Growth predicted for the social housing sector

Delta eSourcing works closely with housing authorities across the country, supporting many to grow their procurement strategy.

The annual Glenigan Construction Forecast for 2019-2020 predicts improvement for the public housing sector and with optimism in the air now is a prime time for your organisation to consider an effective contract management solution.

We highlight the key takeaways from the Glenigan Forecast below and give more information about our Contract Management module below.

 

Social housing 2019/2020

Overall, Glenigan predicts that the social housing sector is set to grow by 2% in 2019 and 3% in 2020.

Allan Wilén, Economics Director at Glenigan, stated during the latest Glenigan Construction Forecast that:

“Whilst overall starts will decline for a third consecutive year in 2019, logistics premises, build to rent, student accommodation and social housing, secondary education and civil engineering are forecast to be growth areas.”

This is positive news for the sector, as in recent years progress on planned developments has been stalled, as many housing associations have reviewed the implications of the Grenfell fire for refurbishment and new build schemes.

That said, the overall value of detailed planning approvals for affordable housing projects remained stable throughout last year, suggesting that this will support “a modest improvement” in affordable housing projects starts in the UK as projects reviewed in the wake of the Grenfell tragedy have begun work in 2019.

Student accommodation was another area highlighted within the social housing section of the forecast; it accounts for over 25% of work in the sector and has become an important niche market for private sector developers.

Glenigan has reported that “the development pipeline is strong and project starts are forecast to rise by 6% this year.”

 

Housing Sector

With projects already in the pipeline for 2020, we can support housing associations to find suppliers and manage the tenders that they have granted.

Our solution is well known for helping organisations in the housing sector manage spend efficiently. Our contract management software will support buyers through every aspect of contract management post award, enabling you to monitor supplier performance, undertake value tracking, create contract variations and know when you need to plan to retender – and much more!

If you would like to learn more about our work with the housing authorities, visit our “Housing” sector page.