At Urban Village Group, we welcome the government’s renewed commitment to empowering small and medium-sized developers to play a central role in addressing the UK’s long-standing housing shortage. For too long, SME housebuilders have faced a complex mix of structural challenges — from slow and unpredictable planning processes to limited access to land and finance — all of which have constrained their ability to deliver much-needed homes.
The recently announced reforms represent a genuine turning point for the sector. By simplifying planning procedures, unlocking targeted funding, and improving access to suitable development sites, the government is sending a clear signal that SMEs are not just participants in the housing market, but critical drivers of its future growth and resilience.
This shift closely reflects our long-held belief that SME developers bring a unique agility, local knowledge, and community-focused approach that larger operators often cannot match. These qualities are essential for creating diverse, vibrant, and sustainable developments that reflect the needs of the people they serve.
For Urban Village Group, these reforms our mission: providing high-quality supported living and specialist care schemes in communities across the UK. By removing barriers and accelerating decision-making, the new measures will allow us to bring forward more projects, more quickly — ensuring that those who need safe, well-designed, and purpose-built homes can benefit without unnecessary delays.In the sections that follow, we explore the details of the government’s proposals, the opportunities they create, and how they will help set a new pace for progress in the housing and care sectors alike.
Urban Village Group welcomes the UK government’s newly announced reforms, which aim to restore small and medium-sized (SME) housebuilders to the forefront of national housing delivery. These significant changes are designed to remove long-standing barriers that have limited the growth of SME developers for decades and represent a pivotal shift in housing policy.
Part of the government’s wider Plan for Change — which seeks to deliver 1.5 million new homes and generate employment across the sector — the reforms promise simpler planning procedures, enhanced access to land, and increased financial support tailored specifically for SME developers.
SME builders once contributed to 40% of new housing delivery in the 1980s, a figure that has declined dramatically in recent years. Despite this, their influence remains vital. Smaller firms train approximately 80% of all construction apprentices, highlighting their essential role in skills development and future workforce sustainability. These reforms are a clear effort to reverse this long-term decline and re-establish SMEs as a core pillar of the UK housebuilding market.
A central focus of the proposals is the simplification of planning for developments with fewer than 50 homes. Smaller sites of up to nine units will benefit from faster, officer-led planning decisions rather than waiting on planning committees. These schemes will also be exempt from the Building Safety Levy and benefit from streamlined biodiversity regulations. Medium-sized developments, defined as those delivering between 10 and 49 homes, are expected to benefit from similar regulatory relief, making them more viable and attractive for SME delivery.
The government is also launching a new initiative, the Small Sites Aggregator, which will trial a model that packages together small brownfield plots to create viable development opportunities for SMEs. Pilots will begin in Bristol, Sheffield, and Lewisham, with a particular focus on delivering social rent housing and addressing urgent temporary accommodation needs. This model builds on the work of Lloyds Banking Group’s Social Housing Initiative and reflects a growing emphasis on unlocking underused urban land. Further support will be provided through the release of additional land by Homes England, made available exclusively for SMEs. A £100 million SME Accelerator Loan scheme will offer new funding options to drive early-stage projects forward. Local councils will receive £10 million to recruit specialist planning and environmental professionals, enhancing their capacity to support development. In addition, a £1.2 million PropTech Innovation Fund will help improve the delivery of small sites through digital innovation and smarter planning tools.
“Today we’re taking urgent action to make the system simpler, fairer and more cost effective, so smaller housebuilders can play a crucial role in our journey to get Britain building.”
Deputy Prime Minister and Housing Secretary stated that smaller housebuilders must be the foundation of the Plan for Change and that for too long, the system has failed them. She reinforced the government’s commitment to getting working people on the housing ladder and correcting years of imbalance in the industry.
The reforms have been welcomed by industry leaders. Paul Rickard, CEO of Pocket Living, said the proposals show a clear recognition of the important role SMEs play, while Richard Beresford, Chief Executive of the National Federation of Builders, described the package as the strategic move SMEs have been waiting for.
Urban Village Group recognises these reforms as a strong step toward rebalancing the housing sector. As a developer committed to delivering high-quality, specialist housing across the UK, we understand the critical role SMEs play in supporting local communities and driving innovation. These changes promise a more supportive environment for agile developers to thrive and contribute meaningfully to the national housing agenda. Commenting on the announcement,
Further consultations are due later this year to explore thresholds for planning reform and how biodiversity requirements will apply to small and medium developments.
Peter Steer, Finance Director of Urban Village Group:
“This is a much-needed and welcome intervention. For too long, SME developers have faced disproportionate challenges in bringing forward high-quality schemes. These reforms create a more level playing field and reflect a real understanding of the barriers we’ve been up against. It’s encouraging to see a government strategy that not only supports growth but also recognises the value that SME-led developments bring to local communities across the UK.“
If you would like to learn more about our investment opportunities in our specialist homes developments, please ask for further details or request a call with member of the team at info@urbanvillagegroup.com