SME housebuilders: how to overcome barriers to growth
Planning delays, skills shortages and access to land continue to put pressure on SME housebuilders across the UK. In this episode of Build Up From the Basement, host Iona is joined by Sarah Edwards MP, Chair of the All-Party Parliamentary Group (APPG) for SME Housebuilders and MP for Tamworth, to discuss the challenges facing smaller builders and what needs to change to help the sector grow.
From planning reform and access to finance to rogue builders and the future of construction careers, the conversation explores why SME builders remain critical to delivering new homes and stronger communities.
Watch the full episode to hear Sarah's insights and what they could mean for your business.
Why this topic matters for building businesses
SME housebuilders once delivered around 40% of all new homes in the UK. Today, many smaller builders face barriers that make it increasingly difficult to compete.
As Sarah Edwards explains:
"SME housebuilders have a critical role to play in addressing the housing crisis."
Smaller builders are often best placed to deliver homes on infill and smaller sites, support local economies and create jobs in their communities. But delays, fragmented systems and rising costs continue to restrict growth.
For business owners, understanding the policy landscape and the direction of travel from government can help you prepare for future opportunities and challenges.
Key risks, challenges or pressures discussed in the episode
The episode explores several issues affecting SME housebuilders, including:
- Planning delays that can stall developments for months or even years
- Difficulties accessing suitable land and smaller sites
- Cash-flow pressures created by long development timelines
- The ongoing construction skills shortage
- Challenges accessing affordable finance
- Consumer confidence and the impact of rogue builders on the industry's reputation
Sarah highlights the impact of delays on smaller firms:
"Planning and highways sign-off can delay developments by years, creating enormous cash-flow pressures for SME builders."
The discussion also examines how policy and regulation could help create a fairer environment for reputable builders.
Practical improvements or actions referenced in the discussion
While there are no quick fixes, the conversation points to several areas that could help unlock growth for SME builders, including:
- Better access to information on available development sites
- Improvements to planning processes
- Greater support for skills and careers in construction
- Stronger consumer protection and action against rogue operators
- More accessible and affordable routes to finance
The episode also looks at how emerging technology, including AI, could support administrative processes while recognising the skills that remain uniquely human within construction.
Specialist or expert insight
Sarah brings a distinctive perspective to the conversation through her background in spatial design and her work as Chair of the APPG for SME Housebuilders.
She explains that discussions around sustainability, community design and the future of the built environment have shaped her approach to housing policy and the role of smaller builders in creating places that work for people.
The episode provides valuable insight into how policymakers are thinking about housing delivery, planning reform and the future of the construction workforce.
Systems, professionalism or raising standards
Raising standards across the industry is another key theme of the discussion.
The episode examines the impact rogue builders have on consumers and reputable businesses alike, including the estimated £14.3 billion lost over the last five years by victims of rogue builders.
Sarah says:
"We need proper standards and consumer protection so reputable builders can thrive and bad actors are removed from the industry."
The discussion also explores recent changes to Companies House powers and the importance of improving trust and professionalism across the sector.
FMB member support and resources
At the FMB, we're committed to raising standards in the industry and being the voice of SME builders.
Through our policy and public affairs work, we continue to champion the issues that matter most to members, from planning reform and skills to tackling rogue builders and improving consumer confidence.
Our research and engagement with government help ensure the experiences of SME builders are heard where decisions are being made.
Watch the full episode
The future of SME housebuilding depends on tackling long-standing barriers and creating an environment where smaller builders can thrive.
Watch the full episode of Build Up From the Basement with Sarah Edwards MP to hear the full discussion on planning reform, construction skills, rogue builders and the opportunities ahead for SME housebuilders.
Watch the full episode now.