Ahead of the Senedd election on 7th May, FMB Cymru is urging all political parties to prioritise meaningful reform that supports SME housebuilders.

The group has argued that, with major developers prioritising sites that maximise financial returns, less attractive sites that are still locally important are overlooked.

According to FMB Cymru data, SME housebuilders were responsible for around 40% of new homes in the late 1980s. Now, they deliver just 10%.

•   The Finance Professional Show 2025: The Video
•   License builders, FMB urges govt
•   FMB welcomes govt youth hiring push

FMB Cymru is calling on the next Welsh government to set ambitious national housing targets across all tenures — designed to address the existing backlog — and enforce allocation of small sites in development plans, giving SME housebuilders more opportunities.

Additionally, FMB Cymru is arguing the threshold for “major developments” should be raised to 50 units, with improvements made for firms to access finance for the pre-planning phase of a build.

“If we continue to rely on a small number of large firms to deliver the vast majority of our homes, we will never build at the scale and pace required to meet Wales’s housing need,” said Ifan Glyn, FMB Cymru director.

“Without reform to reduce risk, SME builders simply cannot play the role Wales needs them to play.

“The next Welsh Government must commit to creating the conditions that allow SMEs to thrive.”