CHIC CHAT




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Click here to download the SOCIAL_HOUSING_CROSSWORD_PUZZLE.pdf

The future of social housing was prudently addressed, following a riveting conversation held by Theresa Mays former chief of staff Nick Timothy at one of our own board awaydays, back in January.

Many believe that social housing is nearing the bottom of the agenda when it comes to the implications of Brexit and is being heavily overlooked.

Arguable, the main issue that the social housing sector is going to face is the logistical changes to supply chains. With materials like timber being heavily imported from the EU, many merchants have already begun contingency planning to maintain their sustainability, and have adopted the approach of stockpiling materials; however, it’s a very temporary solution

The overcomplicating of importing materials is set to have some implications on the affordability of social homes, whether this is going to be for the good or bad of renters in the UK.

But the question is, does anyone know what they are doing? Planning for the unknown is an impossible feat in all walks of life, let alone when looking to mitigate the effects of Brexit on an entire industry.

The potential knock-on effects are endless with the immediate ones possibly the most damaging. Will we begin seeing more or less jobs in the construction industry? Half of construction workers in London come from the EU and many have already gone back to avoid being ‘stuck’.

The effects that deal or no deal Brexit could be endless from temporary purchasing alternative materials to a complete logistical change, steering away from current just in time solutions.

Going from a blanket agreement to, well, who knows what, is going to be a huge change regardless of the specifics and the social housing market is inevitably going to learn to adapt no matter what comes its way; Deal or No Deal is just the beginning of something bigger.

With every future deal coming from UK Parliament, surely our government will do what is best for UK citizens? It is no secret that the UK has been in a housing crisis for some time now with the publication of reports like the Shelter’s “vision for social housing”.

Although the UK is going Brexit crazy, there’s no need to panic. CHIC has been actively collaborating with its members / suppliers to gather intel on what is the best course of action to mitigate the amount of disruption to the supply chain. 95% of Manufacturers and Distributors have already plans in place to mitigate for a No deal vote with the large majority being determined as low risk. (Testimonial from a supplier)

CHIC has engaged with it’s supply chain to ensure that members have contingencies in place for every aspect of property maintenance requirements.

CHIC’s Merchant Services Manager (maybe change it to Supply chain manager) is of the opinion that: “The worst thing that we in the social housing industry can do right now, is to put our heads in the sand and hope that this storm will pass us by. The first thing that will be affected will be supply chains, as we see in other sectors such as the automotive industry. Arguably if housing associations engage with purchasing groups, in respect of their suppliers, trends will be noticeable which means that steps can be taken to mitigate negative effects.”

As rightly pointed out purchasing groups such as CHIC, are better positioned to notice trends in the market that individual housing associations cannot see, and this is purely down to the number of suppliers each engages. Having a pool of suppliers providing the same type of service, normally via a framework, will allow members that purchase through that group a better understanding of where the market is going.

In these trialling times, co-operation is key, and instead of we can do it better, we need to do it better together.

The question is then, what has your association done to ensure that services will not drop.

Quote from Bournville to come: - need to chase giles again today.

If you are worried about the Brexit impact on your organisation, please give us a call.



Updates from CHIC

 

Welcome to the new starterWe are delighted to welcome Asya Parveen to the CHIC team as a Procurement Manager. Asya will play a key role in ensuring the compliant procurement of frameworks, DPS solutions and call of contracts, supporting our members with efficient and structured procurement processes. Her expertise will help deliver robust, value driven solutions that meet the evolving needs of our members.

Procurement’s Role in DecarbonisationWe have written an article for the Unlock Net Zero hub, exploring the crucial role of public sector procurement in driving decarbonisation. By setting clear sustainability requirements and partnering with suppliers committed to net zero goals, CHIC is supporting housing providers to integrate low carbon solutions into their procurement strategies, delivering both long term value and positive environmental impact. Read more: Procurement’s Role in Decarbonisation 

Recent Contract AwardsHere is a look at some of the latest contracts awarded through CHIC, highlighting the wide range of services our members and partners provide. This will be a regular feature in CHIC CHAT going forward.

This Month’s Housing UpdatesAs a new CHIC CHAT feature, we summarise the latest news from the housing and construction sectors. If you find this useful, please let us know.

