Landlords can expect ongoing market instability and procurement challenges that may impact their ability to deliver on a backlog of investment plans, a new report has warned.
Procure Plus has released a white paper setting out how the social housing sector can rise to the challenges of market volatility in the new financial year.
Calm in the storm: Your guide to navigating market volatility in 2022/23 provides a mixture of analysis and practical advice for social landlords.
The paper forecasts that instability will continue throughout 2022/23, which could lead to rising prices and disruption to supplies.
However, it also makes the case that value can be secured in the market if providers work together in appropriate ways.
Key findings include:
- In 2022/23, we’ll continue to operate in a volatile market, with ongoing price and supply fluctuations.
- Amidst market instability, housing associations are ramping up investment to tackle the backlog of work caused by the pandemic, building safety works and investment in net-zero technologies. Many are also starting to programme the replacement and refurbishment of the initial decent homes works.
- Organisations operating unilaterally when procuring goods and services have been worst affected by market volatility.
- Regular benchmarking shows that landlords secure cash savings of between 10% and 20% with no reduction in quality or service when they come together through Procure Plus frameworks.
Gwen Beeken, Managing Director of Procure Plus said: “We are delighted to publish this white paper to help social housing providers rise to the challenges ahead.
“As we enter a new financial year against the backdrop of continuing economic uncertainty, it is more vital than ever that housing associations secure the best possible outcomes from the market.
“The opportunity is there to secure cost savings, respond to supply challenges and deliver social value if landlords embrace their collective buying power. We are here to help the sector to deliver on this ambition.”