The National Federation of Builders (NFB) has welcomed sweeping planning reforms announced by the Government as a “landmark victory” for small and medium-sized house builders, praising ministers for finally recognising the unique needs of SME developers and acting to remove the barriers holding them back.

The reforms—centred on a new ‘medium’ site classification for 10 to 49 homes, streamlined planning for smaller sites, and better access to land and finance—represent one of the most SME-focused policy packages in decades.

“This is a huge win for the NFB, and even more so for the small builders who’ve been ignored for far too long,” said Richard Beresford, Chief Executive of the NFB. “For the first time, government policy is clearly acknowledging that SMEs operate differently from volume builders—and deserves a planning system that works with, not against them.”

A Planning System that Works for SMEs

At the heart of the reforms is a long-called-for ‘medium’ site definition, which fills the long-standing gap between ‘minor’ developments (under 10 homes) and ‘major’ sites (10 or more). Until now, a 10-home development faced nearly the same bureaucracy as a 100-home scheme.

“The creation of a ‘medium’ category is a massive step forward,” said Rico Wojtulewicz, Head of Policy at the NFB and the House Builders Association. “It brings much-needed proportionality to planning policy and shows that government understands how SMEs build—and how they contribute to local economies, jobs, and innovation.”

Government Backing, Finally Delivered

The Government’s proposals—developed in close consultation with industry—acknowledge the urgent need to reverse the decades-long decline of SME builders, who once delivered 40% of the UK’s homes but now account for a fraction of output.

Key announcements include:

• Streamlined planning for small sites: Faster decisions and reduced Biodiversity Net Gain (BNG) requirements for developments of up to nine homes, removing delays that often stifle SME delivery.

• New ‘medium site’ rules: Sites of 10–49 homes will be eligible for simplified rules, including a proposed exemption from the Building Safety Levy, more practical BNG expectations, and faster local plan adoption.

• Access to land and finance: Homes England will prioritise SME access to its land portfolio, with a National Housing Delivery Fund (to be confirmed at the next Spending Review) supporting long-term finance.

• Small Sites Aggregator pilot: Trials in Bristol, Sheffield, and Lewisham to unlock land for SME-led and social housing delivery.

NFB: “A Practical, Deliverable Step Forward”

The NFB praised the Government’s willingness to listen, learn, and act, especially in contrast to previous administrations.

“The last government said they wanted to help SMEs but rarely followed through,” said Beresford. “This government has engaged seriously with our ideas and delivered a practical, proportionate and deliverable set of reforms that will genuinely unlock opportunity on the ground.”

Wojtulewicz added that the proposals would give local plans the tools to allocate SME-scale sites, streamline regulatory processes, and create space for innovation in biodiversity, design, and construction methods:

“These changes will allow SMEs to do what they do best—build better homes, train local workers, and contribute to strong, resilient communities.”

A Defining Moment for the SME Sector

The NFB has campaigned for a ‘medium site’ definition for more than seven years, and this announcement marks a defining moment in the push to rebuild a diverse, competitive housing sector.

“This isn’t just a win for SMEs,” said Beresford, “it’s a win for the entire housing sector, because without small builders, you don’t have the skills pipeline, design diversity, or local responsiveness the industry—and the country—needs.”

Read more from the NFB here: https://www.buildnews.co.uk/nfb-opinion-piece-rayner-can-overcome-poisoned-housing-chalice/