Decline in small house builders continues, warns FMB

March 20, 2025

New figures for planning applications in 2024, published by the Government today show worrying signs that, despite the push to boost house building rates, permissions granted to small sites of 9 units or fewer are down, demonstrating the smallest house builders are struggling to get homes delivered, warns the FMB.

Brian Berry, Chief Executive of the FMB commented: “It is deeply disappointing to see the number of planning applications granted for developments of 9 or fewer units in 2024 were down significantly on the previous year, by almost 2,000. This means a mere 9% of homes delivered will be from the nation’s small local house builders – an increasingly dwindling part of the sector. The Housing Minister has been clear about the need to diversify the housing market away from a reliance on a small number of high-volume builders, yet today’s figures show more needs to be done.”

Berry continued: “What sets small, local builders apart is that they come from the very communities they build for, delivering high quality projects using local skills. But we know from the FMB’s House Builders’ Survey in December 2024 that the planning system is the number one barrier preventing SME builders from building. We need to see more resources allocated to local authority planning departments, dedicated to helping SME builders navigate the challenges of planning system, and allowing them to deliver the homes we need.”

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