The government has introduced a package of reforms aimed at supporting small and medium-sized housebuilders (SMEs) and accelerating housing delivery across the UK. These measures are part of efforts to meet the “Plan for Change” target of building 1.5 million homes.
Key proposals include simplifying planning regulations for smaller developments, reducing regulatory burdens, and offering targeted financial assistance.
Minor developments—those with up to nine homes—will benefit from faster planning decisions and relaxed Biodiversity Net Gain requirements. A new category for medium-sized sites (10–49 homes) will streamline rules and cut costs, including a potential exemption from the Building Safety Levy.
Homes England will release more land exclusively for SME builders, and a new National Housing Delivery Fund will provide long-term financial support. The government also plans to pilot a Small Sites Aggregator, which will consolidate small brownfield sites to attract private investment and deliver new social housing, helping to reduce the use of temporary accommodation.
Additional support includes:
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£100 million in SME Accelerator Loans through the Home Building Fund
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£10 million for councils to hire environmental assessment experts
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A £1.2 million PropTech Innovation Fund to support small site development innovation
Deputy Prime Minister and Housing Secretary Angela Rayner stated:
“Smaller housebuilders must form the foundation of our Plan for Change to build 1.5 million homes and tackle the housing crisis we’ve inherited—getting working people onto the housing ladder. For too long, the system has held them back. Today’s reforms aim to create a simpler, fairer, and more cost-effective system, giving SME builders a vital role in Britain’s housing future.”
Jeremy Gray, Head of External Affairs at the Federation of Master Builders (FMB), welcomed the announcement:
“This marks a significant shift in the planning system and acknowledges the long-standing challenges SME builders have faced. Streamlining requirements for sites with up to nine homes and faster decision-making are steps in the right direction. The new medium site category will also help SMEs scale up by easing planning barriers.”
Further changes include updating planning committees so councillors focus on major developments while professional planning officers handle smaller applications. Once approval in principle is granted, technical details will no longer be referred back to committees, cutting delays and accelerating construction.
To support the growing industry, the government also plans to train up to 120,000 new apprentices, including many in construction.
