William Eichler 08 October 2025

Planning delays and costs hit small home builders

Planning delays and costs hit small home builders image
© nrqemi / Shutterstock.com.

Small- and medium-sized home builders are facing mounting barriers on small sites, with planning delays, rising costs, and new levies threatening their viability, according to a new report.

‘Planning for Small Sites’, from the Home Builders Federation (HBF) and Quantum Development Finance, found that in 2024, just 17,000 homes were approved on small sites of 3–9 units, down from an average of 35,000, with planning permissions on sites of 150 units or fewer falling from nearly 20% in 2008 to 6–8% today.

The report finds that 94% of small-site applications miss statutory determination deadlines, with average approval taking 30 weeks to committee decision plus 21 weeks for formal permission.

SMEs also face high fees, lengthy Section 106 negotiations, and new policy costs including the Building Safety Levy, Biodiversity Net Gain, and potential landfill tax rises.

HBF calls for better local planning authority resourcing, standardised agreements, and faster planning processes to ensure small builders can continue delivering locally supported housing.

Neil Jefferson, chief executive at the Home Builders Federation, said: ‘While Government wants to assist SMEs, the barriers our members are facing is substantial, and needs intervention to reverse the trends of declining small site approvals we are seeing.

‘If we are to deliver new housing at the levels Government is aspiring to, it is critical that developments and businesses of all sizes are supported and that SMEs are given the opportunity to grow.’

SIGN UP
For your free daily news bulletin
Highways jobs

Apprentice - Business & Administration

Essex County Council
Up to £15435.00 per annum
Apprentice - Business & AdministrationFixed Term, Full Time£15,435 Per AnnumLocation
Recuriter: Essex County Council

Street Lighting Project Engineer

North Yorkshire Council
£38,220 - £42,839 per annum
Office base is the Leeming Bar Street Lighting Depot. Leeming Bar, Northallerton
Recuriter: North Yorkshire Council

LGV Driver

North Yorkshire Council
£31,537-£34,434 per annum pro rata
Would you like a rewarding role that allows you to work outside in some of the most scenic places in the country? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Environmental Plant Vehicle Operator

North Yorkshire Council
£27,254- £29,064 per annum
Working in small crews, you will be collecting waste from the local area using small collection vehicles. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Catering Assistant

North Yorkshire Council
£13.28 - £13.28 per hour
As part of our catering team, you will be performing a variety of tasks to help prepare tasty, nutritious meals Beverley, East Riding of Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner