NFB claims Letwin Review overlooks SMEs

NFB claims Letwin Review overlooks SMEs

The NFB has welcomed the Letwin Review’s conclusion on the skills challenge, the benefit of splitting large sites, and the importance of small sites but says it overlooks best practice already carried out by SMEs.

The review also rejected criticisms of landbanking and has welcomed calls from industry bodies to diversify the housing market and speed up house building on large sites.

Small and medium-sized (SME) house builders are said to have previously told the Government on multiple occasions that large sites which deliver standardised design, do not lead to good master planning and sustainable property sales.

The Review stated the need to build on sites of all sizes, as well as identified the lack of skilled workers as a major barrier to house building.

The Letwin Review has made the following recommendations, suggesting they come into force in 2021:

  • Introducing new planning and funding rules for large sites in high housing demand areas;
  • Forming a national expert committee to adjudicate disputes;
  • Creation of a ‘flash’ skills programme to be delivered by major house builders;
  • Increasing compulsory purchase order (CPO) powers.

While the NFB agrees with Letwin on the challenges and conclusions, the Review focuses almost entirely on large sites and volume developers and, therefore, overlooks best practice carried out by SMEs.

The NFB has said that SMEs have a long history of building diverse housing on sub-divided large sites. They reportedly tackled Britain’s post-war housing crisis in the 1950s and built the numerous 1980s estates. Therefore, planning policy may not need to change to promote diverse housing types.

SMEs train 66% of construction apprentices, employ within 15 miles of their head offices, and are the predominant rural employer. NFB states that excluding them from any ‘flash’ skills programme would be highly imprudent.

Statistics have also shown a reliance on large sites and not small or medium sites to meet housing need. With the Government keen to encourage greater housing diversity, the industry should redouble efforts to enable more small sites and infill.

Richard Beresford, Chief Executive of the NFB, said: “The Letwin Review recognises that developers would rather build and sell, than not build at all. Its recommendations will help build sites more quickly. It also needs fine tuning to build the right homes and train skilled workers in the right places.”

Rico Wojtulewicz, Senior Policy Advisor for the House Builders Association (HBA), added: “SMEs have a bigger part to play in implementing Letwin’s recommendations than the Review itself concludes. We welcome the review period before the Government publishes its final response.”

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