Homes for Scotland (HFS), the representative body for the majority of new home builders across all tenures, has announced a partnership with VELUX to bolster the operating environment for small and medium-sized enterprise (SME) home builders.

The collaboration seeks to support the growth and sustainability of this crucial sector, which has experienced a significant downturn in activity since 2017.

HFS's 'Scotland's SME Home Builders 2024: Data Review and Industry Insights' report, published in June 2024, highlighted the vital role of SMEs, revealing that they deliver over a third of new homes in rural and remote areas and over 90% of SME development in major urban centres occurs on brownfield sites. The report also indicated a concerning decline in SME activity, with their share of homes sold falling from approximately 40% in 2017 to 20% in 2023.

The new partnership between HFS and VELUX, a provider of design support and daylight visualisation tools for home builders, will involve the delivery of events, workshops, and research throughout 2025 to support HFS's efforts on behalf of Scotland's SME home builders. Key initiatives include:

A series of SME workshops, culminating in a flagship Business Development and Finance Day aimed at supporting members and fostering connections with partners to facilitate business growth.

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An updated HFS SME Data Review and Insights Survey to provide the Scottish Government and other stakeholders with crucial evidence on the sector's current state, underscoring the need for innovative financial and funding support for SMEs at all stages of development.

Jane Wood, Chief Executive of HFS, announced the partnership, stating: "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 eco-system, 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."

Trevor Smith, National Housing Manager at VELUX, emphasised the importance of SME home builders and the partnership's focus on well-being: "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."