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New APPG Report Highlights the Real Barriers Facing SME Housebuilders

Jan 12, 2026

We’re proud to have partnered with the APPG for SME Housebuilders on a new report, Building Britain’s Future: How to Empower SMEs, which draws on detailed survey feedback from members of the Regional & Bespoke Housebuilders Forum. The findings paint a clear picture: SMEs are ready to deliver more homes, but the system around them is holding them back.

The data is striking. An overwhelming 94% of SME respondents say delays and lack of resource in local planning departments are causing major or significant problems for their businesses. It’s the single biggest barrier identified, and one that Forum members repeatedly describe as slowing delivery, increasing costs and creating unnecessary uncertainty.

The report also shows how Section 106 and affordable housing requirements are placing real pressure on SME viability, with 60% viewing these obligations as a major or significant issue. At the same time, 61% of respondents say a lack of suitable small sites is a major constraint — a reminder that SMEs need access to the kinds of land opportunities often overlooked by larger developers.

Encouragingly, the report finds that finance is not the primary challenge for most SMEs. Only 27% cite access to finance as a major or significant issue, while 63% favour some form of government-backed financial support, whether through development loans or help for first-time buyers.

Together, these insights make one thing clear: if the UK is serious about diversifying its housing market and boosting supply, the voice of SMEs must be central to future policy. This report gives policymakers exactly that, a real-world evidence base, which is shaped directly by the housebuilders delivering homes on the ground.

We’re delighted to support the APPG in taking this work forward and ensuring that the unique challenges of regional and bespoke housebuilders are properly understood and properly acted upon.

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