SME housebuilders are being encouraged to share their experiences of the challenges facing the sector, as the annual State of Play survey opens for submissions.
Launched by the Home Builders Federation (HBF), Close Brothers Property Finance and VELUX, the survey aims to build a detailed picture of the issues affecting smaller developers at a time when viability pressures, planning delays and regulatory burdens continue to constrain housing delivery.
Now in its seventh year, the survey has become one of the industry’s most comprehensive assessments of the SME housebuilding sector, with findings regularly used to inform discussions with policymakers and government departments.
The launch comes against a backdrop of continued uncertainty for regional and independent developers. Recent HBF research found that seven in ten SME developers believe current market conditions are limiting their willingness to bring forward new sites, while sentiment around future housing delivery remains cautious.
This year’s survey will examine a range of issues affecting development businesses, including scheme viability, planning performance, land availability, supply chain pressures and the impact of taxation and regulation on housing delivery. Respondents will also be asked for their views on the Government’s housing policies and the practical barriers preventing SMEs from increasing output.
For many smaller builders, the challenges are far from new. Previous State of Play reports have consistently identified planning delays, local authority resource constraints and growing regulatory requirements as major obstacles to growth. The latest report found that 94% of SME builders view planning delays as a significant barrier, while almost nine in ten cite local authority capacity issues as a major constraint on delivery.
Financial viability is also emerging as a growing concern. Rising costs, affordability pressures among buyers and difficulties securing viable outlets for affordable housing have all combined to make development increasingly challenging for smaller firms. Previous State of Play findings showed that many SME builders believe they could significantly increase housing delivery if demand-side barriers were addressed.
Neil Jefferson, Chief Executive of the Home Builders Federation, said: “Small and medium home builders have a vital role to play in meeting the Government’s housing ambitions, but many continue to face significant challenges, from planning delays to rising regulator costs to wider viability pressures.
“The State of Play survey is an important opportunity for SME builders to share their experiences and help ensure that policymakers understand the barriers affecting delivery. If Government wants SME’s to help increase housing supply, it must create the conditions that allow them to grow and invest with confidence”
The survey remains open until 30 June, with the findings set to be published later this year in the 2026 State of Play report.
