Moving into housing development
Watching this session is the perfect first step for any FMB member considering the leap from contractor to developer. While the FMB Guide to Becoming a Small Housing Developer provides the technical roadmap, this webinar features policy and communications consultant Andrew Dixon along with Chris Carr, past FMB President and Managing Director of Carr & Carr (Builders) Ltd, discussing his experience of running a development business in the current market.
Download the slides from the webinar:
The 'three questions' of site viability
One of the most critical sections of the webinar covers the due diligence required before you commit capital to a project. Chris Carr highlights three questions every builder must ask:
- Can you sell it? You must identify the specific local demand (e.g., downsizing bungalows or family homes) rather than building what you like.
- Can you get planning? Assess the local political and environmental climate of the specific borough.
- Can you build it? Conduct thorough ground investigations early to avoid ‘sunk costs’ from contaminated or unstable land.
Related viewing: If you are considering a plot with a previous industrial or commercial use, watch our webinar about turning brownfield sites into profitable developments for specific advice on managing site risks.
Beyond the basics: Finance and planning nuances
The discussion dives into the complexities of the ‘capital stack’ and the planning system – areas where expert experience often outweighs theory.
Understanding the 'capital stack'
Andrew Dixon explains that development finance is rarely a simple bank loan. Most SME projects rely on a ‘capital stack’ – a mix of your own equity, first-charge lenders (like United Trust Bank), and potentially mezzanine finance. Lenders in 2026 want to see ‘skin in the game,’ meaning you must be prepared to risk your own capital alongside theirs.
The strategy of 'oven-ready' sites
For your first few developments, the experts recommend looking for sites that already have planning permission. While these ‘oven-ready’ plots may have a higher purchase price, they remove the significant risk of the planning gamble, allowing you to focus on high-quality construction and sales.
Why the 'pre-app' matters
Rather than submitting a full application immediately, the webinar stresses the importance of the pre-application (pre-app) process . This stage allows you to build a constructive relationship with local planners and identify potential deal-breakers before they become expensive delays.
Planning remains one of the most significant hurdles for SME housebuilders, with timelines often stretching significantly. While we provide guidance on navigating the current system, the FMB is also working behind the scenes to make it easier for members to build.
Our Campaigns: You can see how we are lobbying the government for a faster, fairer planning process on our SME House Building campaign page.
Standing out: Quality and smart construction
Small developers have a unique advantage over national volume builders: the ability to focus on quality and customer service.
- Customer Experience: Chris Carr discusses how being a ‘Master Builder’ allows you to offer a personal touch that builds a brand reputation in your local area.
- MMC and Digitisation: The session explores using Modern Methods of Construction (MMC) to combat trade shortages and improve site efficiency, helping you stay lean as a small operator.
Your next step: Download the full guide
This webinar is designed to be used alongside the FMB’s flagship resource. Once you’ve watched the expert discussion, download the the full FMB Guide to Becoming a Small Housing Developer to start planning your first project.
The guide contains the detailed checklists, financial templates, and technical signposting mentioned in this session.
Webinar FAQs: Expert answers
Who is this webinar for?
It is specifically for FMB members – builders and tradespeople – who want to move into small-scale development (typically 1 to 5 units) and need to understand the commercial mindset shift required.
What is the biggest challenge for new developers in 2026?
As discussed in the webinar, planning uncertainty remains the biggest hurdle. The experts recommend budgeting for a 12 to 18-month lead time and assembling a professional team (architect and planning consultant) early.
Does being a builder make me a better developer?
Absolutely. Lenders and buyers value the technical expertise of a builder. However, the webinar explains that you must supplement your building skills with a ‘developer’s hat’ focused on finance, sales, and risk management.
How much capital does a first-time developer need?
Lenders typically expect developers to provide around 10% to 25% of the total project costs as equity. In the webinar, our experts discuss the ‘capital stack’ and explain that while you don't need to fund the whole project yourself, you must show ‘skin in the game’ to secure a first-charge loan.
Can I use modern methods of construction (MMC) on small sites?
Yes. The webinar highlights that ‘smart construction’ is no longer just for volume builders. For SME developers, using MMC or modular elements can help reduce onsite waste, mitigate the impact of local skills shortages, and improve the speed of your build, which is critical for managing interest costs on your finance.
What is the biggest risk to my project's profit margin?
The two biggest ‘margin-killers’ identified by our experts are unexpected ground conditions and planning delays. The session recommends conducting a thorough site investigation before purchase and building a 12 to 18-month buffer into your financial planning to account for the slow nature of the UK planning system in 2026.
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