The Federation of Master Builders (FMB) has welcomed the Appeal Court's decision to uphold a Government initiative to waive affordable housing requirements for small developments.

The organisation said the ruling is a "boost for SMEs and house building".

Brian Berry, Chief Executive of the FMB, said: "We welcome the Appeal Court's decision to confirm the Government's right to waive Section 106 affordable housing contributions for sites of ten units or fewer.

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"It's widely recognised that if we are tackle the long-term undersupply of new homes in this country, then we will need to see renewed growth in output from SME house builders.

"Today's verdict will go a long way in backing these firms. It will make the economics of small scale development that much easier and should increase the use of small sites in sustainable locations for the delivery of new homes."

(LM)