New figures released by the Federation of Master Builders (FMB), reveal that the availability of land is the most important constraint holding back local house builders from building new homes.

The FMB’s 2021 House Builders’ Survey – the only survey of its kind to track the experience of small and medium-sized (SME) house builders in England – shows that in 2021:

• 63% of small builders are limited in their ability to build the homes we need by a lack of available and viable land;
• 62% are struggling with material shortages;
• 61% feel held back by the planning system; and
• 53% can’t find the workers they need to build their homes.

The annual survey, now in its tenth year, also indicates that buyer demand is at a survey high. Picking up on behaviour change prompted by the pandemic, with homeowners seeking more space or moves out of cities, builders report the demand for new homes is booming.

Brian Berry, chief executive at the FMB, said: “Demand for new homes is soaring, but the decline of the small house builder has hit the capacity, competitiveness and diversity of the house building industry, and is slowing down delivery. We will fail to deliver, sustainably, 300,000 homes a year unless we take action to reverse this trend.”