SME housebuilders reveal top barriers to delivery as Rayner told targets are unachievable

Being a small housebuilder is harder than it was five years ago, say two-thirds of the UK’s SME developers.

Planning delays, the legacy of the last Conservative government’s policies and difficult economic conditions are all to blame, according to a report produced by the Home Builders Federation, Travis Perkins and Close Brothers Property Finance.

The fifth annual ‘state of play’ report, published today, found that more than half (51%) of SME housebuilders reported waiting more than a year for planning permission, with 94% citing delays as a major barrier to delivery.

The new biodiversity net gain regime, which came into effect this year, was cited by 90% of respondents as a barrier to growth, largely because of delays getting agreement over schemes.

Just 4% believed local authorities had the resources or capacity to help them achieve a 10% net gain.

Nutrient neutrality restrictions (42%), land availability (47%) and obtaining suitable offers for S106 affordable homes (80%) were all cited as major barriers.

The report comes on the day a BBC investigation found widespread scepticism among local authorities about the government’s ability to build 1.5m new homes in England over the next five years.

Responses to a consultation exercise on housing targets, obtained through Freedom of Information requests, showed that Labour, Conservative and Liberal Democrat authorities all raised concerns about the achievability of plans.

Broxtowe’s Labour-run council, for instance, described the suggested increase as “very challenging, if not impossible to achieve,” according to the BBC.

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While the government’s proposed changes to local authorities’ housing targets have received a cool welcome in the public sector, they were more warmly received by housebuilders.

Neil Jefferson, chief executive officer of the Home Builders Federation, said recent planning changes were “very positive”, although he said the government needed to “pull additional policy levers if it is to achieve its ambitious housing target”.

“Ensuring local authority planning departments have sufficient capacity to process applications efficiently is key,” he said.

Jefferson also urged the government to introduce new support for prospective buyers, particularly young people, and to put housing associations on a firmer financial footing.