The Scottish Government has sent a strong message to planning authorities this week: adopt a culture of proportionality when working with small and medium-sized housebuilders.
For too long, smaller developers, many of whom are the lifeblood of local housing delivery, have been held back by overly complex planning demands, lengthy delays, and costs that threaten project viability.
Now, ministers are calling for a shift. In a joint letter to local authorities, Housing Secretary Màiri McAllan and Minister for Public Finance Ivan McKee emphasised the vital role of SMEs in tackling Scotland’s housing emergency.
From rural developments to brownfield regeneration projects, smaller firms bring agility, innovation, and a deep understanding of local needs. As modular homebuilders, we at Ardbeg Modular see that every day, the ability to deliver quality homes quickly and sustainably depends on fair and efficient planning.
But according to many SME builders, current processes are anything but. Excessive documentation, costly consultancy requirements, and unclear timelines often make small-scale housing projects financially risky.
The government’s message is clear: planning requirements must be essential, proportionate, and timed appropriately. Authorities are being encouraged to question every request, why information is needed, what is essential, and when it’s most appropriate to ask for it.
This guidance builds on the work of the Proportionality of Assessment Short Life Working Group, which identified best practice for streamlining planning without compromising quality or community input.
To support local authorities, the National Planning Hub will also be prioritising housing delivery, providing surge capacity and specialist expertise (such as archaeological advice) when local resources are stretched.
This autumn, the government will launch a public consultation on planning reforms aimed specifically at supporting SME builders. Alongside that will come fiscal and legislative proposals designed to incentivise, and, where needed, compel, faster, more efficient housing delivery.
An Action and Implementation Plan is also due by the end of 2025, tackling wider regulatory barriers across housing and other key sectors.
For modular and offsite builders, this could be a turning point. Proportional planning creates space for innovation, allowing modern methods of construction to demonstrate their speed, sustainability, and cost-effectiveness without being held up by outdated processes.
At Ardbeg Modular, we believe the future of housing depends on collaboration between local authorities, government, and the industry. Removing unnecessary barriers for SMEs isn’t just good policy, it’s essential if Scotland is to meet its housing needs and achieve net-zero goals.
As Ms McAllan and Mr McKee put it: “Our objective is that Scotland come through and out of the housing emergency. This is dependent on a facilitative planning system which is efficient and effective and in which unnecessary delays are avoided.”
We couldn’t agree more.