Staying Ahead of New Rules That Could Impact Your Payments, Contracts, and Credit Risk

In an industry already facing rising material costs, tighter margins, and late payments, staying informed about legislative changes isn’t just good practice — it’s essential to protecting your cash flow.

At Top Service Ltd, we specialise in credit management solutions tailored to the UK construction sector. Here’s a clear guide to what’s changing in 2025 — and how to protect your business from unnecessary risk.

1. Construction Act: Know Your Rights on Payment

The Housing Grants, Construction and Regeneration Act 1996 (often called the Construction Act) gives subcontractors and suppliers the right to fair payment terms and a dispute resolution process via adjudication.

Key reminders:

• Payment terms must be clearly defined in the contract.
  
• You’re entitled to interim payments on longer-term contracts.
  
• If payment is late, you’re legally allowed to suspend work after serving notice.
  

 2. Fair Payment Code: Moving Beyond the Prompt Payment Code

In 2024, the government introduced the Fair Payment Code — evolving from the Prompt Payment Code — to hold larger firms accountable for how they treat suppliers and subcontractors.

Key changes:

• Large businesses must publicly report their actual payment performance.
  
• Public sector buyers are being encouraged to exclude poor payers from major frameworks.
  
• There is a growing move toward 30-day payment terms as standard, especially for SMEs.
  

What this means for you:
If you’re being paid late, you may be able to use this new code to put pressure on clients, especially where public contracts are involved.

Top Service can support: Our members get access to real-time credit information, so you can track which contractors are falling behind before it affects your business.

3. Companies House Reform: Identity Checks and Transparency

As part of the Economic Crime and Corporate Transparency Act 2023, changes at Companies House are rolling out through 2025 to improve corporate accountability.

What’s changing:

• Identity verification for all directors and PSCs (people with significant control) — stopping fake or hidden entities.
  
• Companies House gains more powers to challenge and remove false or misleading information.
  
• More cross-checking between agencies (e.g. HMRC) for red-flagged behaviours.
  

Why this matters:
You’ll be better able to trust the details you’re seeing in public filings — and if something doesn’t look right, it’s a strong sign to carry out more in-depth credit checks.

Top Service tools: We cross-reference real-time trade payment data with Companies House filings — helping you spot discrepancies early.

4. Changes to Insolvency and CVAs (Coming Later in 2025)

While nothing is confirmed yet, the UK Government is consulting on tighter regulations around Company Voluntary Arrangements (CVAs) and pre-pack administrations. These measures aim to:

• Improve transparency for unsecured creditors
  
• Prevent “phoenixing” — where directors walk away from debts and restart under a new company
  
• Strengthen creditor rights in restructuring
  

Construction relevance:
Historically, the industry has seen contractors leave behind debts through CVAs, often hitting suppliers hardest. These reforms aim to reduce that risk — but they’ll need enforcement.

  In 2024, the average dividend from construction insolvencies was under 6p per £1 owed.

Our role: We monitor and alert you to early warning signs of financial troubles, insolvency filings, payment suspensions, and creditor meetings involving your customers — in real time.

5. Contract Clauses and Legal Enforcement: It Starts With Strong Terms

Poorly written contracts are one of the most common reasons payment disputes end badly. The legal landscape is evolving, but your own paperwork is your first line of defence.

Does your contract:

• Define clear payment milestones and penalties for delay.
  
• Include interest charges and legal recourse if payments are missed?
  
• Require personal guarantees from directors where appropriate?
  

Summary: Stay Compliant, Stay Paid

Legal changes can feel abstract, but for UK construction firms, the implications are very real:

• Get paid faster
  
• Avoid bad debt
  
• Reduce legal and financial risk
  
• Spot trouble before it starts
  

Need help reviewing your contracts or chasing overdue payments?

We’re the UK’s only credit management specialists focused solely on the construction sector.

📞 Arrange a demo call
📩 Ask a credit expert

👉 www.top-service.co.uk
☎ 01527 503990
📨 info@top-service.co.uk

In construction, a handshake can still seal the deal — but when things go wrong, that informal approach can cost you time, money, and reputation.

At Top Service Ltd, we’ve worked with thousands of credit professionals, merchants, and suppliers who’ve been caught in the crossfire of disputes over unpaid invoices, delivery terms, or liability. More often than not, the root issue is the same:

The client agreement wasn’t clear, or wasn’t in writing at all.

This month, we’re helping construction businesses understand how to build watertight agreements that prevent disputes before they happen — and protect your business if they do.

