The shortage of affordable homes and the decline of SME developers in the construction industry are critical challenges that demand immediate attention.

Over the last three decades, the number of SME developers has plummeted drastically, dropping from over 12,000 to just around 1,500. This concerning trend has far-reaching consequences for our communities and economy.

In the past, small developers were responsible for an impressive 4 in 10 new build homes, contributing significantly to meeting housing demands. However, this commendable figure has declined to a mere 12% today, exacerbating the housing crisis.

The statistics highlight the urgent need to take action. The top 10 developers deliver 75,000 new homes per year, and the top 35 deliver 100,000 per year. However, to effectively address the housing shortage, we need to build 300,000 homes annually. This calls for a collective effort to support SMEs and empower them to play a more significant role in housing provision.

One of the key challenges faced by SME developers is the blockages in the planning system. These hurdles result in time-consuming delays, which, as the saying goes, “time is money,” affect their cash flow and overall growth.

It’s clear that a one-size-fits-all approach to the planning system won’t suffice. We need to develop targeted solutions to support SME developers on a cost point, streamlining the planning process to save time and resources.

As a community, we must rally behind SME developers. By advocating for tailored planning solutions and more attractive lending terms, we can help SMEs thrive and contribute significantly to reaching the housing goals.