The national builders merchant believes these proposals could save smaller developers both time and money.

Thousands of homes will be built faster on smaller sites across the country as complex planning rules are streamlined, onerous regulatory burdens eased, and financial firepower is provided to SME builders. 

The current system makes it far too difficult for smaller builders to get spades in the ground – with a small site of ten homes jumping through the same planning hurdles as one with 100 or more.  

Smaller firms, which provide local jobs and train eight out of ten construction apprentices, have seen their market share shrink since the 1980s, when SME builders delivered 40% of the country’s homes.  

The changes will help turn this around, driving up competition across the sector and helping deliver the Plan for Change milestone of 1.5 million homes, so more working families and young people can achieve the dream of homeownership.

The proposals include: 

  • Faster decisions for small sites: Minor developments of up to nine homes will benefit from streamlined planning and eased Biodiversity Net Gain (BNG) requirements, with faster decisions being taken by expert planning officers, not planning committees; 
  • A new ‘medium site’ category: Sites between ten to 49 homes will face simpler rules and fewer costs – including a proposed exemption from the Building Safety Levy and simplified BNG rules, making it easier to deliver biodiverse habitats on these sites, delivering a win-win for nature and development; 
  • More land and financing options for SMEs: Homes England will release more of its land exclusively to SMEs, and a new National Housing Delivery Fund to be confirmed at the spending review will support long-term finance options, such as revolving credit facilities and lending alliances.  
  • A new pilot to unlock small sites for SMEs: the Small Sites Aggregator will bring together small brownfield sites that would otherwise not have been developed, and attract private investment to build new social rent homes and address temporary accommodation challenges. Building on a model developed by Lloyds Banking Group’s Social Housing Initiative, the Small Sites Aggregator will be trialled this year with input from Bristol, Sheffield and the London Borough of Lewisham and with the support of their regional authorities. This will help tackle the housing shortage, address unviable small plots of land, and create local jobs supporting the government’s Plan for Change

Lee Jackson, Technical Director at Travis Perkins, said: “Smaller construction firms are at the heart of local development, but they’re often the ones most affected by complex planning processes and limited access to finance. These new government measures are a positive step in making things more straightforward.

"It’s encouraging to see more support being offered to SMEs, especially as they take on vital projects like housing and infrastructure upgrades. Anything that helps cut down the red tape and makes it easier for them to get on site is a win.

"We speak to SME builders every day, and we know how committed they are to delivering quality work, even when faced with rising costs and tight deadlines. With better access to funding and clearer planning rules, they’ll have more confidence to take on new opportunities, and we’ll be here to support them every step of the way, whether that’s with materials, tools, on-the-ground advice or through WholeHouse, the simple, smart design and house building platform exclusively available through the Travis Perkins Group.”

Deputy Prime Minister and Housing Secretary, Angela Rayner said: “Smaller housebuilders must be the bedrock of our Plan for Change to build 1.5 million homes and fix the housing crisis we’ve inherited – and get working people on the housing ladder.   

“For decades the status quo has failed them and it’s time to level the playing field. We’re taking urgent action to make the system simpler, fairer and more cost effective, so smaller housebuilders can play a crucial role in our journey to get Britain building.”