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Why the UK Government Wants Smaller Housebuilders Back at the Centre of Housebuilding

The UK government is increasingly turning its attention to smaller housebuilders—and for good reason. As the country pushes to hit ambitious housing targets, ministers and policymakers are realising that relying solely on large developers isn’t enough. To truly “Get Britain Building,” small and medium-sized builders (SMEs) must be part of the solution.

A Sector in Decline—and Why It Matters

Historically, SMEs built around 40% of the UK’s new homes. Today, that number has dropped to around 10%. Over the past few decades, a mix of land access issues, planning delays, and a lack of finance has squeezed smaller builders out of the market.

This is a problem. SME builders:

  • Build faster and often more innovatively than volume developers.

  • Deliver homes on smaller sites that large firms may overlook.

  • Support local jobs and supply chains, boosting regional economies.

  • Are more likely to use traditional materials and craft-led methods—like masonry—leading to high-quality, characterful homes.

Government Support on the Rise

Recognising their value, the UK government is rolling out a range of initiatives to support SME builders, including:

  • Faster planning for small sites through local development orders and reforms.

  • Access to finance, including loan schemes and funding via Homes England.

  • Support for skills and training, including CITB-backed programmes for bricklayers, site managers, and specialist trades.

  • Levelling the playing field in public procurement to give smaller firms a fairer shot at contracts.

These steps are part of a wider strategy to diversify the housing market, speed up delivery, and create more resilient, locally rooted construction ecosystems.

How We’re Helping

At the Masonry Association of Great Britain, we’re already working with smaller developers and subcontractors to help them meet new regulatory demands—particularly around building safety, installer competency, and product performance.

Through our National Masonry Academy, we offer training, certification, and support tailored to the needs of SME contractors and their supply chains. Whether it’s upskilling your workforce, helping you prove compliance at Gateway 2, or supporting quality assurance on site, we’re here to help.

The Bottom Line

If the UK is to meet its housing targets while maintaining quality, safety, and community value, small housebuilders must not only survive—they must thrive. With the right support and skilled workforce behind them, they can.

If you’re a small developer looking to scale up, stay compliant, or upskill your team—get in touch. Together, we can help build a better future.