A survey of procurement staff working in local authorities and housing associations has found that 47% feel inadequately resourced and 42% feel insufficiently trained on new public procurement regulations.
The findings, from a member insight survey by procurement services provider Procurement for Housing (PfH), indicate that social housing buying teams are under heavy pressure to deliver savings and cope with the new requirements of the Procurement Act, despite being short-staffed and ill-equipped.
In last year’s survey, 48% of respondents predicted their team would grow because of new public sector procurement rules. This hasn’t come to light, with only 21% of procurement teams increasing in size over the past 12 months.
Just over half of procurement professionals reported that policies and procedures in their housing association or local authority had been updated in line with new buying rules. Of those respondents who feel unprepared, the majority work for smaller housing providers with under 10,000 homes.
Interestingly, only 52% of respondents said they will be procuring goods and services under the new regime within six months of it going live, signalling a nervousness, particularly amongst smaller providers with limited resources or organisations that haven’t done enough prep work.
However, 82% of respondents believe that procurement’s importance in the sector has increased (either slightly or significantly) over the past 12 months. Although this shows the value of procurement is growing, there isn’t the same progression around what it is valued for.
Last year’s survey confirmed that most social housing leaders see procurement as a transactional, compliance-driven function. 12 months on, it’s the same picture. The most common perception of procurement by senior leaders is still ‘compliant’, indicating the profession’s continued reputation for regulation and administration, rather than long-term business value.
Guy Stapleford, Head of Consultancy Services at PfH said: “Social housing procurement professionals are feeling the strain right now. They’re having to find extra savings to fund development, remediation and ambitions for net zero, and contend with market forces driving up prices. New procurement rules are adding to their in-tray, with little additional resource or training. Despite this, we see that procurement’s standing in the sector has increased and that has to be because of the strategic impact it’s making in housing organisations, against all the odds.”
