The Home Builders Federation (HBF) and Close Brothers Property Finance have released a new video, ‘From the Ground Up’, to bring to light the essential contributions of small and medium-sized enterprises (SMEs) in the housing market.
Filmed across SME home builder developments, the video showcases the positive contributions of development within local communities — from supporting local economies to delivering local infrastructure like parks, schools and open spaces for residents to connect.
Among the sites featured includes Cavanna Homes’ Elm Park development in Exeter, a prime example of how modern developments can integrate community-driven features like a sensory garden designed to support residents with dementia.
The second site featured in the video is 3West Group, in London, which highlights how SME builders continue to deliver quality homes despite the challenges posed by planning delays, rising construction costs, and limited land availability.
Also showcased is the Greencore Homes factory, a low carbon construction manufacturer, as well as regional developers and businesses Pivot Developments, Bargate Homes, Bowdon Homes and View from my Window.
With rising demand for new homes, SME builders are overcoming significant challenges, including navigating complex planning processes, securing affordable housing contracts, and implementing the biodiversity net gain requirements, to meet the growing need for housing in the UK.
The release of this video comes at a critical time, as the latest State of Play 2024/25 report from HBF, Close Brothers Property Finance, and Travis Perkins revealed that 51% of SME builders report waiting over a year for planning permission, and 56% have seen costs rise by more than 30% in the last three years.
The report also shows that 80% of builders struggle to secure suitable offers for Section 106 affordable homes, leading to delays and risks to the housing pipeline. Biodiversity net gain and nutrient neutrality rules are major barriers, with 90% of builders citing delays and 42% identifying nutrient restrictions as obstacles.
The industry is calling for continued government support for SMEs to overcome these challenges and help deliver the ambitious target of 1.5 million new homes over the next five years. Critical policy interventions such as better planning capacity at local authorities, solutions to nutrient neutrality restrictions, and financial support for first-time buyers are needed to maintain momentum.
‘From the Ground Up’ underscores how SME builders are integral to achieving the Government’s target of 1.5 million new homes over the next five years and creating communities where people want to live.
Neil Jefferson, Chief Executive Officer of the Home Builders Federation says: “SME home builders are essential to addressing the UK’s housing challenges, but mounting constraints have placed significant strain on small developers. Recent planning changes are a positive step, but more policy action is needed, including ensuring local authority capacity, improving support for first-time buyers, and addressing issues like the nutrients problem and Housing Association funding to help SMEs deliver much-needed homes.”
Phil Hooper, Chief Executive Officer of Close Brothers Property Finance says, “It’s little surprise that, in the face of economic headwinds and uncertainty, two-thirds of SME home builders say it is harder to be an SME housebuilder now than it was half a decade ago. The pro-building rhetoric coming from Westminster is promising but needs to be backed up by concrete action to get Britain building again.”
