A new nationwide survey has been launched to assess how Labour’s first year in government is impacting small and medium-sized (SME) home builders, amid continued pressures on housing delivery, planning delays and scheme viability.
The initiative – a joint effort between Close Brothers Property Finance, the Home Builders Federation (HBF) and Travis Perkins – aims to capture on-the-ground sentiment from SME developers regarding the Government’s early policy agenda, including its planning reforms and wider housing strategy.
Announced at the UK Real Estate Investment & Infrastructure Forum (UKREiiF) in Leeds, the survey forms part of the latest State of Play study, with findings set to inform a report later this summer.
That report is expected to offer a detailed assessment of current challenges facing SME housebuilders and propose policy responses to better support the sector’s role in meeting the Government’s 1.5 million homes target.
FINANCIAL VIABILITY
Respondents are being asked to comment on the financial viability of current schemes, the impact of evolving regulation and tax burdens, access to affordable mortgage finance, and the persistent difficulties in securing timely planning approvals.
The survey also explores the ability of SME developers to secure partners for the delivery of affordable housing units through Section 106 agreements – an issue increasingly flagged as a structural bottleneck in housing completions.
Crucially, the survey will gauge whether sentiment among small builders has improved or deteriorated since Labour came to power, amid efforts by ministers to streamline planning processes and accelerate housing supply.
BUILDING DECLINE
The initiative follows long-running concerns over the shrinking number of SME developers operating in the UK market. While SMEs accounted for around 40% of new homes delivered in the late 1980s, they are now responsible for less than 10% – a decline often attributed to burdensome regulation, land constraints, and limited access to capital.
Industry leaders supporting the initiative argue that revitalising the SME sector is essential to unlocking stalled housing delivery and driving competition across the housebuilding industry.
The anonymous survey, launched at an event hosted by Close Brothers Property Finance and Birketts LLP on 21 May, will remain open until midnight on 10 June.
STATE OF PLAY
Phil Hooper, Chief Executive Officer of Close Brothers Property Finance, says: “The State of Play survey shines a light on the systemic roadblocks facing SME housebuilders.
“It provides invaluable data to advocate for smarter policy, faster delivery, and a bigger role for SMEs in meeting the 1.5 million homes target.
“Close Brothers Property Finance is proud to support this initiative once again.”
COMPLEX AND CHALLENGING
Neil Jefferson, Chief Executive of the HBF, adds: “ Over recent decades, the increasingly complex and challenging operating environment within which home builders have had to operate has resulted in a dramatic fall in the number of SME house builders.
“Smaller builders play a crucial role within our industry and, if the policy environment allows, can make a major contribution towards the ambitious housing targets set by ministers.
“With the Government approaching the end of its first full year in office, this will be a crucial litmus test of how effectively its policies are facilitating SMEs delivering new homes.”
MOUNTING OBSTACLES
And Ben Todd, Managing Director of Travis Perkins Managed Services, says: “SMEs continue to face mounting obstacles – from planning gridlocks to rising materials and labour costs.
“This survey is a vital opportunity to capture their voice at scale, helping policymakers understand the real barriers on the ground.
“By identifying these obstacles we can do our part for bringing about meaningful change for the sector.”
Take the survey HERE.
