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Turning Around Housebuilding SMEs Might Be The Key To Recovery In The Sector

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Even as governments have repeatedly claimed a need to invest more in building homes in the UK, a new study by Lendinvest reveals that small and medium companies (SMEs) in the housebuilding sector have been failing at alarming rates.

The number of SMEs in the real estate sector is only one-fifth of what it was in the 1980s, and they are responsible for only one out of every eight homes built today, whereas before 1990 they were responsible for three homes out of every eight.

Having a higher percentage of homes built by the largest companies means they face less competition, and thus can afford to keep their houses more expensive and less accessible to the average potential homeowner.

The Lendinvest study pegs the tax code, paucity of available land and lack of institutional investment as key elements in hurting the market for SMEs, as well as primary targets for potential reform. 

Related Topics: Lendinvest, Christian Faes, SMEs