Journey
SME housebuilder planning guide
Comprehensive planning guidance for small and medium housebuilders. Learn how to navigate the planning system efficiently, take advantage of small site easements, and manage S106 and environmental requirements proportionately.
What you will learn
This guide is specifically for SME housebuilders - developers building schemes of 1-50 homes. The planning system can seem designed for volume builders, but there are increasingly proportionate approaches available for smaller schemes.
By the end of this guide, you will understand:
- How site thresholds affect your planning requirements
- Small site easements that can reduce costs and complexity
- How to manage S106 negotiations proportionately
- BNG compliance options for smaller schemes
- When nutrient neutrality applies and how to achieve it
- How to discharge conditions efficiently
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Understand the threshold effects
Planning requirements change significantly at key thresholds. The most important are:
- 1-9 units (minor): 8-week determination, simpler documentation, often below affordable housing thresholds
- 10+ units (major): Under current law, major development starts at 10 dwellings - 13-week determination and full major development requirements
- 10-49 units (proposed medium tier): A government working paper (May 2025) proposes a medium sites category with proportionate requirements - not yet implemented, so these schemes remain major development for now
Planning for small sites (under 10 units)
Detailed guidance on minor development applications
Planning for medium sites (10-49 units)
The proposed medium sites category and proportionate requirements
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Navigate Section 106 proportionately
S106 obligations often determine whether a small site is viable. Understanding the legal framework helps you negotiate proportionate contributions.
Navigate Section 106 agreements
How to understand, negotiate, and manage S106 obligations
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Comply with biodiversity net gain
BNG applies to small sites from April 2024, but with easements. Understanding these can significantly reduce your costs.
BNG for small sites
Simplified BNG compliance for minor residential development
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Check nutrient neutrality
If your site is in one of the 27 affected catchments, you cannot get planning permission without demonstrating nutrient neutrality. There is no small site exemption.
Check if nutrient neutrality affects you
List of affected catchments and how to check your site
Nutrient neutrality compliance
How to achieve neutrality if your site is affected
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Plan for condition discharge
Getting permission is only half the battle. Condition discharge can delay projects significantly if not managed proactively.
Discharge planning conditions
Step-by-step guide to discharging conditions efficiently
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Know your options if refused
Not every application succeeds. Understanding your options helps you respond effectively.
Respond to planning refusal
Your options when planning permission is refused
Make a planning appeal
How to appeal to the Planning Inspectorate
Main takeaways for SME housebuilders
- Know your thresholds: The difference between minor (1-9) and major (10+) is significant - a proposed medium tier (10-49) may ease requirements if implemented
- Challenge disproportionate S106: Use the three tests to push back on excessive requirements
- Design-in BNG: It's cheaper than buying credits
- Check nutrient neutrality early: It can make or break site viability
- Programme condition discharge: Build time for this before starting work
- Build relationships: Good LPA relationships pay dividends across multiple applications