"Our nine-point plan would unlock a wave of sector growth not seen since the 1970s, reversing decades of decline and unlocking the full potential of SME-led delivery"
- Paul Rickard - Pocket Living
Housing delivery in England is near record lows, and volume builders are struggling with delays at the Building Safety Regulator (BSR). In response, a coalition of industry leaders has unveiled a nine-point plan designed to put small and medium-sized (SME) housebuilders at the centre of housing delivery.
The plan aims to enable SMEs to unlock tens of thousands of new homes across thousands of smaller sites nationwide. According to the report, implementing the Nine-Point Plan could immediately reduce costs for SME developers, who currently spend an average of £60,000 more per home for first-time buyers in high-demand areas such as London compared with large PLC developers.
Large-scale residential developers face a combination of regulatory delays and weakening sales pipelines, which have slowed progress on consented developments. In contrast, SMEs are well-positioned to bring forward smaller, individual schemes that are less dependent on large-scale sales and less affected by delays from the BSR.
The Road to a Proportionate System, as the plan is called, outlines nine steps to reduce bureaucracy, rebalance the cost burden, and enable SME-led housing delivery. Key proposals include:
Targeted exemptions for SME developers from requirements such as Biodiversity Net Gain
Simplification of S.106 planning obligations
Embedding proportionality across the planning system through the forthcoming National Development Management Policies (NDMPs)
Proponents argue these measures would allow the government to focus on larger challenges affecting housing delivery while enabling smaller builders to continue constructing new homes. They also say the plan could revitalise the SME housebuilding sector, which has been in decline since the 1990s.
The recommendations have the backing of the All-Party Parliamentary Group (APPG) for SME Housebuilders. Sarah Edwards MP, the group’s chair, described the SME sector as “vital” to reviving housebuilding. Contributors to the report include Nicholas Boys Smith MBE, former chair of the Government’s Office for Place, and Jack Airey, former No.10 special adviser on housing.
Paul Rickard, CEO of Pocket Living, said, “With the volume builders struggling to deliver the homes we need due to a combination of regulatory delays and a softening sales climate for large-phase developments, in part driven by the dearth of support for first-time buyers, there is a golden opportunity for SMEs to step in and take up the slack."
"Our nine-point plan would unlock a wave of sector growth not seen since the 1970s, reversing decades of decline and unlocking the full potential of SME-led delivery.”
