Propertymark has set out how the UK Government could help small and medium-sized homebuilders deliver 1.5 million new homes.
The industry body responded to the Ministry of Housing, Communities, and Local Government’s (MHCLG’s) consultation on changing site thresholds for planning.
The proposals looked at easing planning rules for smaller and medium sites to help small and medium-sized homebuilders (SMEs) over the course of this Parliament.
Propertymark said that industry groups like the National Federation of Builders and academic research found that SMEs tend to focus on smaller sites, which are quicker to build once planning is approved.
They said that submitting multiple planning applications for the same number of homes, compared to a single large site, remains a big hurdle for smaller firms.
Larger projects have increased, with developments over 500 units making up 38% of new builds, compared to 8% 25 years ago.
This has made things harder for SMEs and also led to delays in other projects.
Propertymark said cutting costs and reducing red tape is key for SMEs.
They added that SMEs are well placed to build on brownfield sites and deliver affordable and social housing, but warned the industry faces a shortage of skilled workers without more training.
The group called for a streamlined planning process with fewer conditions and a faster decision period.
Propertymark noted a quicker planning system would help SMEs, as projects would be less likely to be rejected and more homes could be built.
They said local councils need resources to hire ecologists to support developers through planning, especially with Biodiversity Net Gain and environmental requirements, which are often rejected by councils.
Propertymark added that the Building Safety Levy should only apply to those responsible for installing dangerous cladding, as some developers are being charged for problems they did not cause.
Henry Griffith, policy and campaigns officer at Propertymark, said: “Propertymark fully welcomes any efforts to help the UK Government meet their ambitious target of constructing 1.5 million new homes in England by 2029, which is why helping SMEs is crucial if they are keen on hitting this ambitious aim in less than five years’ time.
“This can only be achieved via a streamlined planning process that boosts the number of properties being constructed, alongside other measures such as local councils investing in ecologists to help developers through planning applications, and by targeting the Building Safety Levy appropriately.”
