Backing SME builders to deliver more homes

Increasing housing supply remains one of Ireland’s most significant challenges. The Government’s recent housing plan, Delivering Homes, Building Communities 2025-2030, set out challenging delivery targets in the years ahead, and achieving these targets will require a sustained increase in housing output across every region of the country.

While larger developers will continue to play an important role, small and medium-sized builders and developers also have a vital contribution to make in helping meet housing demand and delivering homes across Ireland.

Many of these builders are deeply embedded in their local communities, bringing forward developments in locations that may not attract larger housebuilders. Supporting these businesses to grow and increase delivery capacity represents an important opportunity for housing supply.

Recognising this, Home Building Finance Ireland (HBFI) commissioned KPMG to undertake a detailed study of the residential development sector. The resulting report, The Scaling Challenge, combined extensive market analysis with direct engagement through surveys and focus groups with builders and developers across Ireland. The objective was to better understand the barriers facing builders and identify measures that could support increased housing delivery.

One of the key findings of the report was the fragmented nature of Ireland’s residential development sector. While larger developers account for a significant proportion of housing delivery, many smaller builders are delivering one project at a time and have ambitions to expand their activity, take on multiple sites, and deliver more homes. Surveys and focus groups confirmed a strong appetite for growth across the sector.

The research identified a number of barriers that can make it difficult for SME builders to scale their businesses and deliver more homes. These included planning uncertainty, infrastructure constraints, access to suitably serviced land, and access to development finance. While many builders demonstrated strong ambitions for growth, the report highlighted the challenges involved in progressing from single-site delivery to operating across multiple projects simultaneously. Through surveys and focus groups, developers consistently highlighted the need for a more supportive environment that would enable them to grow sustainably and contribute more significantly to housing delivery.

These findings have directly informed HBFI’s response.

As the State-backed lender focused on supporting viable residential development projects, HBFI’s role extends beyond simply providing finance. A key objective is to make the funding process more accessible and to support builders through each stage of their development journey.

One of the most important elements of this response has been the strengthening of HBFI’s regional engagement model. HBFI’s business development team operates across Ireland and works directly with builders, developers, advisors, local authorities, and other stakeholders in their local areas. This regional presence allows HBFI to engage with potential borrowers in a practical and accessible way while building a strong understanding of local markets. HBFI’s business development team regularly meets builders and developers on-site and in their local communities, providing an opportunity to discuss projects at an early stage and understand funding options before a formal application is submitted.

For many builders, particularly those accessing development finance for the first time, being able to speak directly to a local HBFI representative can be invaluable. Rather than expecting builders to travel to Dublin or navigate the process remotely, HBFI’s business development managers are available to meet potential customers on-site, visit development locations, and engage with borrowers in locations that suit them. Whether the discussion takes place on a construction site or over a coffee in a regional town, the focus is on understanding the project, answering questions and providing practical guidance from the outset.

This relationship-led approach helps builders understand the funding process, identify information requirements early and prepare stronger applications. For those new to development finance, early engagement can reduce uncertainty and build confidence.

In addition to enhanced regional engagement, HBFI has introduced practical measures to address challenges raised by SME builders. These include a simplified legal process for certain borrowers, helping to reduce complexity and improve the customer experience. Reduced project monitoring costs have also been introduced for eligible smaller developments, helping to lower some of the upfront costs associated with progressing projects. For qualifying schemes of 10 homes or fewer, HBFI contributes towards project monitoring costs, providing additional support for smaller-scale developments.

Recognising that builders also want easy access to information and guidance, HBFI recently launched a dedicated SME Hub. The Hub provides a single point of access for first-time and experienced borrowers, offering practical guidance, tools, resources, and information on the supports available from HBFI. It is designed to complement the support provided by the business development team and make it easier for builders to engage with HBFI at a time and pace that suits them.

These initiatives form part of HBFI’s broader commitment to supporting viable residential development projects and housing delivery across Ireland.

There is no single solution to Ireland’s housing challenge. However, the findings of The Scaling Challenge clearly demonstrate that SME builders and developers have an important role to play in increasing housing supply. By combining development finance with local engagement, practical support, and simplified processes, HBFI is focused on helping builders overcome barriers, scale their businesses, and deliver more homes in communities throughout Ireland.

Learn more about HBFI’s supports for SME builders and developers:

W: www.hbfi.ie