Aldermore calls for greater SME housebuilder support to meet 1.5 million homes target
The call follows the latest Office for National Statistics (ONS) housebuilding figures, which the lender said highlighted that current delivery remains below the pace needed to meet the Government's target.
Aldermore has urged the Government to introduce targeted support for SME housebuilders, warning the UK’s ambition to deliver 1.5 million new homes will be difficult to achieve without greater backing for smaller developers.
The call follows the latest Office for National Statistics (ONS) housebuilding figures, which the lender said highlighted that current delivery remains below the pace needed to meet the Government’s target.
Alongside the appeal, Aldermore has launched its ‘SME Blueprint’, setting out a series of proposals aimed at removing barriers facing smaller developers and unlocking up to 50,000 additional SME-built homes each year.
The lender said SME housebuilders have been disproportionately affected by planning delays, restricted access to finance and weaker buyer confidence, with around one-third leaving the market over the past two decades while larger developers accounted for 90% of housing volume growth.
The blueprint proposes reforms across three key areas.
On finance, Aldermore called for ring-fenced development funding, including a guaranteed loan scheme through the National Housing Bank and the reinstatement of the Help to Build scheme.
For planning, it proposed automatic permission on qualifying sites, statutory decision periods of between eight and 13 weeks and SME-specific housing delivery targets backed by incentives for local authorities.
To stimulate demand, the lender also called for an 18-month Stamp Duty holiday on new-build homes worth up to £500,000 and reforms to Building Safety Regulations to reduce approval delays.
Azfar Rizvi, commercial director for commercial real estate at Aldermore, said: “Today’s figures underline the scale of the challenge facing the Government if it is to meet its ambition of delivering 1.5 million homes.
“The good news is that there is a significant opportunity sitting in plain sight: SME housebuilders.
“SME developers have a vital role to play in increasing housing supply. They bring forward smaller sites, support local economies and help deliver homes in communities that might otherwise be overlooked.
“Yet too many viable developments remain held back by planning delays, constrained access to finance and weaker buyer confidence.”
Rizvi said Aldermore’s proposals were designed to unlock stalled developments and rebuild capacity across the SME sector.
He added: “Having worked closely with SME developers across the country, we’ve seen first-hand the barriers they face.
” Our SME Blueprint sets out practical, targeted recommendations that would unlock stalled developments, bring capacity back into the market and enable smaller builders to make a much greater contribution to housing delivery.”
“We’re also taking action ourselves. Supporting SME housebuilders remains a strategic priority for Aldermore, and we’ve continued to invest in and grow our Development Finance team while enhancing our proposition to better meet the needs of experienced developers.
“This includes funding transactions of up to 85% loan to cost and 70% loan to gross development value, providing experienced SME housebuilders with greater flexibility to progress viable developments.
“The Government’s 1.5 million homes target will not be achieved by major housebuilders alone. If ministers are serious about accelerating housing delivery, supporting SME housebuilders must be a central part of the solution.”
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