Government Fast-Tracks Planning to Empower SME Housebuilders

New rules aim to unlock small sites, simplify planning, and boost finance options for SME developers.

On 28 May 2025, the government unveiled a sweeping set of proposals designed to level the playing field for small and medium-sized housebuilders — a move that could reshape the future of residential development across the UK.

The headline? Faster, simpler planning rules for smaller sites, backed by new financial support and targeted land release. For SME developers long burdened by red tape and rising costs, this could be the long-awaited break they need.

Key Measures Announced:

  • Fast-track planning for small sites (up to 9 homes):

Minor developments will now be processed more swiftly, with decisions handled by planning officers rather than full committees. Biodiversity Net Gain (BNG) requirements will be eased, reducing delays and upfront costs.

  • A new ‘medium site’ category (10–49 homes):

These sites will benefit from simplified rules and potentially lower costs — including exemptions from the Building Safety Levy and streamlined BNG obligations. It’s a shift that acknowledges the gap between single plots and large-scale development.

  • Better access to land and finance:

Homes England will release more land exclusively for SME use, while a new National Housing Delivery Fund — to be confirmed in the upcoming spending review — will support long-term lending structures like revolving credit and lending alliances tailored for smaller developers.

  • Small Sites Aggregator pilot launched:

The government will trial a new approach to unlocking hard-to-develop plots in Bristol, Sheffield, and Lewisham. The aim is to turn underused land into viable small housing schemes — including new social rent homes — with the help of private investment.

A “Plan for Change” Backed by Action

Deputy Prime Minister and Housing Secretary Angela Rayner said the changes were a core part of the government’s plan to deliver 1.5 million new homes.

“Smaller housebuilders must be the bedrock of our Plan for Change… It’s time to level the playing field,” Rayner said. “We’re taking urgent action to make the system simpler, fairer, and more cost-effective.”

The announcement comes alongside broader reforms to planning committee processes. Councillors will be expected to focus on major schemes, while technical decisions on small sites are delegated to trained planning officers — a shift designed to ease bottlenecks and boost housing starts.

The government has also committed to training up to 120,000 new apprentices, with construction high on the priority list.

Industry Reaction: Positive, but Cautious

The property and finance community has broadly welcomed the move — while stressing that effective implementation will be key.

Roshan Doostdar, Director at Vision Finance, noted:

“Anything to streamline the planning process will be welcomed by our clients. Planning delays cost our clients dearly to the extent the majority of our clients will not take planning risk at all, which is not positive for housebuilding. Hopefully this can now change.”

What This Means for SME Developers and Finance Clients

If you’re a small or mid-size housebuilder, this package of reforms represents real opportunity:

  • Quicker approvals mean faster project starts and reduced holding costs.

  • Simplified rules create fewer regulatory hurdles and more predictable cashflow.

  • Improved access to land and long-term finance makes scaling your pipeline more viable.

As always, aligning your project with the right finance partner is crucial. From navigating policy changes to structuring deals that maximise flexibility, the right advisor can help you capitalise on these reforms from day one.

Want to discuss how these changes could unlock new opportunities for your next development? Get in touch with our team of property finance specialists today by email developments@visionfinance.co.uk or call us on 0207 206 2500.