Could building on smaller plots be the answer to the UK’s housing shortage? A new report suggests that this is the only way the government will meet its target of building 1.5 million homes by 2030.

The report, called “Land Matters,” reveals a worrying trend in the UK’s housebuilding industry. The number of new homes being built has fallen to its lowest point in 15 years. This is mainly because fewer smaller building projects are being approved.

Lack of Smaller Sites is Impacting House Building

The report also highlights that the number of new homes available to buy is close to a 20-year low. This is because there aren’t enough building plots available. This lack of available land is making it harder for smaller builders to compete with big housebuilding companies.

The “Land Matters” report was put together by property experts Savills on behalf of the Land, Planning and Developers Federation (LPDF) and land promotion specialist Richborough.

Report Highlights Urgent Need For Action

Here’s what the report recommends:

• Focus on Smaller Sites: To reach the target of 1.5 million new homes, the UK needs to grant planning permission for one million homes on smaller sites (those with less than 250 plots) over the next five years.
• Support for Smaller Builders: Smaller building projects are crucial because they’re quicker and easier to complete, delivering homes more rapidly.
• Government Action: The government needs to make it easier to get planning permission, particularly for smaller sites. Local councils should be proactive in approving these developments.
• Boost Competition: Encouraging more small and medium-sized builders, including regional and new companies, will create a healthier and more innovative housing market.

Time for Bold Action

Paul Campbell, CEO of Richborough, warned that without quick action, the UK could see more smaller building companies going out of business. He urged the government to take bold steps, emphasising that land promoters like Richborough are ready to invest in new planning applications if the government makes positive changes.

A Call for Support from Local Authorities

Paul Brocklehurst, Chair of LPDF, stressed the need for local councils to support development on smaller sites. He believes that these smaller builders are essential for delivering the homes the UK desperately needs.

Striking a Balance

Emily Williams, a housing expert at Savills, explained that while focusing on smaller sites is crucial in the short term, larger projects and new towns are also important for the future of housing supply beyond 2030.

The report also calls for local authorities to adapt to the changing needs of the housing market, particularly the reduced demand for affordable homes through Section 106 agreements.

The message is clear: to solve the housing crisis, the UK needs to build smarter and faster. Empowering smaller builders by making it easier to build on smaller plots could be a vital step in the right direction.