SME housebuilder

Brokers highlight nine changes which could regenerate SME housebuilding



Reducing red tape, tackling land banking and changing the small sites classification are among the steps that could help to regenerate the SME housebuilding sector, according to a new poll.

The survey by United Trust Bank (UTB) asked brokers working in development finance for three key changes that they believed would have a positive effect on SME housebuilders.

The nine main changes that brokers voted for were:

UTB table

Noel Meredith, executive director at United Trust Bank, said: “We concur with many of the changes brokers believe would help to reinvigorate the SME housebuilding sector.

“As well as the high cost of obtaining planning permissions, development can also be constrained by local political agendas and nimbyism, which can create uncertainty for developers who need certainty when they’re expected to commit considerable capital to new building projects.

“Changing the classification of a ‘small’ site to include those with up to 20 units – or at least demonstrating some flexibility to recognise when sites are clearly SME projects – would also help to alleviate the bureaucratic burden on smaller housebuilders.”

Noel felt that a vibrant SME housebuilding sector would benefit the property market and the economy.

“SMEs often take on smaller, brownfield sites which present challenges larger volume builders have neither the specialism nor inclination to tackle.

“At UTB, we’re keen to help smaller housebuilders grow their businesses and continue to support them in making a significant contribution to the UK’s new homes target.”


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