Q1 2026 Newsletter (March 26)
Dear Members of the APPG for SME Housebuilders,
We’re pleased to share the latest updates from the APPG for SME Housebuilders, as we continue our work championing the role of small and medium-sized developers in delivering the homes our country needs.
Message from the Chair
Welcome to the Spring edition of the APPG for SME Housebuilders newsletter, which gives an overview of the APPG’s recent activity and what’s coming down the line.
In my role as Chair, I frequently meet with SME housebuilders from across the country, including in my own constituency of Tamworth. One area that comes up time and again is of course the planning system. With the Government’s consultation on a revised National Planning Policy Framework (NPPF) due to close imminently, this marks a critical juncture to ensure that the planning framework works effectively for SME builders. The application of planning policy at a local level can make a huge difference to whether smaller sites can progress.
The APPG will continue to engage with Government and industry stakeholders to ensure that the voices of SME housebuilders are heard, and that the sector is able to play its full role in delivering the homes the country needs.
Thank you to everyone who continues to share their insights and supports the work of the APPG.
Sarah Edwards MP, Chair, APPG for SME housebuildlers
Engagement with Government
Sarah Edwards MP recently wrote to the Chancellor of the Exchequer, Rachel Reeves, to highlight the challenges facing small and medium-sized housebuilders. Drawing on feedback from SME housebuilders gathered through her role as Chair of the APPG for SME Housebuilders, the letter set out a number of pressing concerns currently affecting the sector.
Among the issues raised were:
The impact of forthcoming Landfill Tax changes, which despite the decision not to merge rates, will still result in significant additional costs for housebuilders.
Apprenticeship funding and the need for greater clarity on how reforms will help address persistent skills shortages in the construction sector.
Rising labour costs, which are contributing to the cumulative financial pressures facing SME housebuilders.
Planning reform and the pace of implementation, with a call for a clear and transparent timeline for delivering the proposed changes.
The letter concludes by inviting the Chancellor to meet with members of the APPG to discuss how fiscal policy can best support SME housebuilders and to explore further opportunities to strengthen this vital part of the housing sector.
On behalf of the APPG for SME Housebuilders, Sarah Edwards MP has submitted several Parliamentary Questions to Mathew Pennycook. Here they are, along with answers from the Minister.
To ask the Secretary of State for Housing, Communities and Local Government, what assessment his Department has made of the potential merits of introducing (a) time limits and (b) penalties for local planning authorities that do not determine small applications within statutory deadlines.
My Department recognises the importance of timely decision-maing in the planning system, particularly for small applications which are often vital to local communities and small businesses. Local planning authorities are already subject to statutory timeframes for determining planning applications. For small or non-major applications, the statutory deadline is eight weeks. Where this deadline is not met, and no extended time period has been agreed, applicants have the right to appeal to the Planning Inspectorate on the grounds of non-determination.
My Department monitors the performance of local planning authorities in terms of both the peed and quality of decision-making, with separate metrics for major and non-major applications. Speed of decision-making is measured by the proportion of decisions that are made within the statutory deadline or an agreed extended time period. The current performance threshold for non-major applications is at least 70% of decisions made within these timeframes.
Where an authority fails to meet this threshold, the Secretary of State has the power to designate the authority. Designation requires the authority to prepare an improvement plan, and applicants may choose to submit relevant applications directly to the Planning Inspectorate, acting on behalf of the Secretary of State.
To ask the Secretary of State for Housing, Communities and Local Government, what discussions his Department has had with HM Treasury about potential measures to support demand for SME-led housing.
My Department has no current plans to make such as assessment.
The Help to Build: Equity Loan scheme, targeted at those wanting to custom build, self build or shell build a home, opened in June 2022 and closed to new applications in March 2025. There are no plans to allocate further funding to it.
The government has introduced a new, permanent Mortgage Guarantee Scheme, available to support and sustain availability of low deposit mortgage products for prospective buyers. Additionally, the Bank of England is easing the loan-to-income limit, enabling up to 36,000 additional first-time buyers in the first year. The Financial Conduct Authority’s (FCA) ongoing review of the mortgage market means many buyers can now borrow 10% more towards a property purchase. The government looks forward to ambitious proposals from the FCA’s paper. First-time buyers may also benefit from home ownership initiatives offered at the local level.
We have also provided £3 billion of additional support for SMEs and the Build to Rent sector, in the form of housing guarantee schemes.
My Department has regular discussions with HM Treasury on a range of issues including measures to support SMEs.
To ask the Secretary of State for Housing, Communities and Local Government, what steps his Department is taking to introduce a cascade mechanism for Section 106 affordable housing agreements.
Section 106 agreements are, and will remain, an essential mechanism for delivering social and affordable housing.
The government continues to progress work on a holistic policy package that will deal with the legacy problem of existing uncontracted S106 unites and also prevent the problem recurring by laying the foundations for a simpler, more transparent, and more resilient S106 system.
Check out the new website for the APPG for SME Housebuilders
We are pleased to announce the launch of the APPG for SME Housebuilders website. The new platform will serve as a dedicated space for publishing reports, consultation submissions, upcoming and recent event information and parliamentary activity & activity, improving transparency and making it easier for members to engage with the group’s work.
Together, we can ensure SMEs continue to play a central role in delivering homes that communities need.
Visit: www.appgsmehousebuilders.co.uk
Warm regards,
The Secretariat
APPG for SME Housebuilders