The UK government has unveiled a comprehensive plan to bolster small and medium-sized enterprise (SME) housebuilders, aiming to construct 1.5 million homes by 2029. This initiative addresses longstanding challenges faced by SME builders and aligns with Onyx Money's mission to provide accessible financing solutions.

Small and medium-sized housebuilders are set to benefit from a major overhaul of planning and regulatory systems, unlocking the potential to build thousands of homes more efficiently on smaller development sites across the UK.

For years, SME developers have faced a planning system that treats a modest 10-home project with the same level of bureaucracy as a major 100-home scheme. This has created unnecessary delays and costs that disproportionately impact smaller firms.

The government’s new measures aim to change that — easing outdated rules, removing excessive red tape, and providing dedicated financial support to help these builders scale up and deliver.

SMEs are the backbone of the construction industry, providing local employment and training opportunities, including the majority of construction apprenticeships. Yet their contribution to national housebuilding has steadily declined since the 1980s, when they were responsible for around 40% of all new homes.

Government's Strategic Reforms to Support SME Housebuilders

Recognising the vital role of SME builders, the government has introduced several reforms:

Streamlined Planning Processes: Minor developments (up to nine homes) will benefit from expedited planning decisions, reducing bureaucratic delays.
Regulatory Relief: Medium-sized sites (10–49 homes) may be exempt from certain levies, such as the Building Safety Levy, and face simplified environmental requirements.
Financial Support: An extension of the Home Building Fund provides up to £700 million in loans to SME builders, facilitating the construction of an additional 12,000 homes.
Land Access: Homes England will release more land exclusively for SMEs, enhancing opportunities for development.

Angela Rayner, the Housing Secretary, emphasised the importance of these measures, stating:

“Smaller housebuilders must be the bedrock of our Plan for Change to build 1.5 million homes and fix the housing crisis we’ve inherited – and get working people on the housing ladder.”
“For decades the status quo has failed them and it’s time to level the playing field.”
“Today we’re taking urgent action to make the system simpler, fairer and more cost effective, so smaller housebuilders can play a crucial role in our journey to get Britain building.”

Onyx Money: Facilitating Growth for SME Housebuilders

At Onyx Money, we have long recognised the challenges SME builders face in securing financing. Our tailored solutions are designed to address these needs:

Development Finance: We offer loans up to 75% of the gross development value, with competitive rates starting from 1.25% per month.
Transparent Terms: Our financing comes with no early termination fees and a straightforward 1.5% setup fee.
Efficient Processes: By eliminating unnecessary bureaucracy, we ensure quick decision-making, allowing builders to focus on their projects.

Dan Richards, CEO of Onyx Money, remarked:

"The reforms announced by the government mark a turning point for SME housebuilders, who have long faced an uneven playing field. Simplifying the planning process for small sites and easing regulatory burdens are essential steps to removing the barriers that have held back local developers for decades. When smaller builders are empowered, the entire housing ecosystem benefits — we see more diverse projects, more apprentices trained, and homes delivered where they’re needed most, not just where the big players choose to build.”
“At Onyx Money, we’ve always believed in the potential of SME developers to reshape local communities. Our approach to development finance is designed with their unique challenges in mind — fast, flexible, and transparent. We’re proud to stand alongside this new wave of policy change, offering funding solutions that enable builders to break ground faster and build smarter. These reforms will accelerate the momentum, and we’re ready to help our clients take full advantage of it.”

The Synergy Between Government Initiatives and Onyx Money's Offerings

The government's reforms and Onyx Money's services create a synergistic environment for SME builders:

Access to Capital: With increased government funding and Onyx Money's flexible financing options, builders have more avenues to secure necessary capital.
Reduced Barriers: Simplified planning and regulatory processes, combined with Onyx Money's streamlined application procedures, mean projects can commence more swiftly.
Enhanced Support: Builders benefit from both public initiatives and private sector expertise, ensuring comprehensive support throughout the development process.

The government's commitment to empowering SME housebuilders marks a significant step toward alleviating the UK's housing shortage. Onyx Money stands ready to support this vision, offering tailored financial solutions that enable small developers to contribute meaningfully to the nation's housing goals.

For more information on our services, visit Onyx Money.