Reform for small developers

A report by the Home Builders Federation (HBF) in 2017 stated that the delivery of houses from small builders had been stymied by increased planning risk and lender attitudes.

In 1990 small house builders were responsible for 39% of all new homes built, by 2015 that was 12.5%.

The issues are predominantly

1. The system is too complex

As a result there are a greater number of specialist advisers being required.

2. Delays to the planning system

Pre-applications often add two or three months and additional expenses to the planning process.

3. Permitted development rights

There are only two ways to become an SME developer: either you have a portfolio or experience working on an established brand, both of which are costly and difficult to achieve.

4. Planning obligations

Section 106 often imposes a burden on small sites in both time and costs of negotiation.

In 1990 small house builders were responsible for 39% of all new homes built, by 2015 that was 12.5%.

5. Community Infrastructure Levy

The CIL regulations 2010 are complicated and contradictory and don’t apply in every Borough.

In November 2017 the government began consulting with local authorities to bring forward 20% of housing supplies as small sites, because in theory they should be quicker to get off the ground and also provide a more diverse range of housing. Unfortunately nothing has really changed.

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