Why Strong Client Agreements Matter More Than Ever

With tight margins, complex projects, and increasingly cautious clients, construction suppliers are more exposed than ever to payment delays and disputes.

Some common risk scenarios:

• No written agreement on credit limits or payment terms

• Verbal changes to scope or delivery expectations

• Clients disputing quality or performance after materials are delivered

• Customers use unclear clauses to delay or reduce payments

Legal disputes are expensive, stressful, and time-consuming — even when you win.

 The 6 Essentials of a Strong Construction Client Agreement

To reduce the risk of non-payment or disputes, every agreement should clearly set out:

Top Service Tip: Agreements don’t need to be 10 pages long — but they must be clear, signed, and consistent with your internal processes.

Common Mistakes That Lead to Disputes

“We’ve always done business on a handshake”

“It’s just a small job — didn’t seem worth a contract”

“They paid late, but they always pay eventually”

These scenarios are all too familiar — and often lead to:

• Arguments over when materials were accepted

• Claims of non-delivery or incorrect products

• Late payments with no agreed terms to fall back on

• Legal costs that outweigh the debt being chased

We regularly support customers trying to recover debts where the only proof is an email trail, a verbal promise, or a vague purchase order.

How Top Service Ltd Supports You

We don’t just help you chase debt — we help you avoid needing to.

As a Top Service customer, you can:

Access credit application templates and advice

Get guidance on key clauses to include

Credit check new customers before you agree terms

Monitor accounts for changes in credit risk or trading behaviour

Recover unpaid debts professionally and fairly — even without a formal agreement

Our team understands what works in construction — and where credit risk turns into cashflow loss.

In the construction sector, offering credit is standard, but getting paid isn’t always guaranteed.

With high insolvency rates, late payment culture, and complex company structures, even the best customer relationships can end in unpaid debt. That’s why more suppliers, merchants and plant hire firms are asking one crucial question:

Should we ask for a personal guarantee?

At Top Service Ltd, we support thousands of credit professionals across the UK construction supply chain. Here’s what we advise when it comes to personal guarantees — and how they can protect your business when things go wrong.

What Is a Personal Guarantee?

A Personal Guarantee (PG) is a legally binding agreement where a director or individual agrees to personally repay a company’s debt if the business itself cannot.

In construction, this is especially useful when supplying to limited companies with few assets or new clients without an established credit history.

In practice, if a customer goes into liquidation, and you don’t have a PG, you could be left with no recovery options.

 Why Construction Businesses Are High-Risk Without a PG

The construction sector has the highest insolvency rate in the UK economy, and not just among small businesses.

Here’s why PGs matter more than ever:

• Many construction firms operate with thin margins and high overheads

• Project delays or non-payment from main contractors can cause rapid collapse

• Directors often close one company and reopen it under a new name

• Recovery through insolvency processes is often pennies in the pound, if anything

At Top Service, we’ve seen PGs make the difference between writing off a £50,000 debt… and full recovery.

 When Should You Ask for a Personal Guarantee?

Use this quick guide:

Tip: Don’t wait until there’s a problem. PGs should be signed as part of your credit application or T&Cs — not when debt is already owed.

 What Should a Good Personal Guarantee Include?

Make sure your PG is:

• Properly worded and legally enforceable

• Signed in the individual’s capacity

• Linked clearly to the credit facility or account

• Includes no time or limit restrictions, unless you intend them

• Witnessed (adds strength if ever challenged)

A Personal Guarantee Is Only as Strong as the Guarantor

It’s vital to understand that:

• A personal guarantee is only as strong as the individual behind it.

• If the guarantor has:

• No personal assets

• Poor credit history

• High levels of personal debt

• No meaningful income

…then the guarantee may offer little to no real security.

🧠Top Service Tip: Always credit check the individual as well as the company. If they’re unlikely to repay personally, consider lowering the credit limit, requesting pro forma payments, or strengthening your terms in another way.

 But What If They Say No?

That’s a real scenario. Some directors will be reluctant to put their name on the line.

When that happens:

• Consider reducing or capping the credit limit

• Request pro forma payment for initial orders

• Offer staged credit (i.e. increase limits only after timely payments)

• Make sure your terms of sale are watertight

Use a Top Service credit report to monitor behaviour closely

You don’t have to say no to the business, but you should adjust your risk strategy accordingly.

