Small Sites, Big Opportunity: Why Rayner’s Plan Could Finally Unlock Social Housing at Scale

By Gaynor Tennant

This week’s announcement from Deputy Prime Minister Angela Rayner offers a long-overdue shift in support for the very builders who could hold the key to fixing the UK’s housing crisis—our small and medium-sized

Small Sites

The Plan for Change goes beyond platitudes. It’s about unlocking small sites, stripping back bureaucracy, and finally making space for social housing to thrive where it’s been most needed—and most neglected.

For years, smaller builders have been hamstrung by one-size-fits-all policy, forced to meet complex planning and environmental requirements designed for volume builders. That’s meant fewer homes, wasted land, and missed opportunities in the very communities that need investment most.

What’s Changing?

Rayner’s package aims to break that cycle. Key measures include:

• Fast-tracked planning for sites of up to 9 homes, with scaled-back Biodiversity Net Gain (BNG) rules and approval handled directly by planning officers.

• A new “medium site” category for 10–49 homes, exempt from the Building Safety Levy and subject to simplified environmental expectations.

• Land releases from Homes England specifically targeted at small builders—crucial for unlocking land that’s often overlooked by larger developers.

• A £100m SME Accelerator Loan scheme and a new National Housing Delivery Fund offering long-term finance including revolving credit.

• A Small Sites Aggregator pilot launching in Bristol, Sheffield and Lewisham, aimed directly at bringing awkward brownfield plots into development, particularly for social rent.

• Reforms to planning committees so that routine and minor applications won’t be tied up in months of unnecessary debate.

The announcement also includes £10m for councils to fast-track environmental assessments and £1.2m in PropTech funding to help SMEs make better land and infrastructure decisions.

The potential impact on social housing is huge. Across the UK, there are thousands of small, underutilised plots that could host homes for families stuck on waiting lists or trapped in temporary accommodation. But to date, those sites have been economically unviable for smaller developers—burdened with costs, red tape, and zero support.

By cutting red tape and unlocking finance, this plan removes the barriers that have historically made social housing delivery on small sites impossible. The Small Sites Aggregator model, in particular, could be a game-changer—if it’s scaled.

It’s about more than house numbers. It’s about spreading opportunity, enabling local builders to deliver homes rooted in their communities, and tackling both housing need and regional inequalities in one move.

SMEs used to build over 40% of new homes. Now it’s less than 10%. Reversing that decline isn’t just about economics—it’s about resilience, diversity, and impact.

This plan might not solve everything. But it’s finally asking the right questions and backing them with action.

So here’s the challenge to the sector: Let’s be ready. Let’s make sure these reforms aren’t wasted. And let’s prove that small sites, done right, can deliver the social housing this country desperately needs.