A new survey captures the state of the UK’s SME housebuilding sector as geopolitical uncertainty and the UK macroeconomic environment continue to weigh on the market
The seventh annual SME homebuilders survey has been created by Close Brothers Property Finance, the Home Builders Federation (HBF) and VELUX.
SME housebuilders will be asked to share their views on the challenges and opportunities facing their businesses, with the results informing the State of Play report whose findings have previously been presented at Parliament.
“Small and medium home builders have a vital role to play in meeting the Government’s housing ambitions, but many continue to face significant challenges, from planning delays to rising regulator costs to wider viability pressures,” stated Neil Jefferson, chief executive of the HBF.
“The State of Play survey is an important opportunity for SME builders to share their experiences and help ensure that policymakers understand the barriers affecting delivery. If Government wants SMEs to help increase housing supply, it must create the conditions that allow them to grow and invest with confidence.”
Economic challenges plague SME housebuilding sector
The survey launches at an acutely challenging time for the sector, with the prospect of significant interest rate cuts being put on hold given the current geopolitical environment.
Conflict in the Middle East has driven energy prices higher and reignited inflationary fears, putting further pressure on scheme viability, whilst higher mortgage rates have dampened demand for new homes.
Phil Hooper, chief executive officer of Close Brothers Property Finance, explained: “There’s no doubt that SME housebuilders are continuing to navigate a challenging environment, with a slower sales market alongside ongoing geopolitical and inflationary pressures.
“However, this is a sector that has demonstrated resilience time and again. We’re proud to be advocating on behalf of SMEs, helping to ensure their voice is heard.”
Key themes explored in this year’s survey
Key themes from this year’s survey include:
- Viability and market conditions – The survey addresses the extent to which viability pressures are impacting SMEs’ ability to deliver new homes, as well as the impact of affordability constraints amongst buyers on demand for new homes.
- Supply chain – In light of current global events, respondents are asked to provide insight into changes in materials costs and the impact of broader supply chain pressures.
- Land supply and planning – The survey explores whether availability of viable small and medium sites is improving or deteriorating, as well as what further action the Government could take to improve the planning process for SMEs
- Business sentiment and political understanding – SME housebuilders are asked to state the top three things they most wish politicians better understood about the housebuilding industry, as well as share the actions they have been forced to take in response to adverse market conditions.
The State of Play survey will close for responses on 30 June 2026. The survey takes around 7 minutes to complete, and responses are completely anonymous.
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