We are exhibiting at the Procurement Act Live on 14th October: come and visit us at stand 14!

Navigating the Future of Social Housing: A Commercial Perspective on Public Sector Reform Across the UK

Procurement Pulse 2

Posted by: Joshua Archibald / Oct 2025

October 08, 2025 in Procurement Services

Key takeaways:

  • £39 Billion Investment: The Social and Affordable Homes Programme (SAHP) marks the largest social housing investment in a generation, with 300,000 homes planned 60% for social rent.
  • Procurement Act 2023: New legislation enables more strategic, flexible procurement approaches, opening doors for commercial innovation and long-term partnerships.
  • Supported Housing Demand: Urgent need for scalable solutions to support vulnerable groups, care leavers, disabled individuals, and those facing homelessness can unlock £6 billion in public sector savings.
  • Devolved Policy Landscape: England, Scotland, Wales, and Northern Ireland each pursue distinct housing strategies. Commercial success depends on regional policy fluency and adaptable delivery models.
  • Commercial Leadership Required: Suppliers and service providers must align with local priorities, deliver compliant frameworks, and co-create solutions that drive measurable impact.
  • Opportunity to Lead: With stable funding, regulatory reform, and rising demand, now is the time for procurement professionals to engage, innovate, and shape the future of UK housing.

Navigating the Future of Social Housing: A Commercial Perspective on Public Sector Reform Across the UK

The UK is entering a transformative era in social housing. With the launch of the £39 billion Social and Affordable Homes Programme (SAHP), the government has committed to delivering 300,000 new homes between 2026 and 2036. At least 60% of which will be for social rent. This marks the most significant investment in social housing in a generation and sets the stage for a decade of renewal.

However, the delivery of this vision is shaped by a devolved policy landscape, where England, Scotland, Wales, and Northern Ireland each pursue distinct housing strategies. For commercial organisations operating in this space, understanding these differences is essential to delivering value and impact.

Supported Housing: A National Priority Under Pressure

The Local Government Association (LGA) has called for urgent reform and investment in supported housing, citing:

  • £71 million in NHS costs due to delayed discharges from mental health hospitals in 2023-24.
  • Potential £6 billion savings across the public sector through expanded provision.

Supported housing is vital for:

  • Care leavers.
  • People with disabilities.
  • Individuals experiencing homelessness or mental health challenges.

The LGA urges the government to:

  • Reform housing benefit subsidy rules.
  • Fully fund new burdens for councils.
  • Sustainably fund commissioning and licensing schemes.

Commercial providers have a critical role in delivering flexible, high-quality supported housing models that align with local priorities and regulatory frameworks.

England: Scaling Up with Strategic Reform

The SAHP is designed to address systemic issues in England’s housing market, including:

  • Over 165,000 children are in temporary accommodation.
  • More than 1.3 million people are on social housing registers.
  • Rising rents and poor housing quality are affecting 15% of households.

Key reforms include:

  • A 10-year rent settlement (CPI+1% annually from 2026).
  • A new competitive bidding model for housing providers.
  • Flexibility to support supported housing, rural homes, and regeneration schemes.

Commercial partners are being invited to co-invest and innovate, with the government offering long-term certainty and regulatory reform to attract private capital.

Devolved Nations: Lessons in Innovation and Delivery

The Scottish Government:

  • Abolished Right to Buy to protect social housing stock.
  • Committed to 110,000 affordable homes by 2032, with two-thirds for social rent.
  • Leads in energy efficiency standards and homelessness prevention through Housing First.

Welsh Government:

  • Targeting 20,000 affordable homes by 2026.
  • Prioritises community-led housing and retrofit investment.
  • Progressive legislation supports early intervention in homelessness.

The Northern Ireland Executive:

  • Aims to deliver 2,000 new social homes annually.
  • Endorsed a cross-departmental housing strategy for 100,000 homes by 2039.
  • Maintains a centralised housing executive model.

These nations demonstrate that ambitious targets, stable funding, and tailored governance can drive meaningful outcomes. These models offer valuable insights that could support improvements in delivery and resilience within England’s commercial sector.

Conclusion: Commercial Leadership in a Fragmented Landscape

The UK’s housing crisis demands bold action, and the public sector is responding. But success will depend on cross-sector collaboration, regional adaptability, and commercial innovation.

For suppliers, contractors, and service providers, the opportunity lies in:

  • Aligning with devolved policy frameworks.
  • Delivering scalable, compliant housing solutions.
  • Supporting councils with strategic procurement and delivery.

As a trusted partner to hundreds of public sector organisations, we are committed to helping navigate this new era, whether through frameworks, strategic advice, or end-to-end delivery.

📩 Get in touch with our expert today to find out how we can support your procurement journey:

Simon Davis, Associate Director of Procurement – simon.davis@csltd.org.uk

Are you looking for a bespoke solution that covers all your procurement needs? Learn more

Are you looking for compliant frameworks? Visit here

References:

Back to Mediahub

Latest articles, news and case studies

Navigating the New Procurement Act 2023: What it means for you

Procurement Pulse 1

Continue Read