The government has unveiled a wide-reaching package of housebuilding reforms designed to unlock small-scale development and reinvigorate the role of SME housebuilders — and the ripple effects could benefit small businesses across the board.
At the heart of the reforms is a £100 million loan fund targeted at SME construction firms, alongside changes to planning rules, land access and project approvals. It’s part of a broader £700 million expansion of the Home Building Fund and a flagship attempt to tackle the UK’s housing shortage by delivering 1.5 million new homes while stimulating regional growth and job creation.
According to Joe Phelan, business loans expert at money.co.uk, this is a significant moment for small developers and those working in and around the construction sector. “The government’s new reforms aim to reverse the decades-long decline in SME housebuilding,” he said. “But their impact could be even broader — helping to revive local economies and create new opportunities for small businesses of all kinds.”
For years, small developers have faced the same bureaucracy and red tape as large-scale builders. Whether building 10 homes or 100, the same processes and delays often apply. These hurdles have led to a dramatic fall in market share for SMEs — from building 40% of new homes in the 1980s to a fraction of that today.
Smaller developments — up to nine homes — will now benefit from simplified planning processes, quicker decisions by trained planning officers (rather than elected committees), and lighter biodiversity requirements. Medium-sized projects of up to 49 homes will also see regulation eased, including exemptions from the Building Safety Levy.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
