Developers have welcomed an Albanese government push to make financing easier for homes built from prefabricated parts, but warn they are not always cheaper and are no good if owners want to live somewhere that has individuality.

Treasurer Jim Chalmers and Industry Minister Ed Husic on Friday announced that banks, superannuation funds and other institutional investors would address barriers to financing for prefabricated construction. In addition, a new voluntary certification system would make it easier for prefab and modular homes to get regulatory approval.