Deputy prime minister John Prescott’s announcement of £5bn fresh funding to drive forward the government’s affordable housing plans has been welcomed as “excellent” news by the timber frame industry.

Mr Prescott’s funding plan, delivered at the government’s Better Building Summit on October 21, will help pay for more and better quality housing, including for key workers, during the next two years.

The summit also flagged up the importance of the off-site construction sector, including timber frame prefabrication, to help deliver the government’s “Sustainable Communities – Building for the Future” plan.

David Hart, PR and marketing chairman for the UK Timber Frame Association, said: “This latest funding will underpin the already significant growth in the UK timber frame industry and will encourage further and innovative uses of timber frame.”

He said timber frame was the UK leader in the provision of factory-fabricated, off-site construction.

Phil Key, managing director of Pace Timber Systems, said: “I think it’s terrific news, not just for the timber frame industry but also for off-site manufacture.”

Pace has been concentrating on the social housing market during the past four to five years and its long-term strategic partner is builder Wilmott Dixon, reputed to be the country’s top social housing provider. He said other builders were also positioning themselves to fulfil John Prescott’s sustainable communities programme.

Mr Key said Pace expected to launch a hi-tech “next generation” timber frame system by the end of the year to increase off-site prefabrication.