The National Planning Policy Framework, published last year and recently updated, identified the need for 87,992 new homes per year in London to meet demand. With ambitious targets across the country, the Government is prioritising large-scale developments and new towns in nearby commutable areas to help address the critical shortfall.

Yet while the intricacies of these developments go through mammoth planning processes, small sites across London and the UK remain critically undervalued.

Jerry Tate, Founder + Director here at Tate + Co, shared his thoughts with Housebuilder Magazine. To follow is Jerry’s article in full and the published piece can be found here.

The overlooked plots between buildings, derelict garages and unused corners of public land have the potential to reinvigorate communities and increase density in areas of high demand. Crucially, within the right framework, homes on these plots can be delivered far quicker than major masterplans, while transforming unsightly and underused brownfield land.

The scale of this opportunity is significant. In London alone, the London Strategic Housing Market Assessment (LSHMA) estimates that small sites could deliver up to 250,000 homes in a decade, nearly a third of London’s overall target^[1]. Yet the potential of these sites will only be realised if we rethink how the system works.

Knowledge and supply chain availability

There are a multitude of reasons why the delivery of small sites remains minimal, including the lack of contractors able to deliver these projects. Most small contractors currently prefer high-end domestic schemes rather than small housing developments, due to the narrower profit margins and complexity small sites bring.

Developing these sites requires a specific skill set. An overarching body to guide contractors and developers through the process, including mitigating the associated risks that comes with meeting planning rules, would provide essential support currently missing from the industry.

At a local authority level, knowledge sharing through academy/workshop sessions and online learning platforms would go a long way in educating contractors on best practices. Borough-wide surveys to identify knowledge gaps would serve as the basis for targeted workshops, to ensure that even smaller contractors can keep pace with rapidly evolving regulations.

Councils could also cluster small sites across their portfolio into a single delivery package, providing motivation for contractors to take on the work, with the safety net of a multi-phase project to improve viability.

Navigating the planning system

While many small-site applications receive consent, delivery is often stalled by disproportionate planning requirements. Smaller developers face the same challenges as large-scale housebuilders, meaning that small projects – even for 10 homes – encounter the equivalent barriers and reporting requirements as schemes of 100 homes.

Recent government reforms for SME housebuilders, such as easing Biodiversity Net Gain requirements for sites under 0.2 hectares, have been a positive step forward. However, small sites are still frequently assigned to the most junior members of the planning department who can sometimes lack the experience and confidence to go beyond a set tick-box approach.

With improved funding, planning departments could attract and retain experienced staff, assigning dedicated planning officers to small sites. Empowered to exercise nuanced judgement, these officers could go beyond traditional Planning Performance Agreements, maintaining an open dialogue between the planning officer and the land team of a developer throughout a project, preventing projects from stalling before work begins.

Funding and viability

Too often, a site’s viability is evaluated solely on immediate profitability. Shifting away from just monetary value and profit margins reveals the immense social, design, and environmental value these small schemes can offer in locations dotted across London. As the capital faces the worst housing crisis since World War II, sites should also be evaluated on the housing supply they bring to an area in need.

With rising costs and inflation, funding is a significant challenge across the housing market, but especially for smaller developers who are disproportionality affected. A government-backed fund dedicated to small sites, assessing value across social, environmental and economic outcomes, would unlock delivery while supporting long-term public benefit.

The opportunities                                                                                                                                    

Small sites support placemaking within existing neighbourhoods, where infrastructure is already in place, meaning developers do not have to spend money and carbon on delivering new roads, infrastructure and facilities like schools and healthcare centres.

They are also more flexible to fill gaps in specific housing needs. In an area with too many three-bedroom homes, a block of one-bedroom apartments for young professionals or later living homes could fit into an existing neighbourhood, supporting young people or downsizers wanting to stay within the area they’ve lived in for years.

With three years until the next election and a way to go to meet the target of 1.5 million homes, delivery models must diversify. While the industry could theoretically deliver lots of schemes of 15 homes, we may struggle to deliver even a handful of 500 home developments.

As it stands, small, undeveloped sites are a blot on the landscape. When approached creatively, they offer an opportunity to fill the gaps in our neighbourhoods, while delivering thousands of much-needed homes across London and beyond.