SMEs key to solving housing crisis

Cross-party MPs are backing small housebuilders to help solve the housing crisis.

Following release of the ‘Inquiry into support for small housebuilders’, MPs leading the report have urged government to develop a strategy to increase the number of homes built by small builders.

By introducing a new ‘Dedicated Strategy for Small Housebuilders’, the MPs hope to reverse the decline in the number of new homes built by small builders, which has plummeted to just 2,500 today from 12,000 in 1998.

MPs leading the report said: “We have many legitimate disagreements with each other on many aspects of housing policy, but on this we are agreed: we cannot solve the housing shortage without smaller builders.”

The inquiry was supported by the Federation of Small Businesses (FSB), and suggestions made within the report include:

1. Improve access to finance: MPs are calling for a Government backed guarantee on loans to small housebuilders.
2. Action against late payments, with a new “three strikes and you’re out” rule targeting big businesses who repeatedly pay late.
3. Increase apprenticeship opportunities from large to small businesses
4. Remove barriers to building on small sites and help streamline the planning process for smaller firms.

Robert Courts MP, Chair of the APPG, said: “Government action has started to address some of the needs of small builders but we must leave no stone unturned to truly unlock the housing market.

“A new, dedicated strategy for small housebuilders would be an important step in achieving this. This needs to centre on a positive package of measures that removes some the biggest barriers for small builders including the inability to access finance and reducing the cost of developer contributions like the Community Infrastructure Levy.”

Catherine West MP, Vice Chair of the Inquiry, said: “The current state of the UK housing market leaves no doubt that there is huge potential for small builders to make a vital contribution to building the homes we need.

“Our report sets out a series of proposals that will enable small builders to scale up, grow and build more which will help relieve the housing shortage.

“The simple truth is that the UK cannot expect to build the homes we so desperately need unless smaller builders are backed. Giving small builders the keys they need could result in tens of thousands of urgently needed homes being built up and down the UK.

“This will help create jobs, stimulate economic growth and provide the homes the UK need.”

FSB acts as the secretariat for the APPG and supported them on the inquiry.

Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said: “Small housebuilders will welcome the cross-party effort to shine a light on the very real challenges that are holding them back from playing their part in building the homes the UK needs.

“It is vital that the Government does not turn a blind eye to the findings of this report and commits to creating a dedicated strategy aimed at giving small homebuilders the finance, skills and support they need to help fix the broken housing market.”

 

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