SME support could unlock 100,000 homes a year – HBF

SMEs could increase homes delivery by 56% on average if barriers to building were removed, boosting the supply of new homes by 100,000 a year, according to the Home Builders Federation.

The findings in the State of Play report 2025/26, published today (November 4) and produced by Close Brothers Property Finance, HBF and Travis Perkins, reveal that with the right policy support, SME housebuilders believe they could improve their contribution to housebuilding to a third of the government’s 300,000 homes annual target.

But presently, according to the report, based on a comprehensive study of smaller housebuilders, the tax and regulatory environment is exacerbating the housing shortage, leading to 97% of respondents stating that this is hampering business growth.

The latest State of Play publication lays bare the pressures facing SME housebuilders, including rising costs, increasing complexities and ongoing planning delays. According to the survey, 94% of SME builders cite securing planning permission or discharging conditions as a “major issue”.

And the report shows that, despite the government’s package of measures to aid housebuilders as announced in May, systemic and long-standing matters remain unresolved, also including support for first-time buyers, skills shortages and the cumulative burden …