Over 200 Landlords Join Section 106 Clearing Service
In its first 50 days, Homes England’s new Section 106 clearing service has signed up 140 providers and over 70 local authorities as buyers. The platform was launched to address declining social landlord purchases, which were delaying private housing projects. Many housing associations are shifting focus to land led development or other priorities like fire safety. (Source: Homes England)

Government Blocks Bill for Mandatory Solar Panels on New Homes
The UK government has rejected the Sunshine Bill, which proposed requiring solar panels on new homes from 2026. While supportive of greener homes, officials cited regulatory complexity and concerns about housing supply. Instead, future building regulations will encourage, but not mandate, solar panels. (Source: UK Government)

Homes England Expands SME Housing Fund to £47.5m
Homes England has nearly doubled its lending fund with Invest & Fund, increasing support for small housebuilders. The expanded £47.5 million fund aims to finance 600 more homes, offering development loans of up to £4 million. The initiative extends through March 2030 to assist micro-SMEs. (Source: Homes England, Invest & Fund)

Two-Thirds of Councils Face Housing Budget Crisis by 2030
A survey of 76 local authorities found that 67% risk failing to balance their Housing Revenue Account within six years. Many councils have already paused housebuilding, reduced maintenance, or dipped into emergency reserves. Some may be forced to sell homes or borrow just to cover regular costs. (Source: Southwark Council)

MPs Launch Inquiry on Land Value Capture
A parliamentary inquiry will examine how rising land values can fund public infrastructure and affordable housing. The review will assess policies like Section 106 agreements and explore reforms to developer contributions and compulsory purchase rules. (Source: Housing, Communities and Local Government Committee)

Only 10% of Building Safety Fund Reaches Social Housing
NHF CEO Kate Henderson told MPs that most safety funding benefits private landlords. Social housing providers can only access funds if costs would otherwise fall on leaseholders. She criticised using tenants' rent for remediation, calling it “unfair.” (Source: National Housing Federation, HCLG Committee)

40% of Building Applications Fail to Meet Safety Standards
A senior Building Safety Regulator official revealed that nearly half of applications cannot prove they meet long-standing safety rules. Delays in the new Gateway 2 approval process have slowed construction, but regulators emphasize strict compliance. (Source: Building Safety Regulator, London Assembly Fire Committee)

Government Aims to Introduce Leasehold Reform This Year
Housing Secretary Angela Rayner confirmed plans for new leasehold reforms, including making commonhold the default for new flats. The move follows a recent ban on most new leasehold house sales. (Source: HCLG Committee, UK Government)

Report: Cost and Speed Still Prioritised Over Safety in Construction
Despite new building safety regulations, contractors say developers prioritise low costs and fast completion. The Building Engineering Services Association warns that safety compliance remains overlooked, calling for stricter enforcement and clearer guidance. (Source: BESA Report)

 




Upcoming Events


 
 
 

 
 
 
 



Procurement Updates

 

Procurement Act 2023: Now Live – What You Need to KnowAfter months of preparation and anticipation, the Procurement Act 2023 is now officially live. This marks a significant shift in public procurement, introducing a more transparent, efficient and competitive process. At CHIC, we have been closely following the changes and have published a series of in-depth articles guiding our members through the key aspects of the Act. You can find all these resources on our website. But for now, here’s a summary of what you need to know.

Key Changes Under the Procurement Act 2023The Act simplifies and streamlines procurement rules, replacing existing regulations with a single framework that promotes fair competition and greater transparency. Some of the key changes include:
Transparency: Mandates the publication of various Notices on the Central Digital Platform (CDP) at key stages on the procurement journey from pre-market engagement through to contract management, enhancing visibility, supplier engagement and accountability in public procurement.
Compliance and Knowledge: Introduces stricter compliance measures, including mandatory supplier registration on the Central Digital Platform (CDP), to ensure adherence to procurement standards and facilitate knowledge sharing among contracting authorities.
Performance: Requires the establishment of at least three KPIs for public contracts exceeding £5 million, with annual performance evaluations to ensure suppliers meet contractual obligations and publication of these on the Central Digital Platform (CDP).
Frameworks: Allows for the creation of both open and closed frameworks, providing contracting authorities with greater flexibility in supplier selection and enabling the inclusion of new suppliers at agreed breaks in the framework's term, up to a maximum of 8 years.
For a detailed breakdown of each of these areas, refer to our previous articles available on the CHIC website.

The Central Digital Platform: What You Need to KnowA crucial aspect of the Procurement Act 2023 is the introduction of the Central Digital Platform, a new online system designed to improve accessibility, transparency and efficiency in public procurement. Here’s why CHIC members should take note:
What is it? The Central Digital Platform will serve as the go to hub for procurement notices, supplier registrations and contract management. It will centralise key procurement data, making it easier for both buyers and suppliers to access essential information.
Why Should You Be Aware? As registered providers, our members will need to use this platform to stay informed about procurement opportunities, ensure compliance with new transparency rules and efficiently manage supplier engagements.
CHIC’s Role CHIC is now a registered buyer on the Central Digital Platform, meaning our frameworks and opportunities will be listed and managed through this system. This ensures that our members benefit from a streamlined and compliant procurement process.