 How Top Service Ltd Can Help

We’re more than just a credit reference agency. We actively support our customers to:

✅ Identify when a personal guarantee is worth asking for

✅ Provide templates and guidance

✅ Credit check directors as well as businesses

✅ Monitor for changes in trading, payments or risk

✅ Chase unpaid debts efficiently — including PG recovery if needed

Our expert team understands the unique pressures in construction and how to manage credit risk without damaging relationships.

“Minimise debt, maximise cash” is more than a slogan — it’s a service promise.

🧾 Not sure when or how to ask for a personal guarantee?

We’ll show you the best practices and give you tools to make it easy.

👉 Ask an Expert | Register for a Free Trial | Arrange a Demo Call

Before You Supply or Sign: Key Agreement Clauses That Could Hurt Your Cashflow

In construction, it’s not always the job itself that creates risk — it’s the agreement behind the transaction. Whether you’re supplying materials, hiring out equipment, or offering trade accounts to contractors, the fine print in your terms and credit agreements can make or break your cash flow.

At Top Service Ltd, we work with thousands of UK merchants, suppliers and plant hire firms — and we see the same challenges repeat: vague payment terms, unclear responsibilities, and risky clauses that end up costing businesses thousands.

Here’s what to watch out for in your customer agreements, and how you can protect your income before you’re chasing overdue payments.

Why Clarity in Agreements Matters

Your terms of sale or hire agreement are more than admin — they’re your first layer of credit control.

• Poorly written terms (or relying on verbal promises) can lead to:

• Disputes over delivery dates or hire durations

• Extended or unpaid credit periods

• Confusion about responsibility for damage, loss, or delays

• Legal grey areas when it comes to recovering debt

Let’s break down the essentials that every supplier, merchant, and plant hire business should review in their contracts or T&Cs.

1. Credit Terms — Define the Rules Early

Clear credit terms = faster, more successful collections.

Your agreement should state:

• Exact payment terms (e.g. 30 days from invoice)
• Consequences for late payment (interest, suspension of credit)
• Whether any discounts or penalties apply
• Your right to withdraw credit or enforce legal recovery if terms are breached

 Top Service Insight: Many customers don’t enforce the terms they have — make sure they’re not only written, but also issued, signed, and followed.

2. Delivery & Hire Dates — Avoid Disputes Later

Unclear timelines can lead to payment delays or hiring disputes.

Your agreement should clearly state:

• When delivery is considered complete

• When hire starts and ends (especially for daily/weekly charges)

• What happens in case of delays, theft, or damage

• Requirements for off-hire notice or confirmation

 If your customer says “we didn’t use it” or “we didn’t receive it,” your only defence is a signed agreement and process proof.

3. Retentions & Delayed Payment Risks

While formal retention clauses are more common in subcontracting, suppliers and merchants often face similar delays when payment is linked to project milestones or main contractor processes.

If your client says:

“We’ll pay when we’re paid”

… This is a warning sign.

Note: “Pay when paid” clauses are unenforceable under the Construction Act 1996 — you have a right to payment regardless.

 4. Dispute Clauses — Set the Ground Rules

If something goes wrong — like goods in dispute or a plant allegedly returned damaged — how do you resolve it?

Include:

• Timeframes for raising a dispute (e.g. 7 days after delivery)

• Clear return or off-hire processes

• Preferred resolution process (written notice, mediation, legal action)

 Disputes should be the exception, not the reason invoices go unpaid.

 5. Risk Clauses That Could Hurt You

Many suppliers use outdated templates that don’t reflect the realities of construction supply. Be on the lookout for clauses that:

🛡️ How Top Service Ltd Supports Suppliers & Merchants

As construction credit specialists, we help your business:

✔️ Check the creditworthiness of new customers before offering terms

✔️ Get early alerts on customers entering financial difficulty

✔️ Collect overdue accounts without burning bridges

Our team of credit management experts understand the nuances of supplying to contractors — and how to protect your cashflow from day one.

“Minimise debt, maximise cash” isn’t just our tagline — it’s our mission.

A company director behind multiple fraudulent VAT claims—including through a UK-registered construction firm—has been banned from acting as a director for 11 years.

Hassan Waqar, now based in Dubai, was the director of four businesses, including Kiani Construction Limited, which operated in the UK real estate and construction sector. All four companies submitted falsified or unsupported VAT repayment claims, reclaiming nearly £400,000 they were not entitled to. Combined, they owed HMRC over £1.1 million when they were struck off the Companies House register between February and June 2023.

Kiani Construction Limited, along with the other companies—HN Restaurants, Moneemint Ventures, and Zoya Investments—submitted forged invoices and altered bank statements. In several cases, suppliers confirmed to HMRC that the invoices provided had not been issued by them.

