Richard Beresford, chief executive of the National Federation of Builders (NFB), said: “This is a huge win for the NFB. I am immensely proud of our housebuilding members and staff for never giving up on their campaign for a ‘medium-sized’ site definition of between ten and 49 homes.  

After we helped write the National Planning Policy Framework (NPPF), the next logical step was a ‘medium-sized’ definition to sit between Minor, fewer than 10 homes, and Major, ten homes and above.”

In a press release, the Government highlighted that the current system is far too complicated for smaller builders to get spades in the ground, with small sites of 10 homes facing the same planning hurdles as those with 100 or more homes.

It also recognised that smaller firms, which provide local jobs and train eight out of 10 construction apprentices, have seen their market share shrink since the 1980s, when SME builders delivered 40% of the country’s homes.

The proposal includes:

• 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.
• A new pilot to unlock small sites for SMEs: the Small Sites Aggregator pilot in Bristol, Sheffield and the London Borough of Lewisham will unlock sites that would otherwise not have been developed, while attracting private investment to build new social rent homes.