Based on the views of 122 SME housebuilders, the FMB’s 2022 House Builders’ Survey revealed 38% of respondents found restricted mortgage availability as a barrier to the ability to build more homes.

A further 48% said they expect the issue to worsen over the next three years.

According to the survey results, more than half (62%) of respondents said the biggest constraint for SME housebuilders lies in the lack of ‘available and viable’ land.

Some 60% of respondents cited the planning system as a key area of concern, while 47% cited the shortage of skilled workers as a detriment to the delivery of new projects by SMEhousebuilders.

The government can mitigate the issue by allowing for targeted immigration for the housing sector, improving engagement throughout the planning process, and identifying small sites in local plans to help SME housebuilders find suitable land for construction, the FMB said.

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Brian Berry chief executive at the FMB, said: “This year’s FMB House Builders’ Survey highlights the persistent barriers holding back small, local house builders.

“Delays in the planning system and a lack of available and viable land are stopping the industry building the homes that are needed.

“The lack of mortgage availability reveals the damage that the current economic turbulence has created”

 “A lack of skilled labour is another major barrier holding back the potential of SME house builders.

"This will come as little surprise to many.

“The government must look to develop home grown talent, but targeted immigration has to be an option on the table to support the industry.

“The government can achieve its ambitions for growth and levelling up by supporting the nation’s SME house builders.

“Who better to invest in, than local house builders, who act as the engines of growth in their communities, employing local workers, training local school leavers, and delivering quality homes."