Social Housing faces many pressures in today’s current political and social climate. The challenges faced reflect that of the public sector, including budget cuts, resource, and staffing issues. With an ever-growing demand for the need of housing, housing organizations are confronted with increased pressure to improve efficiency and shred costs. This blog will discuss how procurement can support housing solutions through various mechanisms.
Predominant barriers faced by Social Housing organisations
Housing solutions are currently faced with a number of barriers and restrictions that are seeing costs rise, and efficiency fall. The demand for housing is increasing at a rapid rate with the sector struggling to meet supply and demand. The key reasons for this can be attributed to:
- Economic factors
- Supply constraints
- Environmental and sustainability concerns
- Opposition to development
The top ways procurement can support housing.
Procurement can play a key role in supporting housing solutions in several ways, some key avenues where procurement can assists include:
- Cutting Cost. Through bulk purchasing agreements using pre-vetted suppliers, procurement can reduce costs on both materials and services.
- Quality Assurance. Fostering to work with reputable suppliers coupled with strict specification standards for both materials and construction practise ensures quality assurance.
- Social Value. Prioritising local labour, promoting apprenticeships and training, engaging and investing into local communities and mandating affordable housing, are all avenues in which procurement can promote social value in communities.
- Green practise and sustainability. Opting for locally and sustainably soured materials, ensuring products and suppliers comply with green standard specifications, favouring renewable energy and minimising waste, are all examples of how procurement can improve housing solutions green practise and sustainability.
Procurement incorporates numerous avenues of support that benefit housing solutions and the housing market; with 85% of social housing employees either agreeing or strongly agreeing procurement can help organisations save cost and resources (YPO Survey).
With an ever-increasing demand for housing in the UK, more and more housing solutions are choosing to foster procurement frameworks to save time and money, increasing efficiency and social value. With the National Audit Office estimates that £4b-£8b could be saved annually across the public sector, through better procurement (YPO Annual Report).
For more information about how procurement housing frameworks can benefit your organisation visit our hosing solutions page Housing Solutions | YPO.
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