SME builders give thumbs up to Homes England’s small sites category
SME housebuilders are optimistic Homes England’s new small sites categoryfor schemes of 20 to 70 new homes will give them a greater chance of winning development bids.
The government’s housing and regeneration agency wants more SME regional developers to help develop the8,800 hectares of land it manages offering £20bn worth of development opportunities.
Homes England’s interim chief executive Eamonn Boylan said: “We are keen to encourage smaller regional developers and SMEs and we have created the small sites category to make it easier for smaller companies, who may not have a previous track record of working with us to apply.”
The National Federation of Builders, NFB, has been campaigning for Homes England and local planning authorities to have a small sites category for some time.
NFB policy and market insight head Rico Wojtulewicz said: “Every government says they want to help SMEs but we rarely see one implementing a mechanism to achieve that.
“Homes England’s 20 to 70 site size definition will support SMEs because it defines a site size that SMEs typically deliver, and we are delighted that they listened to our recommendations.”
The Federation of Master Builders, FMB, said the new size definition will give smaller regional buildersa chance to develop some of Home England’s varied land portfolio. These include former new town land, coalfield sites, assets from regional development agencies and former ministry of defence sites.
SME builders key for regional growth
The FMB has campaigned for public bodies including local authorities to work more closely with smaller builders to unlock sites for housing arguing that this would stimulate local growth, jobs and training for young people.
Brokers Hank Zarihs Associates said development finance lenders would be keen to support SMEs bidding to develop land managed by Homes England.
The FMB has cited lack of small sites in councils’ local plans as one reasons for the decline in SME housebuilders. It calculates SMEs are responsible for delivering just 10% of new homes today compared with 40% 40 years ago.
SME housebuilders have complained that smaller sites suitable for under 30 units accounts for a tiny amount of land identified for housing in councils’ local plans. They believe local planning authorities favour larger developments typically delivered by big firms who can afford to wait for years before an application is approved.
In 2021, Homes England simplified applications to develop their land from a panel of partners renewed every four years to one where builders could apply to join at any time. The agency hoped the easier process would encourage more SMEs to apply to become development partners.
Homes England uses a range of public funding streams to support infrastructure like roads, utilities, and community facilities to unlock land for new housing.
Land planned for disposal can be found on Homes England’s Land Hub which lists 148 sites offering a total of 2,500 acres of developable land.