This latest phase of reforms marks a positive step toward addressing the chronic housing shortage, but, as ever, their success will depend on how effectively reforms are implemented.

A permanent presumption in favour of suitably located development and a ‘default yes’ for building around train stations is positive news which could release underused land and fast-track delivery, particularly in urban areas where demand is highest and resistance to development typically lower.

SME developers will particularly benefit from clearer support for small and medium sites and streamlined planning processes. I’ve seen first-hand how they are disproportionately impacted by planning delays and complexity, so proposals such as Permission in Principle for medium sites and easing viability negotiations could help boost confidence and capacity in this vital segment of the market.

•   The Finance Professional Show 2025: The Video
•   'Back the builders not the blockers': Industry reacts to govt NPPF reforms
•   New towns' role in protecting the Green Belt from 'piecemeal, ad-hoc development'

For buyers, reforms that promote higher density near transport hubs and diversify housing types will improve choice and connectivity. These changes have the potential to create a ripple effect across the wider economy, stimulating construction activity, creating jobs and boosting regional growth.

From my own perspective as a lender, I am hopeful a more rules-based system will reduce risk and improve predictability. Certainty and speed in planning are the two most crucial components lenders look for, and the hope is this will enable us to support projects with greater confidence.

We should however remember that national policy does not automatically translate into delivery at a local level. Regional and local planning authorities will be pivotal in making these reforms a reality, but in order to do so they need to be equipped with the right resources and skills. The sector is already facing a skills shortage, particularly in areas such as building safety regulation, and without investment in people and expertise, reforms risk being delayed, diluted – or stalling entirely.

At Paragon Development Finance, we’ve worked with hundreds of SME developers to fund the delivery of over 13,000 homes since 2018, but we could do even more with a better-functioning planning system.

We’ll be monitoring the consultation process for these reforms closely and remain committed to partnering with SME developers and helping them navigate these changes.