Stay Informed and PreparedThe Procurement Act 2023 presents both challenges and opportunities. As always, CHIC is committed to supporting our members through these changes. We encourage you to review our past articles for more detailed guidance and stay connected with us for ongoing updates.

For further information, visit our website or get in touch with Sam Domican at tenders@chicltd.co.uk. We are here to help you navigate the new procurement landscape with confidence.


 



From policy to practice

 
From policy to practice: The UK's Clean Heat Market Mechanism revisions explainedMartyn Bridges, Director of Governmental and External Affairs at Worcester Bosch, discusses the Government's recent revisions to the Clean Heat Market Mechanism.
 
The ‘hot’ topic in the heating industry at the moment is the government's revisions to The Clean Heat Market Mechanism (CHMM) which were announced in November.
 
The Clean Heat Market Mechanism (CHMM) is an initiative first proposed under the UK’s previous Conservative government. It essentially fines gas and oil boiler manufacturers if heat pumps don’t account for at least 6% of their installations.
 
Initially, due to launch in April last year, it has been pushed back to April 2025 with the current Energy Minister making revisions as part of its Warm Homes Plan to decarbonise UK heating systems.
 
 
So what’s changed?Following an industry consultation, which Worcester Bosch has been a part of, we got confirmation that the clean heat market mechanism is to go ahead. Although the new government has decided to press go, it comes with some radical changes.
 
Firstly, the levy will be reduced from £3000 to £500 for every extra boiler over the limit for the CHMM’s first year. This will rise back to £3,000 the following year, with the expected proportion of heat pump sales to rise from 6% to 10%.
 
Most fundamentally, both counts for boilers and heat pumps will start on the 1st April 2025. Originally, the proposal was split, with heating producers counting the number of boilers sold from 1st January and the number of heat pumps from 1st April. You can see why there was confusion. Bringing the dates together is clearer, and will prevent mass hysteria and stocking up on boilers before any price increases are implemented.
 
Understandably, there was a delay. When a new government comes into power, it tends to appraise everything. The policy was probably semi-drafted, if not fully drafted and therefore required a thorough review to determine if the new ministers agreed with the policy.
 
 
The heat pump and boiler equationThe mechanism itself is much the same as before, but with the greatly reduced penalty of £500 for every unmet heat pump sale rather than the original £5000, which was then reduced to £3000.
 
Although it's an improvement. It isn't cheap. £500 is still a huge amount of money for a manufacturer who's going to sell a lot of boilers because they have to sell or match 6% of their boiler sales with heat pumps. In simple terms, for every 100,000 boilers sold, the producer has to sell 6000 heat pumps - that’s no easy feat, given there are many barriers of heat pump adoption among homeowners.
 
 
The necessity of driving greater demandMechanisms are an unusual device or policy which don’t really do anything to increase the demand, which is ultimately how markets work.
 
Whilst the market for heat pumps is showing an improvement this year, it is still not large enough for every manufacturer who is set a quota to actually sell enough.The market simply isn't large enough as it stands which means it’s almost certain that manufacturers will be making something that an end user unfortunately does not want.
 
This is operating in the same way as car manufacturers and their EV policy, where a percentage of cars sold must be either plug-in hybrid cars or fully electric cars. Recently car manufacturers have approached the government to say that the targets are impossible to meet and warned that high fines and increasing expenses will endanger jobs in the United Kingdom.
 
We don’t want this to be the same in the heating industry. We need further policy intervention to make the demand for heat pumps higher, and that really comes down to reducing the price of electricity in the UK, which is the most expensive in Europe. Reducing the cost of electricity would decrease the running costs of heat pumps which would make them more popular for end users. I know people would certainly see a benefit in spending the upfront set-up cost to have their ongoing bills reduced compared to if they were using gas or oil.
 
Overall we welcome the Minister's intervention and common sense approach in making these fines slightly more realistic, however further policy changes are still required to increase heat pump adoption in the UK. We all agree on the goal, we just need to ensure there are proper incentives to get there.
 



Social Value

Help Us Celebrate Your Achievements at the CHIP Fundraising Awards & DinnerCHIC is delighted to be hosting the CHIP Fundraising Dinner & Awards on 21st May after the CHIC Conference, celebrating the outstanding work of our members and supply chain partners in supporting communities and delivering social value. To make this event truly special, we are creating an opening video showcasing the incredible impact you and CHIP have made over the past year.
 
