Wedoany.com Report-Jun 2, The UK government has introduced reforms to speed up the construction of thousands of homes, focusing on smaller sites to support small and medium-sized enterprise (SME) builders. These measures aim to simplify planning processes, reduce regulatory barriers, and provide financial aid to boost the market presence of domestic SME builders, which has declined since the 1980s.

The move is part of the government’s Plan for Change.

The reforms include faster planning decisions for developments of up to nine homes, a new “medium site” category for 10 to 49 homes with reduced costs and simpler rules, and increased access to land and financing for SMEs. Homes England will allocate more land exclusively to SMEs, and a National Housing Delivery Fund will offer long-term financing, with details to be finalized at the upcoming spending review. A pilot program, the Small Sites Aggregator, will combine small brownfield sites for development, supported by regional authorities in Bristol, Sheffield, and Lewisham, aiming to address housing shortages and create local jobs.

Deputy Prime Minister and Housing Secretary Angela Rayner stated: “Smaller house builders must be the bedrock of our Plan for Change to build 1.5 million homes and fix the housing crisis we’ve inherited.” She added: “Today we’re taking urgent action to make the system simpler, fairer and more cost-effective, so smaller house builders can play a crucial role.” The reforms are designed to enhance homeownership for working families and young people, supporting domestic housing needs without impacting trade dynamics.

Modernized planning committees will allow councillors to focus on major projects, while trained planners expedite smaller developments, saving time and resources for local councils. Additional support includes £100 million in SME Accelerator Loans, part of a £700 million Home Building Fund expansion announced in December 2024, to aid SME growth. Furthermore, £10 million will fund environmental assessment specialists for councils, and a £1.2 million PropTech Innovation Fund will promote innovation in small-site delivery.

The government’s initiatives aim to achieve the highest homebuilding levels in over 40 years, contributing £6.8 billion to the economy by 2030. By empowering SME builders, the reforms seek to address housing shortages and foster sustainable economic growth across the UK.