The National Federation of Builders (NFB) have released a report examining the government’s proposed new medium site and its potential shortcomings for SMEs
The NFB’s report, Size Still Matters: Dwellings Matter More, applauds the proposition of medium-sized construction sites of between 10-49 homes, but takes issue with one particular aspect.
The proposed new size, as it currently stands, would be defined as up to a hectare in size, which many SME housebuilders argue is not sufficient.
Many sites are forced to be more than a hectare
The NFB’s report highlights that, due to Local Planning Authorities (LPAs) having set their own locally acceptable density policies, there is no need to define a medium-sized construction site as a hectare.
Beyond this, due to more policies involving drainage, biodiversity net gain (BNG), grid, sewerage, and active travel, many sites that could be considered smaller often are forced to expand beyond a hectare in size.
The report voices concerns that SME builders could be forced to miss out on the benefits that a medium-sized construction site could bring, such as ensuring that planning requirements suit the project better, rather than just distinguishing between “little or large” projects, making BNG requirements easier to navigate, potentially excluding these sites from the Building Safety Levy and transparency goals, and determining planning approval or appeals more quickly.
“An area based threshold penalises growth aspirations outside London”
Rico Wojtulewicz, head of policy and market insight for the NFB and House Builders Association (HBA), said: “We are incredibly grateful that the Government has listened to industry by recognising the dwelling numbers that SMEs typically deliver on single sites. However, the inclusion of a measured area threshold risks excluding most SMEs from the proportionate planning reforms associated with a medium-sized site, and so our report ‘Size Still Matters’ illustrates why that is and why it is not needed.”
Paul Knox, MD at Pearce Homes, said: “An area-based threshold penalises growth aspirations outside London, and the growth aspirations of all SMEs outside of London. 49 units is 49 units wherever they are built. 49 flats sit on a small land parcel, 49 houses sit on a much bigger land parcel.”
Michael Parinchy, construction manager at ProBuild 360 Ltd and HBA Chair, said: “With minimum densities, housing mix policies, and other obligations like BNG, highways, SUDs etc, hectares, or other area measurements, are not a good metric to determine site size category.
“For SMEs, the commercial viability of a development is calculated using plot numbers, so to use other thresholds and measurements would be a misunderstanding of how things work at this scale and counterproductive to the real-world activation of the SME housebuilding sector.”
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