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For years, planning and building safety policy has effectively been written for two audiences: the large volume housebuilder and the single-plot self-builder. The developer building somewhere between ten and fifty homes — the backbone of UK SME housebuilding — has been squeezed by rules designed for someone else. That may be about to change. A proposed “medium site” category for developments of 10 to 49 homes is being discussed, and if it lands it could reshape the compliance and cost picture for exactly the kind of developer this site is written for.
Why a new category is being considered
The policy logic is straightforward: proportionality. SME developers have been closing or consolidating for years, and one consistent complaint is that they shoulder compliance obligations — planning conditions, safety requirements, and levies — scaled for organisations many times their size. With a significant share of England’s future housing expected to sit in smaller and mid-sized schemes, there is a growing recognition that the mid-tier developer needs a regime that fits. A dedicated medium-site category is the mechanism being floated to deliver that.
What is actually being proposed
The detail is still being shaped, so treat specifics with caution, but the direction of travel points to a few likely features aimed at developments of 10 to 49 homes:
- Proportionate compliance costs calibrated to the scale of a medium site rather than a major scheme.
- Potential relief from certain levies, with the Building Safety Levy among those under discussion for smaller developers.
- A more streamlined route through parts of the planning and approval process that currently treat all non-trivial schemes alike.
The timing and final shape remain uncertain. But the potential impact is material, because for a scheme of this size even a modest change in per-unit compliance cost can be the difference between a viable appraisal and a shelved one.
How to get ahead of it
You cannot plan a project around a policy that has not been finalised, but you can position yourself to move quickly and to benefit whichever way it settles. The developers who will gain most are the ones whose project governance is already tight, because a proportionate regime rewards clarity and punishes disorganisation.
- Know your unit thresholds. Understand exactly where your scheme sits relative to the 10 and 49 boundaries, and how phasing or plot numbers could move you across a line that starts to carry cost consequences.
- Tighten your project execution planning. A proportionate regime still demands evidence. A clear project execution plan makes it far easier to demonstrate control without a large team.
- Get your appointments right early. If you are a residential developer, the way you set up your design team matters — our guide to design management in the residential sector covers the fundamentals.
- Watch the consultation, not the headlines. The workable detail will be in the technical consultation and secondary legislation, not the press release.
The bottom line
A medium-site category would be one of the more genuinely helpful policy shifts for SME housebuilders in years — but only for those ready to use it. The groundwork is the same groundwork that makes any scheme run better: know your numbers, plan your delivery, and keep your project governance tight. Do that now, and you will be positioned to move the moment the detail is confirmed.
Planning a scheme of 10 to 49 homes and want your project governance ready for whatever the new rules bring? JC Virtual PMs supports SME developers with project setup, planning, and delivery. Get in touch to talk through your scheme.
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