Waqar has now been disqualified from acting as a company director in the UK until 2036. He also faces personal liability for certain debts under HMRC’s joint and several liability powers.

“Our investigations found he failed to provide supporting evidence for claims across multiple businesses,” said Victoria Edgar, Chief Investigator at the Insolvency Service.

“The Insolvency Service is committed to taking action against directors who fail to meet their legal and financial obligations.”

What does this mean for construction suppliers?

This case is a clear reminder of the importance of due diligence when engaging with clients or subcontractors. Fraud, insolvency, and unpaid debts continue to pose a serious risk across the construction supply chain.

Top Service works exclusively with businesses in the construction sector to provide real-time credit information, risk alerts, and detailed reporting that help suppliers avoid exposure to high-risk companies before they become a problem.

Whether you’re supplying materials, managing subcontractors, or quoting for work, accurate credit data and early warning signs are essential.

Make informed decisions. Protect your business.

Learn more about how Top Service supports credit control teams in construction at top-service.co.uk

📎 Official government source:
Dubai-based director who falsified VAT returns banned after £1 million owed

The Government has appointed Emma Jones CBE as the new Small Business Commissioner, taking up the role on 23rd June 2025.

As founder of Enterprise Nation, Emma brings a deep understanding of the challenges small firms face, particularly when it comes to late and unfair payments.

“Time-poor founders are spending too many hours chasing debt. This is limiting their capacity to grow—we want to change that.” – Emma Jones CBE

In 2024, SMEs were owed an average of £21,400 in late payments.
In construction, it’s often far higher, and the impact is greater.

📖 Read the full government announcement:
👉 https://www.gov.uk/government/news/government-appoints-emma-jones-cbe-as-new-small-business-commissioner-to-help-tackle-late-payments

What This Means for Construction

At Top Service, we welcome any momentum toward fairer payment practices—but we also know change takes time. That’s why our members aren’t waiting to react—they’re acting proactively.

Using real-time, construction-specific credit intelligence, our members identify risk and tighten terms before payment problems escalate.

• Early warnings
  Shared trading experiences
  Company and Director Monitoring
  Support with debt recovery

We’re Ready. Are You?

Whether it’s poor payers or unexpected insolvencies, you need more than a promise of change. You need real tools that work now.

We’re built for construction. We’re ready when you are.

📞 01527 503990
🌐 www.top-service.co.uk

#ConstructionCredit #LatePayments #TopServiceLtd #DebtRecovery #CashFlow #CreditControl #EmmaJonesCBE #ConstructionRisk #FairPayment #SMEs

Top Service urges suppliers to act early and protect against hidden insolvency risks

A construction director who failed to explain nearly £500,000 in company bank transfers—and left creditors facing over £160,000 in losses—has been handed a suspended prison sentence following an investigation by the Insolvency Service.

Mario Huiu, former director of Incentive Services Limited, was sentenced at Thames Magistrates’ Court after being found guilty of failing to deliver critical accounting records to liquidators. His company, previously known as EMA Dry-Lining Ltd, entered liquidation in December 2020 after just seven months under its final trading name.

📄 Read the full Insolvency Service case summary here:
👉 https://www.gov.uk/government/news/construction-director-sentenced-after-failing-to-explain-almost-500000-worth-of-transfers-out-of-company-account

According to the Insolvency Service, Huiu’s misconduct left liquidators unable to verify:

• £498,480 in unexplained transfers
• £261,960 in unverified cash receipts
• The true reason the company failed with £162,482 in unpaid debts

“Directors like Mario Huiu who fail to keep accurate financial records put their creditors and trading partners at unacceptable risk,” said Mark Stephens, Chief Investigator at the Insolvency Service.

Top Service: Real-Time Credit Warnings That Could Have Helped

At Top Service, we work exclusively with the construction industry to help businesses avoid being blindsided by insolvency events like this one. Through our unique member-shared trading data, we often detect signs of financial distress months or even years before a company fails.

🔎 In many cases, delayed payments, erratic trading behaviour, or sudden credit events are reported by our members long before liquidation becomes public.

📉 Had this company been on our radar, our members would likely have seen the red flags early—giving them time to tighten credit terms, pause supply, or recover debts before being left unpaid.

Our Take: The Real Cost of Hidden Risk

Construction remains the most affected sector for insolvencies in the UK. When records are missing and accountability is absent, suppliers are the ones who pay the price.

