Doubt over 20,000 new low-carbon homes from Wales Audit
Key Contact: Liz Gibbons
The Welsh government’s 2021 manifesto pledge to “build 20,000 new, low carbon social homes for rent” by March 2026 has garnered much attention. In a country where demand for social housing significantly outstrips supply and continues to rise, exacerbated by aging and energy inefficient housing stock, the resulting housing crisis is a major priority for Senedd leaders.
Earlier last month, however, the 20,000 figure once again hit the press as a report by Audit Wales highlighted the likelihood that the government will fall short of this target.
Earlier last month, however, the 20,000 figure once again hit the press as a report by Audit Wales highlighted the likelihood that the government will fall short of this target.
- Fewer than 50% of the 20,000 homes are secured at the end of 2023/24, despite counting some that are not new or low carbon.
- 19,913 homes either delivered or in the pipeline for March 2026 – but some of the riskier schemes may not deliver.
- 15,860 – 16,670 homes will be delivered without additional funding, Wales Audit predicts.
Why is additional budget required?
Wales Audit attributes part of the budget shortfall to “pressures outside of the Welsh Government’s control”.
In response to the report, Matt Dicks, national director of Chartered Institute of Housing (CIH) Cymru said:
“Whilst we agree that more investment is needed we also need to provide more resource to planning departments, tackle issues within our supply chains and ensure we have enough contractors to carry out the work.”
CIH Cymru highlights the need for:
- More resources to planning departments
- Improvements to the supply chain
- Addressing worker shortages
- Freeing up more public land for development
- Addressing the stigma around social housing which, it says, blocks development.
“Whilst developing new stock of a high energy standard is key, maintaining and improving existing housing stock is essential. It is crucial to understand your current stock’s quality, the downfalls and the successes.” – Social Housing team, Acuity Law
So what’s next?
Planning
The planning system is in need of change at a UK level to solve inefficiencies such as the lengthy and expensive appeals process and prolonged legal challenges and judicial reviews. The new government in Westminster has pledged to provide additional planning officers, upskill them in making proposals acceptable in planning terms (s106 negotiations) and introduce a “planning passport” for urban brownfield development. With the same issues being faced in Wales, it will be interesting to see whether Westminster’s proposed solutions will be adopted by Senedd leaders.
A collaborative approach
As the Welsh government ponders the funding predicament, all eyes will be on its response not purely in terms of the budget allocated to solving the housing crisis, but also on the biggerpicture. The Well-being of Future Generations (Wales) Act 2015 requires Welsh public bodies toconsider every decision not just in the context of prosperity, but of resilience, equality, health, community cohesion, culture and global responsibility. It’s hard to think of a better example of the importance of interconnected issues than social housing, and all eyes will be on the government to see how it
works to not only meet its own target but do so in a way that solves (or at least doesn’t exacerbate) longer-term issues as well.
As Adrian Crompton, Audit General, says: “How the Welsh Government responds will further test its application of the ways of working expected under the Well-being of Future Generations (Wales) Act 2015. This includes how it balances short-term and long-term needs, builds on its collaborative approach, and looks to maximise positive outcomes from the significant public expenditure in this area.”
On the subject of meeting the target for 20,000 homes, Julie James, Wales’ minister for delivery yesterday told the BBC that “We were hanging on to that by the skin of our teeth as a result of the pandemic and the cost of living crisis but we can still do it.”
If you’re a Housing Association in need of assistance with development work, please contact our Social Housing team.
