FIS has led a coalition of specialist construction trade bodies in writing to Housing Minister Steve Reed OBE and the National Housing Bank, calling for urgent action to address growing liquidity pressures in the housing supply chain.

The letter, supported by organisations representing roofing, electrical works, carpentry, flooring, plumbing, groundworks and other key trades highlights mounting evidence that poor payment practices are creating systemic risk across housing delivery.  FIS research shows that specialist contractors are typically providing between 60–78 days of unsecured credit for completed work, with nearly one fifth of invoices paid more than 60 days late.  Retention release, despite recent positive steps from Government towards wholescale reform, continues to be inconsistent and often delayed.

The coalition warns that this hidden, unstructured credit, estimated to exceed £1 billion across the seven largest UK housebuilders on late and disputed payment alone, is undermining investment much needed investment in skills, productivity and capacity, and ultimately constraining the sector’s ability to deliver at scale.  To address the issue, FIS and the supporting organisations are urging Government to use the emerging National Housing Bank as a lever for change.  Specifically, putting forward proposals to link development finance to mechanisms that improve liquidity through the supply chain, including the use of digital payment systems that ringfence funds and improve payment certainty.

These systems, already in use in parts of the industry, can reduce insolvency risk, improve transparency, and support SME investment without increasing public spending.  The proposal aligns closely with wider Government policy on fair payment, procurement reform, and digitalisation, and offers a practical, finance-led intervention ahead of more comprehensive legislative reform on payment and retention.

FIS CEO Iain McIlwee said:

“Responsible payment isn’t just a commercial issue – it is fundamental to delivery, skills and system resilience. If we want a housing market that can grow sustainably, we need a supply chain that is stable, has the means and confidence to invest in people and improvement.  It is also a human issue, our research into the Housing Sector identified that approaching 60% of specialists in our supply chain were worried about cash at least half the time”

FIS and its partners have requested a meeting with Ministers and officials to explore how these measures could be implemented proportionately to support a more resilient housing delivery system.

You can see a full copy of the letter here..

FIS has responded to the Government’s consultation on proportionality in the higher-risk building regime, backing the intent to reduce unnecessary bureaucracy, but warning that reforms must stay firmly focused on risk.

While supporting proposals to reclassify certain in-flat and small-scale work to Category B, FIS stresses that location is not a proxy for risk. Even minor works can have serious implications where they affect fire compartmentation, fire stopping, or structural elements.

The response highlights concern that proposed thresholds based on time and workforce could create loopholes, encouraging work to be split artificially and leading to inconsistent oversight. Instead, FIS is clear – classification must be driven by the nature and impact of the work itself and a focus on competence in delivery.

FIS also calls out a key gap in the proposals associated with mixed-use buildings where similar works in residential and commercial units risk being treated differently despite comparable safety implications.

Crucially, FIS warns that without clear, consolidated guidance for clients, reforms could increase confusion, misclassification and risk-averse behaviour rather than reduce burden.   The response also raises a red flag on the “Golden Thread”, cautioning that reduced oversight must not lead to gaps in recording and managing safety-critical information.

FIS concludes that the proposals can deliver a better balance between proportionality and safety, but only if backed by clear definitions, practical guidance, and full recognition of both individual competence and organisational capability.

You can read the full response here.

BS 8670-2 Built environment. Core criteria for construction product competence. Code of Practice is a standard that is being developed by BSI which has entered public review until the 13^th July 2026.

This standard follows the precedent set by the white paper published by the Construction Products Association (CPA) which outlined levels of competence for those working with construction products. The standard is not only for suppliers as it distinguishes between a construction product brought to market by a manufacturer or distributor and a “built environment system” supplied and installed by a contractor.

A review copy of the standard can be downloaded for free by anyone with a BSI account using the link below.

British Standards Institution – Project

If members would prefer to discuss their feedback with the technical team, please contact eitherjamesparlour@thefis.org or damianhill@thefis.org

FIS has been featured in a recent Financial Times article examining the growing pressures within the UK housing sector and the often-overlooked impact on the specialist construction supply chain.

While much of the public discussion around housing focuses on delivery targets, investor confidence and market performance, FIS has reinforced the importance of recognising the role of the supply chain, the businesses and people actually delivering homes on the ground.

Drawing on recent FIS research into procurement, payment and contract management practices within the housing sector, the article highlights concerns that specialist contractors are increasingly being used as a financial buffer within the system, carrying disproportionate levels of risk and cashflow pressure.

FIS has consistently warned that these practices are unsustainable and are having wider consequences across the sector, including restricting investment in skills, innovation and business growth, while contributing to rising levels of financial and mental stress within the workforce.

The article reflects the growing recognition that achieving long-term housing ambitions will require more than headline targets alone. It will also depend on creating a healthier, more sustainable commercial environment throughout the supply chain.

FIS would like to thank Megan Snaith for covering this important issue and helping bring greater visibility to the challenges faced by specialist contractors across the finishes and interiors sector.

FIS has responded on behalf of its members to both Government consultations on construction product regulatory reform through the White Paper and the General Safety Requirement (GSR). Both of these consultations and the changes to legislation that they propose will affect many across our membership, with particular focus on suppliers as products that are covered by a designated standard (or an ETA/UKTA) are captured by the proposals in the White Paper, whereas products not covered by a designated standard are captured by the new General Safety Requirement.

FIS engaged with members from across interior sectors at our working group forums to discuss all the proposals and also worked closely with the Construction Products Association (CPA) to determine our response which is closely aligned with the response from the CPA.

Members who would like to see a copy of our response to either the White Paper or the General Safety Requirement should contact our Technical Director jamesparlour@thefis.org