As part of its overall strategy, the Ministry of Housing, Communities and Local Government (MHCLG) has promised to provide much-needed small builder support by improving housing market competition and making it easier for these smaller firms to grow.
This pledge was introduced in the wake of the MHCLG departmental plan overhaul, which occurred only six months after the last edition was initiated.
The Ministry’s top priority with this plan is to deliver the homes that the UK needs by meeting certain targets, such as building a million homes by 2020 and half a million more by 2022. It believes that higher levels of productivity and competition in the construction industry, including innovative technologies and small builder support, will ensure that it gets there.
To accomplish this goal, the MHCLG spotlighted certain primary initiatives, two of which target builders.
- Improve competition and productivity in the housing market, making it more accessible to smaller builders and those who favour efficient and innovative methods while supporting the efforts of the Department for Business, Energy and Industrial Strategy (BEIS) and Department for Education (DfE) to support the delivery of construction skills; and
- Target SMEs, innovators, and custom builders with short-term loan finance via the Home Building Fund as well as provide new guarantees to support housebuilding, such as SMEs.
Chaired by Sir Oliver Letwin, the independent review has already revealed concerns regarding the way that major housebuilders control the market and why it takes so long for them to deliver housing once planning permission has been granted.