United Trust Bank (UTB) has partnered with the Federation of Master Builders (FMB) to co-sponsor the newly updated Guide to Becoming a Small Housing Developer, launched to help small builders expand into residential development and contribute to tackling the UK’s housing shortage.
Produced in partnership with Openreach and backed by key industry stakeholders, the 2025 edition provides practical advice for small builders aiming to turn their construction experience into successful development ventures.
The guide’s release comes as the UK continues to fall behind on its target of delivering 1.5 million new homes by 2029, a rate not achieved since the 1960s.
UTB’s sponsorship reflects its ongoing commitment to supporting SME developers through practical resources, specialist finance, and access to funding.
The bank said the initiative aims to help revitalise small-scale housebuilding and strengthen the diversity and resilience of the housing market.
According to the FMB’s latest House Builders’ Survey, more than half of small builders identify the planning system as the greatest barrier to growth, while 60% struggle with access to suitable land and 42% face difficulties securing development finance.
Despite these challenges, many SMEs remain interested in expanding into affordable, community-led, and sustainable housing if the obstacles can be reduced.
Adam Bovingdon, head of property development at United Trust Bank, said: “United Trust Bank is proud to sponsor this important guide, developed in partnership with the Federation of Master Builders, to help aspiring housebuilders take their first confident steps into residential development.
“In a market where just 9% of new homes are delivered by SME developers – down from around 40% three decades ago – we urgently need to rebalance the sector and empower smaller builders to thrive.
“The current housing crisis won’t be solved by relying solely on large housebuilders. We need a diverse ecosystem of developers, especially those rooted in their communities, who can deliver quality homes whilst providing meaningful employment and tax receipts.
“That means removing barriers – from reforming the planning system and streamlining regulations for smaller schemes, to introducing an SME-focused ‘Help to Buy’ initiative tailored to their needs.
“This guide is a practical tool for builders ready to make the leap into development, and for those already on the journey, it offers insights to help them grow sustainably.
“At UTB, we’ve built long-term partnerships with ambitious SMEs, backing them with responsive funding and specialist expertise.
“We’re committed to helping this vital part of the sector flourish and believe that with the right support and imagination, small developers can become the driving force behind the next wave of UK housebuilding.”
The FMB’s President, Chris Carr, echoed the importance of empowering smaller builders: “Back in the late 1980s, small builders delivered over 40% of new homes in this country. Today, that figure has fallen to less than 9%. That’s not just a statistic — it’s a sign that something has gone badly wrong.
“This guide has been created by small and micro developers for those looking to take their first steps into small-scale housing development. Written in plain English, it breaks the process down into clear, practical stages – from site finding and planning to construction and sales.”
You can download your copy of the updated guide HERE
