Last updated: 20 Mar 2026
Measuring SME home builder sentiment
Track changes in SME home builder confidence and assess the barriers to housing delivery and their influence on investment decisions over time.
HBF’s SME Sentiment Survey has been designed to track changes in SME home builder confidence over time and provide robust evidence to Government and policy makers on the need to address the key barriers constraining housing delivery.
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Latest results
SME home builders are cautiously optimistic about delivery
Our first SME Sentiment Survey shows that while many small- and medium-sized home builders are looking to increase housing delivery in the coming months, significant market and viability pressures are constraining their ability to invest in and start new sites.
While 41% of SME builders expect to increase the number of homes they start building in the next three months, just 28% of respondents reported a positive housing market outlook, and 37% had a negative view of what’s in store - with smaller builders notably more pessimistic.
Market conditions are suppressing development activity
However, housing market sentiment varies considerably across regions, although caution is evident in most parts of the country. London reports the weakest outlook, with 57% of developers expressing a negative view and just 14% reporting a positive outlook.
The survey results indicate that prevailing market conditions are suppressing development activity among SME home builders, with a substantial proportion delaying new site starts. Seven in 10 respondents (70%) reported that market conditions are causing caution, including nearly a quarter (24%) who said conditions are causing significant caution or delaying starts altogether, and 46% reporting moderate caution.
By contrast, only 13% said current conditions are encouraging expansion, and none reported that they are encouraging significant expansion.
Buyer confidence is a key barrier
To contextualise the findings on market sentiment, SME developers were asked to select the three most significant demand-side and supply-side constraints affecting their ability to deliver new homes.
On demand side constraints, nearly two thirds of respondents cited low buyer confidence (63%) and housing market conditions (61%) among their top three constraints, making them the most significant demand side barriers. This was followed by affordability (44%).
“The Government needs to stimulate the FTB market as a matter of urgency. This in turn will simulate the overall housing market and give us some confidence to buy and develop new sites” – HBF Sentiment Survey Respondent
The planning process continues to cause delays
In terms of supply side constraints, planning delays emerged as the single greatest obstacle. More than three quarters of respondents (76%) cited delays in the planning process as one of their top three constraints, highlighting the persistent challenges SMEs face in securing timely planning decisions. Viability pressures were also widespread, identified by 57% of respondents, reflecting the cumulative impact of rising costs, policy requirements, and market conditions on scheme deliverability. The cost and availability of land was also a key obstacle for 42% of respondents.
“Viability and red tape remain the largest challenges for the business.” – HBF Sentiment Survey Respondent
View previous results
SME Developer Sentiment Survey March 2026
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