In a survey of 169 housebuilders, the FMB found that 73% anticipate robust buyer demand with 69% planning to increase their workforces as a result.

Furthermore, 68% believe the government’s planning reforms could help diversify the market and boost the number of small developers.

The 2025 Small Housebuilders Survey nevertheless confirmed that many still see challenges in their outlook.

The survey revealed significant barriers, with two-thirds of respondents reporting they are unable to pursue sites due to anticipated Section 106 costs, and over a third stating the process for obtaining planning permission is getting worse.

Additionally, Brian Berry — CEO at the FMB — pointed out that the share of new homes delivered by SME builders has fallen dramatically over recent decades.

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"This decline is not just bad for local house builders, it is bad for consumer choice, it is bad for the range of design being made available, and it is bad in terms of delivery," Brian said.

The results were unveiled at the FMB’s Winter Parliamentary Reception on the House of Commons Terrace and several MPs commented on the findings.

"We recognise the challenges [they] face," said Baroness Taylor of Stevenage, parliamentary under secretary of state for housing and local government.

"Planning delays, regulatory burdens, a lack of suitable sites and access to finance you need to grow and invest, these have hindered SME builders to do what [they] do best."

Sir James Cleverly, shadow secretary of state for housing, communities and local government, added: "The government will have the support of the opposition benches if they are genuinely courageous in reducing the tax burden, reducing the regulatory burden, in making it easier for small local builders to get stuff done.”