October 2020
Featured in this insight: Business & enterprise
Nearly two-thirds of SME house builders have seen fall in growth projections, due to Covid-19: A survey of SME house builders by the Home Builders Federation (HBF) has found that almost two-thirds (65%) have seen a fall in growth projections due to the coronavirus pandemic.
The survey in conjunction with Close Brothers Property Finance polled respondents across the UK finding that almost two-fifths (39%) of those who reported a fall in projections are down 10–50%, while more than a quarter (26%) said they have seen their company's projections fall by up to 10%.
Around three-quarters (73%) of respondents polled in the survey feel they are limited by the lack of resource at their local authority's planning department – and will face more difficulties when the stamp duty holiday comes to an end in 2021 and a new programme with regional caps is introduced to replace the current Help to Buy scheme.
More than 8 out of 10 SMEs polled said that planning delays and getting permission are a barrier to housing development over the next year, however many respondents were not as concerned over finances, with development finance perceived as a barrier by just two-fifths (41%) – the lowest barrier given to growth.
When asked about their ease of accessing the government's Coronavirus Business Interruption Loan Scheme (CBILS) funding, more than half (53%) said they had tried to access support, however, just 44% had been able to access the loan.
Frank Pennal, CEO at Close Brothers Property Finance, said: “The threat to SME house builders following the Covid-19 pandemic is clear, and we now have to act to reverse the decline of this vitally important part of the housing market."
View more of our sector specific insights: Business & enterprise
