The Government risks missing its target of delivering 1.5 million new homes unless it introduces greater support for SME housebuilders, according to Aldermore, which has launched a new blueprint aimed at increasing housing delivery by up to 50,000 homes a year.
Published following the latest ONS housebuilding statistics, Aldermore's SME Blueprint argues that smaller developers have been disproportionately affected by planning delays, limited access to development finance and weaker buyer confidence. The lender said around one-third of SME housebuilders have ceased operating over the past two decades, while larger developers have accounted for 90% of housing delivery growth.
The Blueprint sets out a series of recommendations designed to remove barriers facing SME developers. These include ring-fenced development finance through the proposed National Housing Bank, the reinstatement of the Help to Build scheme, statutory planning decision periods of between eight and 13 weeks, SME-specific housing delivery targets for local authorities and an 18-month stamp duty holiday on new homes priced below £500,000.
Azfar Rizvi, Commercial Director for Commercial Real Estate at Aldermore, said: "Today's figures underline the scale of the challenge facing the Government if it is to meet its ambition of delivering 1.5 million homes. The good news is that there is a significant opportunity sitting in plain sight: SME housebuilders.
"SME developers have a vital role to play in increasing housing supply. They bring forward smaller sites, support local economies and help deliver homes in communities that might otherwise be overlooked. Yet too many viable developments remain held back by planning delays, constrained access to finance and weaker buyer confidence."
Aldermore also called for reforms to Building Safety Regulations to reduce approval delays and improve the delivery of viable schemes.
The lender said supporting SME developers must form a central part of the Government's housing strategy if it is to accelerate delivery and meet its long-term housebuilding ambitions.
