{"id":38346,"date":"2025-06-02T14:51:57","date_gmt":"2025-06-02T14:51:57","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/?post_type=knowledge&p=38346"},"modified":"2025-06-04T14:21:47","modified_gmt":"2025-06-04T14:21:47","slug":"new-planning-reforms-for-housebuilding","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/trades\/new-planning-reforms-for-housebuilding\/","title":{"rendered":"Planning reforms to reduce red tape for builders"},"content":{"rendered":"\n

Sweeping reforms to the planning system could make housebuilding quicker and simpler for tradespeople. As a part of the government\u2019s Plan for Change, they\u2019re investing in small businesses to help them achieve their goal of building 1.5 million homes by 2029.<\/p>\n\n\n\n

And with millions of pounds set to be invested into the growth of smaller firms, plus more funding for construction apprenticeships, the industry could receive a major boost.   <\/p>\n\n\n\n

How is the planning system for housebuilding changing?<\/h2>\n\n\n\n

The government says the current planning system and regulations for housebuilding are overcomplicated and time-consuming. And with a focus on unlocking the potential of small builders, it plans to reduce red tape and make it easier to get jobs off the ground. <\/p>\n\n\n\n

The government is proposing five key initiatives<\/a> as part of its Plan for Change. <\/p>\n\n\n\n

1. Faster decisions for small building projects\u00a0<\/h3>\n\n\n\n

Whether you\u2019re building 10 houses or 100 houses, the planning system is the same complex process. To change this, the government is proposing a simpler planning process for house building projects under 10 homes.<\/p>\n\n\n\n

Biodiversity Net Gain (BNG) is an initiative that makes sure building projects have a positive effect on the biodiversity in the area they\u2019re developing. The government plans to ease the BNG requirements for smaller projects. <\/p>\n\n\n\n

Under the new plans, smaller building jobs would be approved by expert planning offers instead of a planning committee. It’s hoped this will streamline what can be a drawn-out process. <\/p>\n\n\n\n

2. A new \u2018medium site\u2019 category\u00a0<\/h3>\n\n\n\n

A \u2018medium site\u2019 category for the planning system would see a new set of rules for projects building between 10 and 49 homes. With the aim of making the process simpler and less expensive. <\/p>\n\n\n\n

The Building Safety Levy is a tax on new residential property projects that funds safer building practices on new and existing homes. The government is proposing a potential exemption from the Building Safety Levy for \u2018medium site\u2019 developments. <\/p>\n\n\n\n

Plus, the proposals include a simplified approach to Biodiversity Net Gain for \u2018medium sites\u2019 to help make environmental targets more achievable.  <\/p>\n\n\n\n

3. More land and financing options for SMEs<\/h3>\n\n\n\n

Making government contracts more accessible to smaller businesses is an aim of the government. The Procurement Act 2023<\/a> laid the groundwork for making public sector contracts easier to win for small businesses. And Homes England (the government\u2019s housing and regeneration agency) is looking to go a step further by releasing more land exclusively for SMEs. <\/p>\n\n\n\n

There\u2019s also a new National Housing Delivery Fund to \u2018support long-term finance options, such as revolving credit facilities and lending alliances\u2019, according to the government. The details of the fund will be confirmed during the next spending review.      <\/p>\n\n\n\n

4. A plan to free up small sites for SMEs<\/h3>\n\n\n\n

Brownfield sites, patches of land that had previously been developed but are now abandoned, will be freed up for small builders. The government is calling this the Small Sites Aggregator and it will be trialled this year in Bristol, Sheffield, and the London Borough of Lewisham. <\/p>\n\n\n\n

The aim is for these brownfield sites to be turned into social housing to try and tackle the housing crisis in these areas.<\/p>\n\n\n\n

5. Increased funding for small builders\u00a0<\/h3>\n\n\n\n

To support smaller firms in managing these projects, the government is proposing new funding options for housebuilding projects: <\/p>\n\n\n\n