Procurement Act 2025: What Housing Providers Must Know

Ecosafe
Oct 7
4 min read

The Procurement Act 2023 takes full effect in 2025 and will overhaul how housing associations, councils, and ALMOs award contracts. The Act doesn’t just tweak procurement processes; it raises the bar on compliance, transparency, and supplier accountability.

One of the most important changes is the prompt-payment rule. Starting October 2025, contractors who fail to meet new invoice performance standards risk exclusion from public contracts. Procurement teams are facing unprecedented pressure to deliver value and compliance.

This blog explains the Procurement Act's requirements, non-compliance risks, and how housing providers can prepare.

Understanding the Procurement Act in 2025

Housing providers rely on frameworks to deliver everything from fire safety and retrofit to planned maintenance and void turnaround. The Act strengthens those frameworks by enforcing stricter standards for suppliers and procurement teams.

Critical reasons why it matters:

Audit risk: Procurement teams must evidence compliance during tendering.
Supplier eligibility: Contractors with poor payment practices risk disqualification.
Reputation: Poor supplier choices damage resident trust and attract regulator scrutiny.

Procurement leaders must balance cost with compliance, social value, and reliability.

The New Prompt-Payment Rules

Under the Act, prompt payment is now mandatory, not optional. Suppliers face strict new time limits and serious consequences for their supply chains:

They must clear 95% of invoices within 60 days.
By October 2025, the requirements will become stricter, requiring an average payment time of 45 days.
Failure to hit these benchmarks is a dealbreaker; it can immediately disqualify a supplier from bidding on public contracts.

Example:

Take a housing association reviewing bids for repairs. One contractor submits the cheapest offer, but their payment history shows they take an average of 72 days to pay their own supply chain. Under the new rules, this framework will exclude the company, regardless of its price.

Checking financial history and payment performance is now a compliance requirement for procurement teams.

Wider Procurement Reforms

Prompt-payment rules are only the start. The Act also overhauls public procurement around four essential themes:

Boosts Transparency: Requires greater reporting from both contracting authorities and suppliers.
Simplifies Processes: Replaces multiple EU-era regulations with a single UK-wide framework.
Strengthens Exclusions: Provides tougher grounds to remove suppliers who underperform or don't comply.
Prioritises Value: Moving the focus from lowest cost to broader social value and sustainability.

For housing providers, procurement is no longer solely about price; it’s about choosing contractors who can deliver compliance and long-term value.

The Risks of Non-Compliance

Failing to align with the Act creates risks for housing providers:

Failed tenders: Appointing non-compliant suppliers could invalidate frameworks.
Payment failures can force providers to replace contractors mid-mobilisation, causing project delays
Reputation: Tenants and regulators expect transparent, ethical procurement.
Financial waste: Poor supplier performance leads to hidden costs and higher risk.

Mobilisation at Speed

When ALMOs restructure, void mobilisation often needs to happen fast. In a typical scenario, completing inspections across 40 voids within 10 days and clearing the majority for re-let would give procurement teams the confidence to move forward. This speed is the level of mobilisation Ecosafe can deliver.

When procurement teams partner with suppliers who can mobilise quickly, they are more likely to hit re-let targets, reduce void rent loss, and gain compliance assurance.

Suppliers with proven mobilisation capacity and transparent performance records represent the lowest risk in the new procurement environment.

How Can Procurement Teams Prepare

To stay ahead of the Procurement Act changes, housing providers should:

Audit supplier payment data now. Confirm they meet the 95%/60-day standard.
Anticipate October 2025. Prepare for the 45-day average payment rule before it arrives.
Check mobilisation history. Require evidence of framework delivery and compliance.
Embed social value. Score suppliers on sustainability, training, tenant outcomes, and cost.
Strengthen audit trails. Keep transparent records for regulators and internal boards.

How Ecosafe Supports Housing Providers

Ecosafe partners with housing providers to ensure procurement compliance and value:

Framework-ready mobilisation packs - including safety inspections and documentation.
On-time payment performance - consistently meeting supplier payment targets.
Proven mobilisation track record - prompt void turnaround and compliance delivery.
Social value delivery - apprenticeships, community projects, and sustainability commitments.

Why procurement teams trust us: We deliver compliance on paper and on the ground.

Role-Specific Summary

As these new rules take effect, different teams must adjust their focus. Here are a few immediate priorities to take note of:

For Procurement Leads:

Make it a requirement: Demand detailed supplier payment data with every bid you receive.
Don't postpone: Start preparing for the 45-day rule before the October 2025 enforcement date.

For Housing Officers:

Focus on tenants: Push firmly for contractors to prioritise reliability and tenant safety.
Risk control: Flag any supplier issues immediately to prevent contract risks from escalating.

For Asset Managers:

Maximise every contract: Use procurement to strategically drive upgrades, including retrofit, safety, and accessibility projects.
Know your partners: Choose firms that demonstrate strong compliance experience across every type of housing stock you manage.

Everything Considered

The Procurement Act 2025 changes the housing procurement culture and provides a regulatory update.

Enforcing prompt payments strengthens supply chains, broadening exclusions raises compliance standards, and emphasising value beyond price rewards providers who put residents first.

Procurement teams who adapt now will reduce risk, secure stronger frameworks, and deliver better outcomes for residents.

At Ecosafe, our mission, Safer Homes, Brighter Futures, extends to procurement. We combine transparent payment practices, speedy mobilisation and safety-focused delivery to protect housing providers and residents.

Visit www.ecosafegroup.co.uk to learn how we can support your procurement and compliance goals across London, the South West, Sussex, and the wider UK.

To discuss further, contact:

Liam Jacobs | Business Development Manager | liam@ecosafegroup.co.uk