Boosting Britain's Builders: What the Government's New SME Backing Means for South West Developers

The Key Measures

1. Streamlined Planning & Faster Approvals

One of the biggest frustrations for regional developers has long been the complexity and unpredictability of the planning system. This announcement directly tackles that:

• For minor developments (up to 9 homes): Planning rules will be streamlined, and decisions will now be made by planning officers, moving away from lengthy committee processes. This promises faster, more predictable planning outcomes, significantly reducing delays and uncertainty that can tie up valuable resources.
• For sites between 10 and 49 homes: Developers will benefit from simpler rules and reduced costs. This includes a proposed exemption from the Building Safety Levy and simplified Biodiversity Net Gain (BNG) requirements. This means less red tape and lower upfront costs, directly enhancing project viability and making more schemes feasible.

2. Increased Access to Land: Levelling the Playing Field

Access to suitable development land has always been a fierce battle for SMEs, often outmanoeuvred by larger national housebuilders. The government is addressing this by committing Homes England to release more of its land exclusively to SMEs. This move is designed to directly increase the supply of viable development sites specifically for regional builders, fostering healthier competition and providing more local opportunities.

3. Improved Financing Options: Fueling Growth

Capital is the lifeblood of development, and securing it can be particularly challenging for smaller firms. The announcement introduces new financial mechanisms to support regional growth:

• A new National Housing Delivery Fund will be established to support long-term finance options. This could provide more stable and accessible funding for vital regional projects.
• Crucially, £100 million in SME Accelerator Loans will be made available. These loans provide direct financial support, enabling smaller firms to expand their operations and invest in their project pipeline.

4. Unlocking Small & Brownfield Sites: Tapping Untapped Potential

The South West has numerous smaller, often complex or brownfield sites that, while offering significant potential, might be overlooked due to perceived challenges. The Small Sites Aggregator pilot aims to bring these together. By attracting private investment to build new social rent homes and address temporary accommodation challenges, this initiative effectively opens up new opportunities for regional developers experienced in complex urban infill or brownfield regeneration.

5. Support for Innovation: Building Smarter

Crucially, recognising the transformative role of technology in modern construction, a £1.2 million PropTech Innovation Fund will be introduced. This fund will support the development of new data tools and technologies for small site delivery, offering regional developers the opportunity to embrace innovation, improve efficiency, and make more informed decisions for their projects.

Our View

• We welcome more delegated decision-making to speed up and depoliticise planning decisions on small sites.
• Based on experience, BNG, though important, can be unwieldy on smaller sites.  Therefore, measures to simplify this process could offer significant benefits if implemented correctly.
• Given that SME builders' market share has shrunk from 40% in the 1980s to around 10% today, providing financial support and releasing public land to SMEs to help diversify supply should be welcomed.
• The Small Sites Aggregator pilot evidently builds on the excellent MMC Playbook with which we have previously been involved, led by the Bristol Housing Festival, whereby design codes and Neighbourhood Development Orders can be combined with MMC construction techniques to deliver social housing at pace.  We look forward to hearing more.
• Proptech (and tech in general) is transforming the sector - giving this a boost is a no-brainer.  

In Conclusion

For South West SME developers, these measures collectively signal a more supportive environment. They translate directly into reduced regulatory burdens, improved financial access, better access to suitable land, and new avenues for unlocking smaller, often complex, development opportunities. 

This government backing aims to make it both easier and more profitable for regional builders to continue delivering the high-quality, diverse housing that the South West critically needs.

These reforms present a genuine opportunity, but only for those who are ready to act. Whether you're seeking to navigate planning changes, secure land, or access funding, we're here to help you move forward with clarity and confidence.

We'd love to help South West SMEs better understand these changes and the opportunities they present.  Please get in touch with Mike Fox at michael.fox@theurbanists.net or 07375 998 772 to discuss further.