We are looking for video testimonials and photos that highlight your achievements. Whether it’s a successful project, a community initiative, career progression of an apprentice or a fundraising effort, this is a fantastic opportunity to share your stories and shine a light on the difference you are making.
 
If you would like to contribute, please send your videos and images to marketing@chicltd.co.uk by Friday 28th March. Thank you for your support.
 
For more information about CHIP, visit chipcharity.org.uk.
 
To register for the CHIP Fundraising Dinner & Awards event, please CLICK HERE
 
 
 
National Apprenticeships Week - Meet our apprentice, HarisHaris has been with CHIC for nearly 2 years and has worked with the member services team, procurement team, data team and commercial team.
 

In light of National Apprenticeship Week, we spoke to him to ask how his time at CHIC has been and what he plans to do after his apprenticeship.

What made you choose an apprenticeship with CHIC?
I chose an apprenticeship with CHIC to gain hands-on experience and learn about the various business functions within the sector.
This role has allowed me to contribute to meaningful projects that improve communities while developing my own skills and career aspirations.

What do you enjoy the most about your role?
I enjoy the versatility and range of my role as I can see the impact of my work across different projects and departments, including contract management, procurement and the technical side of it all too. CHIC’s fast-paced environment keeps me engaged and constantly learning.

What challenges have you faced whilst being at CHIC?One of the main challenges I faced was being new to this sector and not knowing much initially. However, working closely with the CHIC team and learning about the wider sector has significantly improved my knowledge, confidence and skills.

What will you do after your apprenticeship?After my two-year apprenticeship is completed, I would like to stay at CHIC and continue my career in this area. I am confident in the opportunities for growth and development within CHIC and look forward to progressing my career further.

For more information, you can visit our aligned charity CHIP’s web page, where you can find out how CHIP supports CHIC to reach its social value objectives.

 

 



This Month's Blog

 

Service with Engagement
Fifteen years ago CHIC was launched to support and assist landlords in the housing sector, to efficiently procure the asset management goods and services they need. Seven founder members created CHIC, but always with the intention others could join and through collaboration CHIC might grow, to benefit its members tenants.

Fast forward to today: CHIC has grown to over 280 members and 1,300+ suppliers, offering eight service pillars and managing 40+ frameworks and Dynamic Purchasing Systems (DPS). This growth has been driven by our continued commitment to deliver efficiencies, cost savings and a strong supply chain dedicated to working in the housing sector. As a consortium, we are always willing to go the extra mile to make a difference in our sector.


My Role
I’ve been asked to shed light on my role as Head of Member Services for the South, what we do, how we engage and what it means for everyone involved.

I like to think of CHIC as a layered support network. From procurement and technical expertise to commercial, marketing and data insights, our team works as an efficient service provider. At the frontline, I collaborate with a dedicated member services team to support and guide our members.

You’ll often find us exhibiting or attending events across the UK, particularly in the housing sector, engaging in discussions on key industry challenges and working closely with our suppliers.


Key Industry Developments
Recent changes have brought a series of significant regulatory and funding updates, including:
• The Building Safety Act
• The Procurement Act (originally set for October 2024, now delayed to February 2025)
• Wave 3 of the Social Housing Decarbonisation Fund
These changes are at the forefront for many members as they navigate funding uncertainties and the evolving legislative landscape.


Supporting Members Across the South
As Head of Member Services for the South, my role involves engaging with members across the South of England. While I frequently travel to see members, I also regularly utilise ‘Teams’ to listen, advise and support members in accessing our frameworks, whether through Direct Award or Mini-Competition.

One of our most impactful services helping members is Decarbonisation. Through the Healthy Homes Framework, we have ongoing conversations about retrofit projects, procurement strategies and funding requirements. These discussions, and subsequent framework use, help members align their bids with regulatory expectations while ensuring timely and effective project delivery.

For me, the real impact happens at the operational level, where plans turn into actions. CHIC plays a crucial role in facilitating service delivery for our members customers, ensuring that contracts are executed efficiently and that members receive the best possible outcomes.

For example, at a recent project site with one of our suppliers, we focused on tenant engagement, helping residents understand the planned External Wall Insulation (EWI) works. Given the intrusive and noisy nature of the project, clear communication was essential. Through our Managed Service, CHIC supported the member throughout the contract, ensuring smooth execution and positive outcomes for all stakeholders.