Despite an initial preference for the rival Fairey Ultra-light Helicopter, which had already been ordered, there was a reversal of fortune with interest from the Bundeswehr in the potential procurement of a large number of Skeeters.

In response, the company decided to develop an improved Mark 2 Skeeter which was to be equipped with the well-established de Havilland Gipsy Major 10, which provided 145 hp (108 kW).

[4] Subsequent testing showed that these aircraft continued to be underpowered and that the previously encountered ground resonance problems had yet to be properly resolved; these failings were cited as the reason for official support for the rotorcraft being suspended.

[4] In response to the suspension, Saunders-Roe chose to undertake a lengthy series of company-funded tests, which involved the use of a specially-built rig as well as more theoretical work being performed, for the purpose of identifying both the causes of and solutions to the resonance issue.

[8] In 1953, there was a requirement issued by the British Ministry of Supply which sought for a low-cost two-seat helicopter, which would be suitable for reconnaissance, casualty evacuation and training duties.

At this time, newly developed gas turbines were beginning to appeal both to helicopter designers and to prospective operators, the British Army made the use of such an engine one of its requirements.

[9] Meanwhile, a solution for the Skeeter's troublesome resonance issue had been developed, which involved the adoption of a redesigned undercarriage and the fitting of revised blade friction dampers on the rotor head.

These improvements allowed Saunders-Roe to finally demonstrate that the ground resonance problems had been fixed when the Skeeter Mark 5 underwent testing by the A&AEE in March 1954.

[4] The resolution of the issue served to reignite official interest in the rotorcraft, quickly leading to a smaller order being placed for four Skeeter Mark 6s, each equipped with 200 hp (149 kW) Gipsy Major 200 engines (designated as AOP.10 and T.11 by the British armed forces), for evaluation purposes.

Thus, the decision was taken in Whitehall to concentrate its efforts on the Skeeter, which effectively meant the abandonment of the Ministry requirement that the rival Fairey Ultra-light had been being developed towards fulfilling.

The handling characteristics were broadly similar to comparably-sized rotorcraft of the era, while possessing the necessary simplicity, robustness, and reliability that commonly typified trainer aircraft.

[15] The main rotor-blades made use of a composite construction, using a steel-tube spar that was bonded to wooden veneers, formers, and ribs, as well as brass balance-weights; these reportedly delivered a cost-effective and relatively simplistic rotor blade that also possessed favourable fatigue properties.

Saunders-Roe also developed a replacement metal light alloy rotor blade that possessed superior aerodynamic properties and provided increased performance.

As an alternative to the turbocharger, a rocket powered rotor boost system was developed by D. Napier & Son, fuelled by High Test Peroxide (HTP) decomposed at blade tip nozzles by contact with a catalyst.