The UK Government has unveiled a package of planning reforms designed to accelerate housing delivery by making it easier for small and medium-sized developers (SMEs) to build homes. The move is part of efforts to meet Labour’s target of 1.5 million new homes by 2029–30.
A key proposal includes delegating planning decisions for developments of up to nine homes and most minor technical applications to professional planning officers, reducing the role of local councillors in smaller cases. The aim is to streamline approvals and reduce delays. A new tiered system will categorise applications to determine whether they are handled by officers (Tier A) or referred to planning committees (Tier B).
Developments between 10 and 49 homes will be reclassified as medium-sized, benefiting from reduced costs and simplified biodiversity requirements. These sites will also be exempt from the building safety levy.
To address concerns around nature preservation, consultations will be launched on applying biodiversity net gain rules to minor, medium, and brownfield sites. Conservation groups have raised concerns about weakening environmental protections.
Financial support is also being ramped up. A £100 million accelerator loan scheme is being introduced to improve cash flow for SME developers, alongside a new National Housing Delivery Fund to be confirmed at the next spending review. This will provide access to long-term financing, including revolving credit facilities.
Homes England will release more land exclusively for small builders, while a new pilot programme in Bristol, Sheffield, and Lewisham will target unlocking smaller, underused sites.
Additionally, the Government announced £10 million for local councils to hire environmental specialists to speed up assessments and £1.2 million in PropTech funding to support small-site innovation using digital planning tools.
The changes are open for consultation under the upcoming Planning and Infrastructure Bill. The reforms are presented as an effort to reduce bureaucracy and eliminate longstanding barriers faced by smaller developers in a market traditionally dominated by large firms.
