United Trust Bank has joined forces with the Federation of Master Builders to support the latest edition of its Guide to Becoming a Small Housing Developer, aimed at helping small construction firms move into residential development.
Produced in partnership with Openreach and supported by several leading industry organisations, the 2025 guide offers practical advice for builders looking to grow into developers. It sets out the steps needed to assess, plan and complete small housing projects, and provides insight into securing finance, navigating planning, and incorporating sustainability.
The launch comes at a critical time for the housing sector. The UK remains well short of its target to deliver 1.5 million new homes by 2029 — a rate of building not seen since the 1960s.
United Trust Bank said its sponsorship of the guide reflects its commitment to supporting SME developers and to strengthening the diversity and resilience of the housing market.
CHALLENGES
Recent findings from the FMB’s House Builders’ Survey underline the challenges facing smaller builders. More than half cite the planning system as the biggest barrier to delivery, while six in 10 report difficulty finding suitable small sites. Access to finance also remains an issue, with 42% struggling to secure funding.
Despite these obstacles, the survey suggests many smaller firms want to diversify into affordable, community-led and sustainable housing if the barriers can be reduced. The updated guide has been written to help them do just that, with straightforward explanations and step-by-step advice.
Adam Bovingdon, head of property development at United Trust Bank, said: “United Trust Bank is proud to sponsor this important guide, developed in partnership with the Federation of Master Builders, to help aspiring housebuilders take their first confident steps into residential development.
“In a market where just 9% of new homes are delivered by SME developers — down from around 40% three decades ago — we urgently need to rebalance the sector and empower smaller builders to thrive.
“The current housing crisis won’t be solved by relying solely on large housebuilders. We need a diverse ecosystem of developers, especially those rooted in their communities, who can deliver quality homes whilst providing meaningful employment and tax receipts.
“That means removing barriers — from reforming the planning system and streamlining regulations for smaller schemes, to introducing an SME-focused ‘Help to Buy’ initiative tailored to their needs.
“This guide is a practical tool for builders ready to make the leap into development, and for those already on the journey, it offers insights to help them grow sustainably. At UTB, we’ve built long-term partnerships with ambitious SMEs, backing them with responsive funding and specialist expertise.
“We’re committed to helping this vital part of the sector flourish and believe that with the right support and imagination, small developers can become the driving force behind the next wave of UK housebuilding.”
Chris Carr, president of the Federation of Master Builders, added: “Back in the late 1980s, small builders delivered over 40% of new homes in this country. Today, that figure has fallen to less than 9%. That’s not just a statistic — it’s a sign that something has gone badly wrong.
“This guide has been created by small and micro developers for those looking to take their first steps into small-scale housing development. Written in plain English, it breaks the process down into clear, practical stages — from site finding and planning to construction and sales.”
