SME Housebuilders APPG Update - September 2025
Update on APPG Meeting — 9th July
The APPG’s first in-person meeting, sponsored by Close Brothers Property Finance, took place at Millbank House on 9th July. It was fantastic to see SME housebuilders, policymakers, parliamentary staff and representatives throughout the industry come together to engage in a constructive discussion on how to drive meaningful change for the SME housebuilding sector.
Among the many issues discussed in the meeting was the significant slowdown in the sales market, driven in part by affordability constraints. One striking statistic shared during the session revealed that only one in ten first-time buyers can now purchase a home without help from family.
Potential solutions to the affordability issue that were raised in the meeting included reintroducing Help to Buy but for SME-led schemes exclusively, as well as reforming mortgage lending rules. Planning remains a key barrier, with one member reported a backlog of over 200 outstanding applications in a single local authority. These delays are increasingly squeezing margins and jeopardising access to finance for SME housebuilders.
Amid the urgent—and often existential—challenges facing SMEs, it was encouraging to see leading housebuilders come together to explore practical solutions for removing barriers and expanding the role of SMEs in boosting housing supply.
Steve Reed Becomes Housing Secretary
Following the resignation of Angela Rayner earlier this month, Steve Reed MP has been appointed as Secretary of State for Housing, Communities and Local Government, having previously held the position of Environment Secretary.
Since his appointment, Reed has reaffirmed the Government’s pledge of delivering 1.5 million new homes, citing planning reform as a top priority and stating that he was working on developing an ‘acceleration package’ to help speed up planning applications. He also warned that developers who do not progress with sites at speed face ‘sanctions.’
The APPG for SME Housebuilders welcomes this renewed commitment to supporting housebuilding and looks forward to engaging with the new Secretary of State to ensure the challenges facing SMEs are understood and addressed within Government.
Biodiversity Net Gain Consultation
Biodiversity Net Gain (BNG) regulations and the disproportionate impact these are having on SMEs was another issue that housebuilders cited at July’s APPG meeting. While the need to protect the environment is crucial, the administrative burdens of BNG compliance is holding up projects for months at considerable costs, rendering some sites unviable, even urban sites where the BNG impact is minimal.
Following the meeting we have responded to DEFRA’s consultation, putting forward submissions from our members and will be looking to engage with DEFRA’s new head, Emma Reynolds MP, on ways of improving implementation of BNG that are fair for SMEs. We welcome any further case studies from our membership.
Steering Group Meeting — Wednesday 15th October
The next APPG event will be a Steering Group on Wednesday 15th October at 10:30 am at Parliament, which will bring together over a dozen of the UK’s leading SME housebuilders with senior policymakers across Government. We hope that Housing Minister, Matthew Pennycook, will attend.
This meeting represents a critical opportunity to identify fast, effective policy interventions that can unlock growth for SME housebuilders and deliver tangible results within a short time frame. Removing barriers to SME housebuilder growth and bring forward solutions that can be adopted within current or upcoming legislative frameworks.
NHBC Training Centre in Tamworth
Sarah Edwards recently visited the new National House Building Council Training Centre in her Tamworth constituency, which welcomes its first cohort of students this month. The new facility will have the capacity to support over 100 apprentice each year and will offer hands-on training in bricklaying, groundwork carpentry and more. The centre replicates a real building site to give apprentices the skills and confidence they need to thrive in the modern construction industry.
Planning & Infrastructure Bill
The Planning and Infrastructure Bill completed its House of Lords Committee Stage on 17th September. It is next scheduled for Report Stage in the Lords, beginning 20th October.
During the Committee Stage, members debated and proposed several amendments focused on improving the environmental framework, including adjustments to Environmental Delivery Plans and measures addressing flood risk and sustainable drainage. Other key areas of focus were neighbourhood planning reforms, the role and funding of local planning authorities, delegated decision-making to planning officers, and mechanisms to enhance community engagement and affordable housing delivery.
Reducing Red Tape for SME Housebuilders: A 9-point plan
Affordable home developer, Pocket Living have outlined a nine-point plan for reducing red tape for SME housebuilders. These include redefining ‘medium sites’, introducing ‘brownfield passports’ and reforming mortgage rules and exempting or simplifying BNG requirements for small brownfield sites.
You can read their report The Road to Proportionate System.
In the report’s foreword Sarah Edwards, chair of the APPG, said: “Across the country, underused sites and empty shops blight our communities, yet SME housebuilders have the flexibility to transform these spaces where large developers won’t. This new report shows that these builders face disproportionate costs, stifling their contribution. We must support them to revitalise neglected areas and deliver the homes our communities so badly need.”