The SME State of Play report details the findings of one of the most comprehensive surveys of Small and Medium Enterprise (SME) housebuilders, conducted by the Home Builders Federation (HBF), Close Brothers Property Finance and Travis Perkins.

The 2024/25 report, published Monday 2 December 2024, shows:

• Over half (51%) of SME home builders report waiting over a year to obtain planning permission
• 56% of SME home builders report a 30% uplift in the cost of obtaining planning permission
• SME home builders face new challenges, such as the implementation of the Biodiversity Net Gain regime, which came into effect this year and is cited by 90% of respondents as a barrier to growth, largely because of delays getting agreement over schemes, with just 4% believing local authorities have the resources or capacity to help them achieve a 10% net gain
• Nutrient and/or water neutrality restrictions are a major barrier for almost half of SME builders (42%)
• Land availability also remains a concern with 47% of respondents citing it a major barrier
• 80% of respondents identified obtaining suitable offers for S106 Affordable Homes to be a barrier to growth
• 94% of SME home builders would like the Government to do more to support them

Planning continues to be the most significant barrier to delivery, with delays and local authority resourcing considered to be key contributors. The increasing cost of obtaining planning permission also poses a challenge to many small builders, with 56% of survey participants seeing costs rise by more than 30% over the last three years (up from 46%).

Despite this, over half of respondents (51%) report waiting longer than a year to obtain planning permission; just 1% of respondents had received planning permission within less than three months.

Aside from planning, ‘Local and/or political opposition to new development’ is also seen as a major barrier by three-quarters (78%) of respondents, up from 69% in the last report. While, 80% of respondents also identified obtaining suitable offers for S106 affordable homes to be preventing growth.