The NHBC Foundation's report, 'Small house builders and developers: current challenges to growth', states out of almost 500 small firms, more than a third (38%) are waiting over a year for council planning approvals, while nearly 80% have experienced a large increase in planning-related fees over the last two years.
In addition, the lack of available land at a suitable price has started to become more of an issue for 37% of respondents.
The number of active house-building small firms is also still on the decline, accounting for 12% of market share in 2015 compared with 28% in 2008.
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However, despite 20% of firms concerned about the availability of finance, more small builders have started securing finance from banks or private sources. In addition, 58% of respondents were optimistic about the future of the industry with two thirds anticipating an increase in the number of homes they would build over the next two years.
NHBC Head of Research and Innovation, Neil Smith, said: "While the planning process is recognised as a necessary control, small house builders and developers continue to express considerable frustration with it.
"The increasing complexity, time taken to achieve a decision, and the unpredictability and inconsistency within the planning process are slowing the delivery of new homes and, in some cases, causing companies to leave this market."
The report also contains a number of recommendations by the NHBC Foundation for government and industry to address, such as increasing the availability of smaller sites that could accommodate up to 10 homes.
Mr Smith continued: "Greater certainty and more standardised approaches, clarity concerning the fees and tariffs, coupled with a more responsive service from planning departments would increase predictability and significantly help to speed up the process, thereby increasing the number of homes built."
(LM)