Top Service helps construction businesses:
✅ Identify risky accounts early
✅ Avoid bad debts
✅ Make confident credit decisions
✅ Stay informed with real-time alerts and verified member feedback

Don’t Wait Until It’s Too Late

If you’re supplying contractors, subcontractors or service providers in the construction space, the risk is real—and growing.

Let’s talk about how to protect your business.
📞 01527 503990
🔗 www.top-service.co.uk

Top Service Ltd – Credit Intelligence for Construction

The latest insolvency figures are in—and once again,  the construction industry is under pressure.
In May 2025, 2,238 companies across England and Wales became insolvent:

• 8% increase from April
• 15% higher than May 2024

This includes:

• 1,734 creditors’ voluntary liquidations (CVLs)
• 354 compulsory liquidations
• 136 administrations
• 14 company voluntary arrangements (CVAs)

CVLs now account for 77% of all insolvencies, a clear sign that more businesses are choosing to close voluntarily, often due to unsustainable debts.

Construction: Still the Most Impacted Sector

In the 12 months to April 2025, 4,032 construction businesses became insolvent—17% of all cases where the sector was identified.

That’s more than:

• Wholesale and retail (3,615)
• Accommodation and food services (3,369)
• Manufacturing (1,970)

The construction sector continues to face the sharpest end of credit risk, despite demand, operating costs, tight margins, and cashflow pressures are forcing many firms to exit the market.

What’s Driving the Numbers?

While insolvency rates are still below the 2008–09 peak, the upward trend is clear:

• Insolvency rates are now 53.0 per 10,000 companies (up from 50.4 in April)
• May saw a 7% drop in compulsory liquidations (after April’s 10-year high)
• But administrations increased by 28%, indicating more companies are trying to restructure before shutting down

Our Take – What This Means for You

At Top Service, we go beyond the numbers. As the UK’s only credit reference agency dedicated solely to the construction industry, we use real-time, construction-specific trading data—shared directly by our members—to spot early warning signs of financial distress long before insolvency hits.

Often, our members report delayed or inconsistent payments from a company up to a year or more before it enters insolvency. This shared insight gives our network the edge: the ability to act early, tighten credit terms, or stop supplying altogether, potentially saving thousands in bad debt.

We’re seeing a shift in the industry: companies aren’t just paying late—they’re going under, often through CVLs, leaving suppliers exposed. This isn’t the time to just be careful—it’s the time to be proactive, and that starts with information you can trust.

If you’re supplying, contracting or subcontracting in this environment, credit risk is real—and growing.

What Should You Do Now?

• Review payment terms and tighten where needed
• Track changes in customer behaviour – missed payments, sudden CCJs, changes in directors
• Use live credit alerts to stay informed
• Act early on overdue debts – don’t wait for insolvency to strike
• Speak to experts who understand your industry

Insolvency numbers aren’t falling. Construction is still the most vulnerable industry.

At Top Service Ltd, we help construction businesses:

• Minimise debt exposure
• Make confident credit decisions
• Get paid faster
• Stay one step ahead of insolvency risk

Let’s Talk – With the right tools and real-time industry-specific data, your business can trade safely, without the surprises.

Stay ahead. Minimise risk. Maximise cash.

We’re here to help – whether it’s insight, tools, or recovery.

Call us on 01527 503990 or visit top-service.co.uk

Is the construction industry on the brink or are statistics misleading?

By Philip King.

Since 2021, the construction sector has accounted for almost one in five of all corporate insolvencies. The percentage has ranged between the lowest of 15.1% (November 2024) and the highest of 20.4% (February 2022). The percentage for all corporate insolvencies across the 10-year period from 2015 to 2024 was 17.7%, or one in every 5.65. Sadly, there’s little to suggest the number’s going to change any time soon.

The latest Government Office for National Statistics (ONS) trend figures over three months reveal an industry in stagnation, recording no net growth overall. The S&P Global/CIPS UK Construction PMI in March remained in contraction, with new orders declining for the third month in a row, and just 40% of firms expecting output to rise in the coming 12 months. The more recent Flash Composite PMI for April slid to a 29-month low of 48.2.

At the time of writing, many are predicting a cut in the Bank of England interest rate from 4.5% to 4.25% in May. While this can be beneficial for small firms that rely on borrowing, it can also lead to companies taking on debt that can hide underlying financial problems. It’s a time to be watchful and wary.

