Housing Secretary Steve Reed MP recently warned that housebuilding must accelerate sharply to meet Labour's 1.5 million new homes target by 2029, as official indicators point to the sharpest construction slowdown since the first Covid lockdown.
Despite national gloom, new FMB research reveals a strikingly optimistic picture among England's small house builders, who now deliver just 9% of new homes, down from 40% in the 1980s.
The FMB's latest House Builders' Survey shows confidence remains high among smaller builders. Nearly three-quarters (73%) report strong buyer demand, while 69% plan to grow their workforce - even as national data shows construction firms cutting jobs at the fastest rate in four years.
The survey of 169 house builders delivering 100 homes or fewer shows small developers align with Government priorities: half predominantly build on brownfield land, 64% feel certain about planning outcomes, and 68% believe recent reforms could unlock growth. More than half have taken on apprentices (56%) and offered work experience (54%) - crucial as nearly one million young people remain out of work, education or training.
But Barriers Remain:
- 9 in 10 report building costs have increased in the past year
- 47% view planning as their single greatest constraint
- One third cite lack of suitable sites
- Two-thirds cannot proceed with sites due to anticipated Section 106/CIL costs
Brian Berry, CEO of the Federation of Master Builders said:
“Many have been downbeat about construction and housing delivery, with recent PMI figures pointing to the sharpest slowdown since Covid, but our survey shows that small house builders are seeing real demand in their communities and are ready to respond. They want to hire, train and build - not sit on the sidelines. They are closer and more reactive to their local markets. The Government needs to back the nation’s local housebuilders, who have been in decline for some decades, this would break the UK’s reliance on a few major players.”
“Small house builders are already doing what the Government says it wants: regenerating brownfield land, offering apprenticeships and work experience, and delivering high-quality homes on a human scale. With the Government chasing 1.5 million new homes and rolling out thousands of subsidised placements for young people, this part of the industry is perfectly placed to step up - if it is properly backed.”
“The message from small house builders is clear: the demand is there, the ambition is there - now the system needs to enable them to grow and restore balance to the housing market - with faster planning, fairer infrastructure costs and better access to land and finance.”
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.
