FMB launches updated Developers’ Guide for small builders

Half of SME builders say planning is the biggest barrier to housebuilding as FMB updates its guide

The Federation of Master Builders (FMB) has launched an updated Developers’ Guide to help small and medium-sized (SME) builders enter the housebuilding market and scale successfully where their contribution has declined sharply.

The guide’s release comes as the UK continues to fall behind on its target to deliver 1.5 million new homes by 2029, requiring an average of 300,000 homes a year—a level not seen since the 1960s.

SME housebuilders now account for just around 10% of new homes built, down from 40% in the late 1980s.

The government estimates that recently proposed planning reforms could enable an additional 170,000 homes by 2029/30, but success will depend on revitalising the role of smaller builders in housing delivery.

The FMB’s most recent House Builders’ Survey reveals that systemic challenges are still holding small firms back from delivering more homes:

• Planning: Over 50% of SME house builders say the planning system is the biggest barrier to delivery, while only 11% feel their local authority is efficient in processing applications.
• Land: 60% report that access to small sites is poor or very poor, with high land prices and competition from large developers restricting opportunities.
• Finance: 42% cite access to finance as a significant barrier, often relying on personal funds or small lenders.

Many builders say they would diversify into affordable and community-led housing if these barriers were reduced.

Against this backdrop, the 2025 Developers’ Guide provides builders with a comprehensive and up-to-date resource for making the housebuilding transition.

Key updates include:

• Smart Construction & Digitalisation: Expanded guidance on modern construction methods and digital tools.
• Land & Due Diligence: Stronger focus on assessing site conditions, building local credibility, and managing contaminated soil.
• Finance & Investment: Coverage of the forthcoming National Housing Bank and National Housing Delivery Fund (from 2026), alongside advice on using digital platforms and the Green Homes Alliance for energy-efficient projects.
• Planning: Guidance reflecting the National Planning Framework 4 (Scotland), more precise explanations of developer contributions, financing risks, and a new boxed section on post-planning hurdles.
• People & Skills: Signposting to CITB’s New Entrant Support Team (NEST), GoConstruct Careers, and new masterclasses for workforce development.
• Sustainability & Building Control: Updates covering the Future Homes Standard (2026), the Home Energy Model, Biodiversity Net Gain (BNG) exemptions for small sites, and the transition to “registered building control approvers” under the Building Safety Regulator (BSR).