The SME Housebuilding Sector: State of Play report, conducted by the Home Builders Federation (HBF), Close Brothers Property Finance and Travis Perkins, looked at how the Covid-19 pandemic has changed the landscape for housing delivery via SMEs.

Of the over 100 SME housebuilders surveyed, 94% claimed that delays in securing planning permission or discharging conditions are stifling housing supply, with 90% also quoting the lack of resource in local authorities' planning departments as a major impediment.

In addition, 78% see the supply and cost of materials as a significant barrier to delivery, while 59% listed labour shortages as another obstacle.

Land availability was also quoted by 47% of respondents as a major barrier to housing delivery.

To combat these issues, the survey recommends several actions to be taken, including a reform of the planning process, ensuring more land is available for smaller businesses and making development finance easier to access.

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Frank Pennal, CEO at Close Brothers Property Finance, said: “The combined challenge of both labour and material shortages, rising costs and planning delays are a serious risk to the delivery of new homes across the UK. 

“Developing homes takes months and years and while some of these issues might only be short-term, they risk leaving a lasting legacy on the provision of new homes. 

“It is important for the industry to work together to overcome these issues, encouraging young talent into the sector, reforming the planning system and securing sustainable supply chains.”

Stewart Baseley, executive chairman at the Home Builders Federation, added: “Recent decades has seen a collapse in SME builders numbers and the survey shows the considerable challenges the sector continues to face. 

“Every single SME I speak to is suffering badly from delays to the planning process; they are literally having to put their businesses on hold while local authorities delay the start of construction as their planning departments don’t have adequate capacity to process applications effectively. 

“Allied to concerns on materials and staff, planning delays threatens the demise of even more SME builders.”        

Kieran Griffin, managing director at Travis Perkins, commented: “With more people than ever in need of good quality housing, it’s not an option to put down tools. 

“This survey shows how important it is that we work really closely with our customers and suppliers, and across the industry, to ensure developments continue. 

“Only by collaborating and finding smarter and more efficient ways of working together, and planning well ahead of time on projects, will we overcome the current market challenges.”