State of Play Report 2026
November 3
7 min read
SME housebuilders play a vital role in delivering the homes the UK needs, but continue to face significant barriers to growth. The State of Play report 2026, produced by Close Brothers Property Finance, the Home Builders Federation (HBF), and Velux, draws on one of the most comprehensive surveys of SME housebuilders to explore the key challenges holding them back and what is needed to support the sector’s future growth.
The latest report findings
63% of SME housebuilders we surveyed have delayed progressing a site or put work on hold
59% of respondents have reduced the number of new sites they acquire
41% of respondents have made redundancies or reduced their contracted workforce
67% of respondents say the availability of viable small and medium-sized sites has worsened over the past year
41% of respondents expect to bring forward fewer sites over the next 12 months
The research also points to a fundamental concern around the cumulative cost of development. 72% of respondents said they wished politicians better understood the misconception that land values can absorb unlimited policy and regulatory costs, while 71% highlighted the cumulative impact of planning obligations, taxes and regulation on viability.
Download the State of Play Report 2026/27 here
There is no doubt that the current market is one of the most challenging in decades. SME housebuilders tell us the numbers are no longer stacking up and they’re having to put sites on hold, buy less land and cut jobs. Measures such as Your First Home are welcome but until the costs being piled on to every new home are tackled, more SMEs will be stepping back.
Phil Hooper, CEO, Close Brothers Property Finance
If you have a question about this report, or would like to discuss future research, contact Lucy Johnston at Lucy.Johnston@CloseBrothers.com
Authored by
Phil Hooper
Chief Executive Officer, Property
