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

Business Development Manager

North Yorkshire Council
£42,839 - £47,181 per annum
NYES is a leader in delivering high-quality traded services predominantly into the Education sector. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Support Worker x2

Wakefield Council
Grade 6 SCP 12 £16,617.76 - SCP 18 £18,325.55 pro rata
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Early Years/KS1 Lead and Class Teacher

Durham County Council
£39,556 - £51,048
Temporary Contract until 31st August 2027. Full Time Required to start 1st Septmeber 2026.   Hesleden Primary School is looking for a passionate and m Durham
Recuriter: Durham County Council

Caretaker

Durham County Council
£24,796 (pro rata)
Whole Time- Part Time- 20 hours per week (7
Recuriter: Durham County Council

Cleaner

Durham County Council
£24,796 (pro rata to part-time working hours)
Whole Time - Part Time 12.5 hours per week (6am – 8.30am Mon – Fri) Required to start as soon as possible.   The Governors wish to appoint a reliable Consett
Recuriter: Durham County Council
Linkedin Banner