Government Backs SME Builders to Get Britain Building

The UK Government has launched a new series of reforms expressly aimed at empowering SME house builders to help drive forward national housing goals. Recognising the vital role smaller developers play in local communities, the changes focus on easing regulatory burdens, unlocking land access and improving financial support.

Why This Matters

Over the decades, the share of housing delivered by small and medium-sized firms has shrunk. Yet SME builders remain key to local job creation, training apprentices and fostering competition in the sector. The current planning and regulatory systems often make it difficult for them to succeed, even when developing as few as 10 homes.

These reforms are intended to rebalance the landscape and make it easier for smaller firms to compete.

What’s Changing: Key Reforms

The government’s new package includes:

• Faster decision-making on small sites: For minor developments (up to 9 homes), decisions will be streamlined and handled by expert planning officers instead of planning committees.

• New “medium site” category: Projects of 10–49 homes will benefit from simplified rules, lighter Biodiversity Net Gain (BNG) requirements, and fewer financial levies.

• More land & finance access for SMEs: Homes England will open up more land exclusively to SMEs, and a National Housing Delivery Fund will help support long-term financing options like revolving credit.

• Small Sites Aggregator pilot: This initiative will bundle together small, often underutilised brownfield plots and invite private investment to unlock development potential. Initial trials will run in Bristol, Sheffield, and Lewisham.

• Additional support measures:
   • £100 million in SME Accelerator Loans
   • £10 million funding for local authorities to speed up environmental assessments
   • £1.2 million PropTech Innovation Fund to drive technology-led solutions for small-site delivery

What It Could Deliver

These changes aim to accelerate build-out on small plots, boost competition across the sector, and help reach the government’s target of 1.5 million homes. By lowering barriers, strengthening financial support, and encouraging innovation, smaller builders will be better placed to scale and contribute meaningfully.

Industry Views

• Angela Rayner (Deputy Prime Minister & Housing Secretary) emphasised that smaller builders must form the backbone of the housing strategy, calling these reforms “urgent action” to make the system fairer.

• Lloyds Bank’s CEO welcomed the Small Sites Aggregator pilot as an innovative approach to unlock investment into otherwise stagnant land.

• Federation of Master Builders and SME representatives praised the shift in planning thresholds, noting that reduced red tape will help smaller firms grow again.

• Many in the sector see the move as overdue and a recognition that SMEs don’t just build homes, they bring diversity, innovation, local responsiveness and training opportunities to the industry.

At Strong Group, we view these reforms as a positive inflection point. For years, we’ve seen how overcomplicated planning rules and restrictive finance models put SMEs at a disadvantage. This reset could help rebalance the market and generate more opportunities, especially in regional and niche developments. 📞 Call us today on 020 8763 6122 to discuss how we can support your project delivery.