonry builds, the timber frame industry is committed to providing unparalleled offerings, including:<\/p>\n