In June 2024, HFS published its Scotland’s SME Home Builders 2024: Data Review and Industry Insights report, with findings confiming that over one-third of housing delivery in rural and remote areas is undertaken by SME developers and that over 90% of SME development in the main urban centres is undertaken on brownfield sites.

The data also revealed an alarming reduction in SME home builder activity, with the proportion of homes sold by SMEs falling from around 40 per cent in 2017 to 20 per cent in 2023.

The new collaboration between HFS and VELUX (which provides design support and daylight visualisation tools to home builders) will see the delivery of events, workshops and research to bolster HFS actions to support Scotland’s SME home builders across 2025.

These include a series of SME workshops, including a flagship Business Development and Finance Day to support members and build links with partners to help SMEs grow their businesses as well as an update to the HFS’ SME Data Review and Insights Survey to provide the Scottish Government and stakeholders with vital evidence about the state of the sector, evidencing the need for innovative streams of financial and funding support for SMEs at all stages of development.

Announcing the partnership, HFS chief executive, Jane Wood, said: “SME home builders are a diverse and dynamic sector, significantly contributing to the economic and social wellbeing of communities across Scotland. However, they face many challenges in the current operating environment which jeopardise their very existence.

“It is a strategic imperative for HFS to secure an improved operating environment for Scotland’s SME home builders, particularly innovative finance solutions. They have a vital role in Scotland’s housing ecosystem, delivering high-quality, modern homes across all tenures, particularly in rural and urban brownfield settings, which must be nurtured and accelerated. 

“I am therefore delighted to have secured VELUX’s assistance to help us support Scotland’s SME home builders, enabling us to enhance our advocacy for them in what is both a pre-election and our 25th anniversary year.

“Our partnership will allow us to run dedicated events and publish new contextual data highlighting the need for urgent regulatory reform and action from the Scottish Government and other key stakeholders.

Highlighting the importance and contribution of Scotland’s SME home builders, Trevor Smith, national housing manager, VELUX, added: “At VELUX, we believe that homes should support high quality health and well-being outcomes. That’s why we are so excited about our partnership with HFS as this reflects our focus to promote healthier indoor environments through better daylight and ventilation.

“Scotland’s SME home builders proudly deliver a broad and diverse range of homes across the country to meet the needs of local communities. With natural light and fresh air fundamental to enhancing both comfort and security, we look forward to working with HFS members who help ensure every home is designed with well-being in mind. Let’s build more healthier homes, together.”