It reveals encouraging signs of confidence among small builders alongside persistent challenges that continue to hinder the sector.
The survey of 169 housebuilders found that 73% anticipate robust buyer demand, 69% are planning to increase their workforce, and 68% believe the Government's planning reforms can help diversify the market and boost the number of small developers.
However, Brian Berry, Chief Executive of the FMB, highlighted ongoing concerns about the decline of small housebuilders, noting that their share of new homes has fallen dramatically from 40% in the 1980s to just 9% today.
"This decline is not just bad for local house builders, it is bad for consumer choice, it is bad for the range of design being made available, and it is bad in terms of delivery," Berry said.
The survey also revealed significant barriers, with two-thirds of respondents reporting they are unable to pursue sites due to anticipated Section 106 costs, and over a third stating the process for obtaining planning permission is getting worse.
Baroness Taylor of Stevenage, Parliamentary Under Secretary of State for Housing and Local Government, announced that the Government has launched changes to the National Planning Policy Framework.
"We've simplified planning for sites under 9 homes. Such developments now benefit from faster decisions by expert planning officers with streamlined biodiversity net gain requirements," Baroness Taylor said.
She outlined additional measures including £48 million to support recruitment and training of planners, selling more of Homes England's land in small-only sales, and a £700 million extension to the Home Building Fund.
"We recognise the challenges you face," the Minister said. "Planning delays, regulatory burdens, a lack of suitable sites and access to finance you need to grow and invest, these have hindered SME builders to do what you do best."
In a notable show of cross-party consensus, Sir James Cleverly MP, Shadow Secretary of State for Housing, Communities and Local Government, pledged Conservative support for ambitious reforms.
"The Government will have the support of the opposition benches if they are genuinely courageous in reducing the tax burden, reducing the regulatory burden, in making it easier for small local builders to get stuff done," Sir James said.
He emphasised the Conservative commitment to scrapping stamp duty to increase market churn.
"Small is beautiful. And whenever you see a market that only has half a dozen players, that is not a properly functioning market," he added.
The Government has committed to building 1.5 million new homes by the end of this parliamentary term, with both ministers and shadow ministers emphasising the vital role small and medium-sized building companies must play in achieving this target.
"Your work shows the very real constraints SMEs face, and underscores where our reforms must go further," Baroness Taylor said. "We will keep pushing to ensure you are able to unleash your full potential."
Notes to editors
The Federation of Master Builders (FMB) is the largest trade association in the UK construction industry representing thousands of firms in England, Scotland, Wales and Northern Ireland. Established in 1941 to protect the interests of small and medium-sized (SME) construction firms, the FMB is independent and non-profit making, lobbying for members’ interests at both the national and local level.
The FMB is a source of knowledge, professional advice and support for its members, providing a range of modern and relevant business building services to help them succeed. The FMB is committed to raising quality in the construction industry and offers a free Find a Builder service to consumers.
