Housing Secretary and Deputy Prime Minister Angela Rayner has called for smaller housebuilders to play a larger role in addressing the UK’s housing shortfall.

During a visit to a development site in Didcot, Oxfordshire, Rayner outlined a series of measures intended to support smaller firms and encourage more timely development of land. She also suggested the introduction of penalties for developers who delay building on sites with planning permission.

Rayner said: “Smaller house builders must be the bedrock of our Plan for Change to build 1.5 million homes and fix the housing crisis we’ve inherited – and get working people on the housing ladder.”

She added: “For decades the status quo has failed them and it’s time to level the playing field. Today we’re taking urgent action to make the system simpler, fairer and more cost effective, so smaller housebuilders can play a crucial role in our journey to get Britain building.”

The proposals include a potential “delayed homes penalty” for developers engaging in land banking, and changes to the planning system that would allow trained planning officers to determine applications for developments of up to nine homes. Currently, these are typically decided by local authority planning committees.

In addition, the government is considering streamlining biodiversity net gain rules, a move that has drawn criticism from environmental groups. However, Rayner maintained that environmental protections would remain in place.

“We’re simplifying the process for houses if there’s under 10 houses built, and between 10 and 49,” she said. “So we’re going to simplify that process. We’re going to put more expert planners on that process as well, but we won’t be compromising on nature.”

She added: “So this is pragmatism, but we’ll be able to protect nature at the same time.”

Labour has set a target to build 1.5 million homes by the end of the current parliament. Meeting that goal will require a significant increase in the pace of delivery, and industry observers have expressed scepticism about the feasibility of hitting the target within the proposed timeframe.