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Streamlining the Planning Process: A Necessity for SMEs
Smaller housebuilders, often referred to as SMEs, are pivotal in addressing the UK's housing crisis. However, they face daunting challenges due to an overwhelming planning process that requires multiple applications for smaller projects. According to Propertymark, these smaller developers struggle against larger corporations that are better equipped to manage such hurdles. As experts suggest, simplifying this planning process could prove essential for the growth of SME builders and, subsequently, for meeting the government's ambitious housing targets.
The Government's Housing Ambition
The UK government aims to construct 1.5 million new homes across England by 2029. This daunting task can only be accomplished if small developers are empowered to contribute meaningfully. Henry Griffith, from Propertymark, underscores the need for a streamlined approach, pointing out that effective development on brownfield sites would be crucial, particularly in more populated areas. The time is now for local councils to adjust their strategies and make room for these smaller entities to thrive.
Why Are Larger Projects Dominating?
Interestingly, large developments have seen a resurgence, increasing significantly from only 8% of new developments 25 years ago to about 38% today. This shift highlights a preference in the industry favoring larger projects over smaller, community-oriented developments. Outside the planning processes, this prioritization dilutes reliance on local developers who often understand community needs better than corporate giants.
Biodiversity Net Gain: A Double-Edged Sword
Environmental concerns are inevitably tied to the planning process. Local councils often require developers to adhere to Biodiversity Net Gain (BNG) standards — regulations aimed at improving local environments. However, the red tape associated with obtaining appropriate permissions frequently leads to undue delays. Empowering smaller builders with resources to meet these expectations could create a faster, more efficient development cycle, which is vital for the housing goals set forth by the government.
The Role of Local Councils in Supporting SMEs
For the streamlined process to be effective, local councils must step up. There is a strong call for councils to invest in ecologists who can assist developers with environmental needs. This investment not only facilitates smoother planning approvals but also demonstrates a community's dedication to sustainable development. Nevertheless, the current shortage of trained personnel could limit this initiative's effectiveness, leaving many small developers in limbo.
Addressing the Building Safety Levy
The Building Safety Levy is additional legislation that requires scrutiny. While the government has emphasized the need for safety, it must ensure fairness in its application across all developers. Smaller firms are feeling the pinch, being charged for issues that may not originate with them. A targeted approach to the Building Safety Levy could relieve financial pressure on these SMEs, enabling them to invest more in community-building projects instead.
Conclusion: A Call for Change
As the UK grapples with a growing housing crisis, there is a clear need for changes in the regulatory framework that supports the development of smaller housebuilders. By simplifying the planning process and investing in necessary resources, the government can not only meet its ambitious housing targets but also help build vibrant, sustainable communities across the country. Stakeholders must collaborate to overcome these bureaucratic challenges. For property owners and investors, understanding these dynamics presents a wealth of opportunities in the evolving property landscape. Stay tuned for future developments regarding the government's response to these pressing needs.
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