Fixed-price challenges

Firms in the construction sector struggle when fixed-price contracts prevent them from passing on rising costs. Also, cash flow suffers from hikes in material costs, project delays, and supply chain disruption. Costs are increasing, both through National Insurance Contributions and a rise in the minimum wage. Inflation is still an issue, as is the uncertainty arising from tariffs being imposed by the US. As such, it’s reasonable to assume the rate of insolvencies is unlikely to diminish across the rest of 2025.

Brendan Clarkson of PKF Littlejohn Advisory agrees. He observes that Compulsory Liquidations in February 2025 reached their highest level in 10 years as a result of HMRC and local authorities stepping up their activity and showing less forbearance than had hitherto been the case. The total in February 2025 was 49% higher than in February 2024.

Creditors are also becoming more proactive in pursuing outstanding debts and are increasingly resorting to legal action. His firm is seeing a rise in enquiries for restructuring and insolvency support, with directors seeking specialised advice on managing their business finances amidst escalating costs. Small businesses, in particular, find it challenging to pass on additional costs to customers while still wanting to remain competitive.

So what are things like on the ground? I’ve talked to some Top Service clients and members to get their views on the year so far.

Reduction in overdues

There’s a consensus that collections have performed well; relatively few bad debts have been experienced and, generally, they are of low value. A reduction in overdues is also being seen and, where customers are struggling, more are taking a proactive approach to arranging payment plans. This is a positive sign of a willingness and desire to honour debts rather than walk away and leave the supplier unpaid.

There’s less common consensus on the commercial front, however. Some have seen sales start to pick up and are feeling positive, opening more new accounts than ever, while others say trade has not increased to the levels they’d anticipated and that it’s a battleground to win business. One member observed that things are eerily good and they’re waiting for a shock!

I also asked what their main current ‘pain-points’ were and identified a variety of issues. Taking decisions without adequate information was high on the list. There are a number of reasons for this: companies filing minimum information or having no requirement to file because they are so new, and the resulting unavailability of credit insurance leading to trading at their own risk.

Requests for payment plans, and customers seeking increased credit limits, also featured. A particular difficulty was granting more credit when customers were unwilling to provide additional information, such as management accounts or draft statutory accounts. Handling the commercial pressure to offer more credit in these circumstances was also a factor causing pain.

Account analysis

One member highlighted the difficulty of reaching any form of conclusion from analysing year-on-year accounts. Everybody has had a tough year, and the majority of accounts show negative movement. Success lies in determining which had a tough year and are weathering the storm, and which had a tough year and are on their last legs.

There was common recognition of increasing instances of fraud, and the need for greater vigilance and better avoidance systems. One single instance can have a devastating impact on a company’s survival, so it’s an area that needs constant focus.

In general, and particularly in regard to collections performance, it seems that experience at the coal face is better than suggested by the more general insolvency statistics and predictions. I see a couple of possible reasons for this. Firstly, the impact of increased employment costs, US tariffs, and rising employment costs have yet to be fully felt, and it may be a matter of timing. Secondly, it’s likely that these Top Service members have best practice credit management processes, get real-time shared payment experience, and have effective systems in place. They’re more adept at spotting risks and warning signs, at being proactive in managing and minimising overdue debts, and – as I said in my last contribution to this magazine – at being willing to give and receive information about their customers which puts them on the front-foot.

Philip King FCICM is a non-executive director at Top Service Ltd

The Deputy Prime Minister has issued a clear and direct message to UK housebuilders: the time for delays is over. Backed by new planning powers and penalties, councils will now be able to hold developers to account to ensure promised homes are actually delivered.

Under the government’s Plan for Change, developers will need to commit to realistic build-out schedules before receiving planning permission. Annual progress reporting will be mandatory, and those falling behind without good reason could face a Delayed Homes Penalty—or even risk losing future permissions altogether.

These reforms aim to deliver 1.5 million new homes, prevent speculative land banking, and support working people and families locked out of the housing market. The government is also trialling a “mixed tenure by default” approach for large sites, aiming to speed up delivery by ensuring a stronger mix of affordable housing.

At Top Service, we welcome this push for greater accountability and transparency in the sector. For too long, uncertainty around project delivery has made it harder for contractors and suppliers to plan ahead. When sites stall, the ripple effects across the supply chain can be significant—from disrupted schedules to delayed payments. Measures that reinforce timely, reliable build-out benefit not just communities, but everyone involved in getting the job done.

As always, we’ll be keeping a close eye on how these changes are implemented across local authorities, and what they mean for those working on the ground.

📄 Read the full government release