Procurement practices are a major driver of why councils and housing associations pay more than private developers to build homes, a new report from The Housing Forum argues.
Procurement – the price we pay, and the path to improvement identifies fragmented decision-making, lengthy timelines and risk-averse approaches as key cost drivers but says these are controllable and not inevitable.
Chief Executive Alex Notay said standardising processes, improving risk management and speeding up decision-making could cut costs without compromising quality, safety or design.
Recommendations include standardising Employers' Requirements, shifting from risk transfer to early contractor involvement, and accelerating approvals through parallel processes.
The report builds on the Forum's 2024 finding that average UK home construction costs £242,000 excluding land, with members reporting continued cost inflation since.
The Housing Forum says procurement reform offers councils one of the quickest, most practical routes to improving delivery within their control.
