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Planning Reform and SME House Builders: The Key to Building 370,000 New Homes a Year
England’s housing shortage remains one of the nation’s most pressing challenges. With demand for affordable, high-quality homes far outstripping supply, the government’s target of building 370,000 new homes annually is both high;y ambitious and essential. Achieving it will require bold planning reform and stronger support for small and medium-sized (SME) house builders.
A more efficient, transparent, and flexible planning system can speed up approvals, reduce uncertainty, and unlock land for development. Cutting red tape and improving access to smaller sites would create opportunities for SME builders to thrive in a market long dominated by large developers. These firms bring agility, local insight, and innovation—qualities that can help deliver high-quality homes faster and in more diverse locations.
Supporting SMEs through fairer planning policies, accessible financing, and local partnerships would diversify housing supply and boost competition. Alongside this, aligning housing delivery with infrastructure, transport, and environmental goals is vital. Prioritising brownfield regeneration, coordinating local authorities, and incentivising energy-efficient design will ensure that new homes are sustainable as well as plentiful.
Ultimately, a smarter, faster, and more inclusive planning system—empowered by a vibrant SME building sector—holds the key to unlocking England’s housing potential. They build sites faster and help local areas with new homes in their local economies. With strategic reform and collaborative effort, the government can turn its housing ambitions into reality, creating secure and sustainable homes for generations to come.
