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Two new government initiatives set to encourage small developments

Construction costs of small scale developments will follow

Planning minister Brandon Lewis said– in a recent article published in The Construction Index (1.12.14)  – that due to the burden of developer contributions on small scale developers, affordable housing and tariff style contributions will not be sought for sites of 10-units or fewer.

Mr Lewis said: “By lowering the construction cost of small-scale new build housing and home improvements, these reforms will help increase housing supply. In particular, they will encourage development on smaller brownfield sites and help to diversify the house building sector by providing a much-needed boost to small and medium-sized developers.”

Funding opened up to SME house builders

The government is also providing £525m through the Builders’ Finance Fund (2015/16 to 2016/17) to provide development finance to unlock stalled small housing sites and opening up the Builders Finance Fund to support small building firms schemes, from five units in size upwards.

The Federation of Master Builders (FMB) Chief executive Brian Berry said: “The government’s decision to open up applications to the Builders Finance Fund to the very smallest house builders is going to make a real difference to our sector. We know that access to finance is the main barrier to SME house builders increasing their output and the fact that ministers have taken our advice, shows that government is committed to empowering small local builders and ensuring they can contribute to the much-needed uplift in new homes.”

Construction equipment hire market set to grow as a result

“This is good news for the construction equipment hire business,” adds David Elsdon of Enfield-based Mr Plant Hire, “SME builders are more likely to be looking at construction equipment hire, so we anticipate an increase in demand for plant hire across the board over the next couple of years as the effect of these new government initiatives kick in.

Mr Plant Hire Plc is a UK based construction equipment hire company supplying the building, maintenance, mechanical and electrical industries around Enfield and the London area. Mr Plant Hire’s comprehensive range of services includes powered access hire for London and lifting equipment hire for London, as well a full range of excavators and diggers.

Contact Mr Plant Hire for more information.  Our two hour response “Fast Quote Service” is available during office hours for quick and competitive pricing.

 To read the full article

www.theconstructionindex.co.uk

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