The future of housing: What procurement and contracts teams need to know

Housing delivery in Wales is evolving rapidly, and on three fronts at once:

• A new UK-wide procurement regime with Welsh nuances
• Uniquely Welsh social-value and workforce duties
• Tightening building standards, safety and decarbonisation requirements

Together, these changes are reshaping how housing deals are structured, competed, let and managed.

The Procurement Act 2023: Transparency and preparation

The Procurement Act 2023 (the “Act”) came into force on 24 February 2025. It streamlines procurement into just two procedures, open and competitive flexible, and embeds transparency throughout the process with a new notices regime.

For devolved Welsh authorities, notices that would normally go to the UK’s Central Digital Platform now flow through the Welsh Digital Platform, Sell2Wales, which then forwards information to the UK hub. These processes must be built into pipelines, templates and bid instructions from the outset.

The key to compliance is preparation. Whether you’re a social housing provider, local authority or supplier, understanding the new duties and their practical impact will be essential.

Key changes and duties to understand

Pipeline duty

If you expect to spend over £100m on “relevant contracts” in the coming financial year, you must publish a pipeline notice for each contract valued over £2m. For suppliers, this offers early visibility, an opportunity to plan and allocate resources in advance.

Dynamic markets

Replacing DPS, Dynamic Markets create always-open supplier lists that can be divided by category, keeping competition live across multi-year pipelines. They’re more flexible than frameworks but require careful upfront design of entry criteria and modulation rules, and still need a competitive process.

Prompt payment down the chain

The Act implies 30-day payment terms into public sub-contracts, with spot checks encouraged and reporting requirements in place. This should improve SME cashflow across housing supply chains. Authorities will build these provisions and KPIs into contracts to continually monitor performance.

Package deals

Package deals face growing scrutiny under the Act. Enhanced transparency obligations mean exclusivity arrangements will be under closer examination than ever before.

Debarment and exclusion

If you buy or sell via the public sector, note the new central debarment regime and updated exclusion grounds. Due diligence and bid/no-bid decisions must take the debarment list into account.

Safer homes and sharper standards

Specifications and KPIs should now reflect the latest safety and quality standards. For existing homes, the Welsh Housing Quality Standard (WHQS) frames upgrades across decarbonisation, condition and tenant wellbeing, alongside fitness-for-human-habitation duties under the Renting Homes (Wales) Act and Welsh-specific guidance on damp and mould (distinct from Awaab’s Law in England).

Building for net zero and nature positive outcomes

Housing providers should ensure their contracts include appropriate net-zero clauses. The Chancery Lane Project provides free, sector-tested clauses (including built-environment tools) to help embed climate obligations throughout the supply chain.

There’s also an ongoing consultation on energy and ventilation standards. All parties should anticipate a zero-carbon-ready direction of travel, meaning contract scopes and performance specs must reflect emerging expectations. Materials strategies will matter too, for example, the push for more Welsh timber in construction especially encouraged in social housing delivery routes and frameworks.

Forms of contract

Authorities will need to check that policies and standard form contracts have been updated to reflect new and implied procurement terms, particularly around termination, performance, modifications and prompt payment requirements.

The Social Partnership and Public Procurement (Wales) Act 2023

Alongside the Act, the Social Partnership and Public Procurement (Wales) Act 2023 (SPPP) introduces a socially responsible procurement duty on specified public bodies.

In practice, this means setting and publishing objectives, preparing a procurement strategy, using social public works clauses in major construction contracts, managing and reporting delivery, and explaining any exceptions. Suppliers should expect these obligations to be reflected in contract conditions and performance KPIs once the Act takes full effect.

The Welsh Government’s Procurement Policy Statement reinforces this approach, linking procurement to the Well-being of Future Generations (Wales) Act. Updated Welsh Procurement Policy Notes (PPNs) also strengthen community benefits and social value reporting for the new regime. Authorities should already be aligning their evaluation, contract management and reporting dashboards to this framework, and suppliers will need to demonstrate compliance.

What housing providers and suppliers should do now

Under this new framework, all parties can expect more publication, more scrutiny, and potentially more disputes before the system matures into one that delivers quicker, more flexible competitions.

Our top tips for authorities:

• Map your 12–24-month pipeline now and identify which activities will trigger transparency notices and when.
• Update governance documents to distinguish between arrangements under the old and new regimes.
• Create clear process maps for extensions and modifications and set measurable objectives.

This preparation will give your teams, and partners on the ground, the clarity they need to plan and deliver compliant, future-ready procurement programmes.

Looking ahead

The changes reshaping housing procurement in Wales bring both challenge and opportunity. Those who prepare early, invest in robust governance, and collaborate across the supply chain will be best placed to deliver homes that meet higher standards for safety, sustainability and social value. By approaching the new regime as a chance to build better, not simply to comply, authorities and suppliers can drive meaningful improvement across the sector.

We’re already supporting clients to adapt procurement strategies, contracts and delivery models to meet these demands, helping them stay compliant, confident and ahead of the curve.