Housebuilders call for government action to save SME development sector

Latest News Tue, Sep 3, 2024 5:56 AM

Pocket Living and leaders of the housebuilding industry have launched a new campaign to calling on the Government to take immediate action to save the sector from potential collapse.

The campaign comes as a response to the Getting Britain Building Again challenge laid down by the new government and reflects the dire situation currently facing many SME housebuilders.

Ten policy recommendations have been published for how the Government seeks to rejuvenate the SME housebuilding sector, support the target of constructing 1.5 million homes and increase competition and choice for renters and purchasers of new homes.

These include streamlining the planning committee process, unlocking housing delivery on smaller sites, and enabling Homes England to better support SME developers. A number of the proposals could be incorporated into the government’s NPPF reform, announced this week by Angela Rayner.

The need for such intervention is critical, with the number of SME housebuilders plummeting to fewer than 2,500 today, down from over 12,000 in the late 1980s. This alarming decline along with other factors such as access to labour, construction costs, contractor insolvencies and the challenges of the planning system, has triggered an urgent warning from the industry that planning reform alone will not deliver the homes Britain needs without the builders to build them.

This campaign follows a series of announcements from the chancellor, Rachel Reeves, and has been contributed to by major players such as Berkeley Group, CIOB and a range of SMEs, suggesting a range of cost-effective and easily actionable policies.

Currently, SMEs are responsible for only 10% of the UK’s housing output, a significant drop from the 1960s and 70s when they contributed nearly 50% of new homes. This percentage is also considerably lower than that of many European countries.

As a reflection of how important the SME sector is to the wider industry, almost 50 organisations responsible for most of the UK’s open market and affordable housing delivery have come out in support of the campaign, including Barratt Developments, Berkeley Group, Clarion Housing Group, Southern Housing, British Land, Related, Peabody and a range of SMEs and Trade Bodies.

David Thomas, chief executive of Barratt Developments, said: “We welcome this report and its recommendations which are a positive and creative addition to the debate on housing policy. SMEs are vital to housing delivery, and we’d encourage the Government to look at ways they can be supported alongside other providers in the sector.”

Paul Rickard, managing director of Pocket Living, said: “As a sector, we are staring down the barrel of extinction, and it’s time for the government to take action before it’s too late. “Without a flourishing SME housebuilding sector, there is no way the government will deliver on its promise of 1.5 million homes by the end of this term.”

Marc Vlessing, founder and chair of Pocket Living, added: “Ever since I co-founded and led Pocket 20 years ago Labour has had a strong history of supporting small businesses in the UK. Their manifesto today promises to make small businesses ‘the beating heart of our economy’, so it’s time to use their substantial majority, heed the sector’s calls and implement these ten policy proposals, which are designed to be cost-neutral for the Treasury and should be low-hanging fruit for the Chancellor.”

Featured News

Specification news
Natural History Museum awards contract to Mace for new...

The Natural History Museum has appointed Mace as the main contractor to manage and...

Read More >>

Specification news
Want the Lowdown on Rainscreen Cladding Specification?...

As the popularity of external cladding on UK homes grows, Dan Redfern, Head of...

Read More >>

BUILDING PRODUCT LIBRARY - LATEST BROCHURES

Proctors Spacetherm Building & Construction Brochure

Proctors Spacetherm...
By A Proctor Group Ltd.

Download Now >>

Proctors Proctor Passive Brochure

Proctors Proctor Pas...
By A Proctor Group Ltd.

Download Now >>

Proctors Air Brochure Brochure

Proctors Air Brochur...
By A Proctor Group Ltd.

Download Now >>

Proctors Modular & Offsite Solutions Brochure

Proctors Modular & O...
By A Proctor Group Ltd.

Download Now >>

Proctors Hamm Principles Brochure

Proctors Hamm Princi...
By A Proctor Group Ltd.

Download Now >>

BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS

SOPRALENE FLAM 180 AF
SOPRALENE FLAM 180 AF

Membrane composed of elastomer modified bitumen and a non woven polyester reinforcement.The upper...

Read More >>

FLAGON SR DE PVC
FLAGON SR DE PVC

Membrane composed of flexible PVC and a polyester reinforcement. Available in different RAL...

Read More >>

FLAGON S PVC
FLAGON S PVC

Membrane composed of flexible PVC. Available in different RAL Colours.Used for detailing work. The...

Read More >>

CONSTRUCTION VIDEOS - LATEST VIDEOS

Why our Canopies Last Longer
Why our Canopies Last Longer

https://www.aandslandscape.co.uk/ Find out why A&S Landscape Canopies last longer than alternatives....

Watch Now >>

Enclosed Dining Canopy - Hampton Gardens School
Enclosed Dining Canopy - Hampton Gardens School

A&S Landscape designed and installed a large enclosed, curved roof canopy for Hampton Gardens School...

Watch Now >>

Dining Area Canopy at John Spendluffe Technology College
Dining Area Canopy at John Spendluffe Technology College

We designed and installed a new dining area canopy for John Spendluffe Technology College. This has...

Watch Now >>