Propertymark has outlined how the UK Government could assist small and medium-sized homebuilders (SMEs) in reaching the goal of constructing 1.5 million new homes in England.
In response to the Ministry of Housing, Communities, and Local Government’s (MHCLG) Planning Reform Working Paper consultation on reforming site thresholds, Propertymark highlighted the importance of easing planning requirements for smaller and medium-sized development sites.
MHCLG is exploring ways to boost the construction of new homes by smaller firms through simpler planning rules. Propertymark supports efforts to increase the industry’s capacity to build more homes that better reflect local demand for property size and tenure.
Industry groups like the National Federation of Builders, along with academic studies, point out that SMEs tend to focus on smaller sites that can be completed faster once planning approval is granted. However, Propertymark noted a significant obstacle: many smaller developers must submit multiple planning applications to build the same number of homes that a single larger project would cover.
This has led to a rise in large-scale developments. Projects with over 500 units now account for 38% of new builds, up from 8% a quarter of a century ago. This trend has made it more difficult for SMEs to compete and has contributed to delays in other projects.
Reducing costs and red tape is vital to help SMEs contribute effectively. These builders often work on brownfield sites and deliver affordable and social housing, yet the construction sector also faces a serious labour shortage due to insufficient training.
Propertymark recommends a streamlined planning system with fewer conditions and shorter statutory determination periods. A faster approval process with a lower risk of rejection would encourage more SMEs to develop new homes.
The body also stressed the need for local councils to have the resources to employ ecologists who can assist developers with planning applications. A proactive council role in managing Biodiversity Net Gain (BNG) and other environmental requirements could prevent costly refusals.
Finally, Propertymark called for the Building Safety Levy to be targeted only at industries responsible for unsafe cladding installation. The current system charges developers who never installed dangerous cladding for issues they did not cause.
Henry Griffith, policy and campaigns officer at Propertymark, said, “Propertymark fully welcomes any efforts to help the UK Government meet their ambitious target of constructing 1.5 million new homes in England by 2029, which is why helping SMEs is crucial if they are keen on hitting this ambitious aim in less than five years’ time.”
He added, “This can only be achieved via a streamlined planning process that boosts the number of properties being constructed, alongside other measures such as local councils investing in ecologists to help developers through planning applications, and by targeting the Building Safety Levy appropriately.”
