Q4 2025 Newsletter (Nov 25)
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.
New Announcements from Steve Reed 🏠🏡
It is encouraging to see that the voices of SME housebuilders are clearly being heard at the Ministry of Housing, Communities and Local Government. Recent statements from the Secretary of State reflect a number of long-standing priorities that the APPG for SME Housebuilders has consistently raised with Ministers and in Parliament.
The changes include:
Clearer rules, faster decisions – national policies now give immediate weight to developments meeting standards
Support for small and medium sites – new ‘medium site’ category, simpler Biodiversity Net Gain, and Small Sites Aggregator funding
Building around stations & brownfield land – a default ‘yes’ to well-connected, high-density, sustainable development
Proportionate regulations for SMEs – reflecting the APPG’s long-standing asks
Taken together, these signals point towards a welcome shift in direction, one that recognises the vital role SMEs play in housing delivery and moves towards a faster, more predictable and delivery-focused planning system.
While this represents a step in the right direction, there is still significant work to be done. We are yet to see small sites formally exempted from biodiversity net gain requirements, and there remains a lack of meaningful demand-side support for SME housebuilders. In addition, any planning reforms will take time to filter through to local decision-making and translate into homes on the ground.
The APPG will continue to engage constructively with Ministers to ensure these commitments are followed through and that the planning system genuinely enables SME housebuilders to deliver at scale.
📊 Recent Events: Post-Budget Analysis
Following the Government’s upcoming Budget, we hosted a Post-Budget Analysis Event. This session unpacked the implications for SME housebuilders, exploring both the challenges and opportunities presented by the new fiscal measures.
We were joined by over 30 people to discuss outcomes from the budget and formulate a response to chancellor. We received a number of useful examples of how policy is effecting delivery on the ground, and this will be fed back in a Letter to the Chancellor from our Chair Sarah Edwards MP.
Steering Group: 17th October Event
At the Steering Group meeting held on 17 October in Parliament, SME housebuilders from across the UK met with parliamentarians and officials from the Ministry of Housing, Communities and Local Government to discuss the findings of our recent survey of 135 SME housebuilders.
Baroness Sharon Taylor joined the session and contributed to the discussion, alongside other stakeholders, as the group examined the most pressing challenges facing SMEs. Chaired by Sarah Edwards MP with Secretariat support from Edwin de Silva, the meeting focused on key priority pressures:
the impact of Biodiversity Net Gain, cited by 58% as a top barrier due to cost uncertainty and planning delays;
the need for market stimulus, with 55% stressing that a weakened sales market and competition from volume builders’ equity schemes are stalling both sales and new development;
the challenges around Section 106 and Section 278, where 51% called for a more flexible cascade system to unblock delivery when Registered Provider bids fall through.
The Steering Group agreed that these insights and accompanying case studies will shape the next phase of engagement with ministers and officials.
Next steps include developing a set of policy recommendations, securing follow-up meetings with MHCLG, and continuing to ensure that SME voices are represented at the heart of future housing policy
🌐 Launch of Our New Website - JANUARY
We are delighted to announce the launch of the APPG’s new website coming to you in January. It will be designed to make it easier for members, stakeholders, and the public to stay informed about our work and progress.
The site includes information on our upcoming meetings and events, policy priorities, and recent reports. We hope this platform will serve as a hub for collaboration and engagement within the SME housebuilding community.
🏛️ Update: Mark Garnier MP’s Debate on Rogue Builders
The House of Commons recently debated growing concerns about “rogue builders” in the home-improvement sector, led by APPG member MP Mark Garnier. MPs highlighted a sharp rise in cases where homeowners paid large sums for work that was shoddy, unfinished or never started, with industry estimates suggesting billions lost over recent years. Constituency examples underscored the emotional and financial toll on families, and MPs argued that the current routes for redress usually costly civil action which leave many without meaningful protection.
Mark and others called for mandatory licensing or registration of builders, tougher action against repeat offenders who dissolve and reopen companies, and clearer ways for consumers to check a builder’s credibility. The Government acknowledged the scale of the problem but said any regulatory overhaul must be carefully assessed, pointing to existing measures under the Building Safety Act. Further review of consumer protections in the repair and improvement market is expected
💡 Drawing attention to the Budgvent Campaign
We have launched our new Budgvent Campaign, a focused policy initiative designed to update and promote our key policy asks and practical solutions for SME housebuilders.
The campaign will highlight the barriers currently facing small developers from access to finance and land to the planning system while setting out actionable recommendations for policymakers to unlock SME capacity and deliver more homes.
See more here: APPG for SME House Builders: Company Page Admin | LinkedIn
📘 State of Play Report – Close Brothers & HBF
We’d also like to draw your attention to the latest State of Play report from Close Brothers and the HBF. We saw the launch in Parliament hosted by APPG chair Sarah Edwards MP which resulted in a hugely succesful night for all.
This comprehensive report offers valuable insights into the current environment for SME housebuilders. Small and medium-sized housebuilders (SMEs) say they’re operating in one of the toughest environments in recent memory, where 97% identify business taxation and the regulatory regime as major barriers to growth.The top-cited obstacles each affecting over 90% of respondents include securing planning permissions and discharging conditions (94 %) and under-resourced local planning authorities (89 %). Many also point to viability pressures (64 %), local or political opposition (66 %), the forthcoming Building Safety Levy (54 %) and the implementation of Biodiversity Net Gain (55 %) as major issues.
Despite these challenges, the report says there’s significant untapped potential: SMEs believe that if these barriers were addressed, they could increase their output by around 56 %, equating to an additional100,000 homes per year across the UK. The HBF calls on policymakers to prioritise reforms to the planning process (reducing cost and complexity), review burdensome regulation and improve infrastructure and land supply frameworks so that smaller developers can meaningfully contribute to meeting housing supply targets.
Thank you for your continued engagement and support. We hope you have a restful break over the festive period and Parliamentary recess, and we look forward working with you to strengthen the voice of SME housebuilders in 2026 and beyond.
Warm regards,
The Secretariat
APPG for SME Housebuilders