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Small house builders ready to deliver, says FMB

Posted: Tuesday, June 3rd, 2025

Reforms to the UK planning system announced by the Government represent a significant boost to the nation's micro and SME house builders.

Streamlined planning for small sites, relaxed biodiversity rules, and a new pilot scheme to unlock land access are welcome changes.

However, there is still more work to be done to fully revitalise small builders’ role in housing delivery, according to the Federation of Master Builders (FMB).

Jeremy Gray, head of external affairs at the FMB said: "This is a big change for the planning system and one that acknowledges the hardships faced by SME house builders over the last few decades, which have resulted in their decline. The UK’s small house builders stand ready to deliver the homes Britain needs, but the planning system has stifled their growth.”

The FMB has long called for reform to the planning system to support SMEs, and so the decision to streamline requirements on sites of up to nine homes, alongside faster decision making, is a positive step, Gray believes.

“The medium site designation will also be welcomed as it reduces planning hurdles, enabling small house builders to scale up their businesses."

He also argues that the small site allocation in local plans needs revisiting to realise the potential of small house builders fully.

“Local planning authorities will also require further investment to ensure that the system has capacity. We know from the FMB’s 2024 Housebuilders’ Survey that communication with planning officers is a major hindrance to building new homes. We look forward to working with the Government on these proposals to ensure that the nation's micro and SME house builders can thrive.”

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