The body, which represents UK manufacturers, called for planning permission on homes of this type to be fast tracked as they cost 55 per cent less to heat than the average UK home and are built 50 per cent faster than bricks and mortar equivalents.
Modular building can also cut the carbon emissions associated with the construction of new homes by 83 per cent and produce substantially less waste, it added.
The technique typically reduces the amount of transport access needed for building sites, with 80 per cent fewer vehicle movements to sites, which cuts local disruption and pollution.
Factory engineering means modular homes can be built to consistently high sustainability standards saving £800 a year in energy costs for a typical three-bedroom family home.
Make UK said that record amounts of research and development funding are currently spent on modular construction – accounting for 30 per cent of R&D across the whole construction sector.