According to the SME State of Play Report, produced by Close Brothers Property Finance, the Home Builders Federation and Travis Perkins, 84% of SMEs see a lack of dedicated support as a key barrier.

The survey of 225 SME builders pointed to the need for greater demand-side support which would in turn benefit their businesses.

With the right demand-side support, SME builders predict they could increase output by another 100,000 homes per year.

Waning demand-site support, evident in the withdrawal of Help to Buy in 2023, tallies with other recent HBF research.

This found that homeownership has continued to fall, with the proportion of households owning their own home falling from 71% in 2003 to 64.8% in 2024.

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“SME house builders are ready and willing to build, but affordability constraints are holding back both buyers and developers,” said Phil Hooper, CEO at Close Brothers Property Finance (pictured above, right).

“The government has made encouraging progress on planning reform, but without effective demand-side support, particularly for first-time buyers, that progress risks being undermined.

“Addressing affordability is critical not only for housing delivery, but for wider economic growth and local job creation.”

Neil Jefferson, CEO at the HBF (pictured above, left), added: “SME home builders play a vital role in delivering high-quality, locally responsive housing across the country, but they are highly exposed to changes in demand.

“Without targeted demand-side support — particularly to help first-time buyers access the market — the sustainability of housing demand and long-term market stability remain under threat.”