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Level of funding for Welsh Housing Quality Standard changes unlikely to match ambition, Welsh landlords warn

Membership bodies in Wales have welcomed the government’s new Welsh Housing Quality Standard (WHQS), but have concerns about the timescale to deliver the plans, and the levels of funding.

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Member bodies in Wales have concerns about the new WHQS (picture: Alamy)
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Membership bodies in Wales have welcomed the government’s new Welsh Housing Quality Standard (WHQS), but have concerns about the timescale to deliver the plans, and the levels of funding #UKhousing

The Welsh government announced earlier this week that the new WHQS would replace the existing standard to “better reflect changes in the way people live, work and feel about their homes”.

However, the Chartered Institute of Housing Cymru (CIH Cymru) has warned that the funding landscape appeared to be at odds with the ambitious timescale for delivery.

As well as focusing on affordable heat and decarbonisation, the standard also looks to improve the comfort of homes, including up-to-date kitchens and bathrooms, and general well-being.

All habitable rooms, staircases and landings located within a home should have suitable floor coverings at the change of tenancy, alongside improving issues such as damp and mould, broadband access and building safety.


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Climate change minister Julie James announced an additional “£22.5m across this year and next” as part of the plans. This is on top of the money still available through the Welsh government’s Optimised Retrofit Programme (ORP).

The total ORP funding made available to landlords to date is around £270m.

The government said it had also allocated £70m to landlords this financial year on a formula funding basis, and there is a commitment for a further £70m next year.

In its response to the announcement, CIH Cymru highlighted the Future Generations Commissioner for Wales’s Homes Fit for the Future: The Retrofit Challenge.

The report compiled by the New Economics Foundation found a £2.7bn funding gap in the amount needed to retrofit social housing, and a £3.9bn gap to retrofit homes in fuel poverty in Wales.

It says the total investment needed over the next decade to retrofit social housing stock in Wales is £5.52bn, with around £1.7bn of that to come from the Welsh government and the rest from Westminster.

The government in Wales said it was aware of the estimated figures contained in this report.

Matt Dicks, director of CIH Cymru, said: “Whilst the sector is committed to working in partnership with the Welsh government, lenders and other stakeholders to find innovative ways to draw in the investment required to make this shared ambition a reality, meeting the WHQS 2023 standards will be challenging for the housing sector in Wales.

“Whilst we welcome the Welsh government’s aim in building on the successes of the original WHQS, ensuring the provision of good-quality homes, this cannot be done without sufficient funding.

“There must be long-term certainty from the Welsh government linked to financing activity to decarbonise existing homes at pace. The level of funding outlined is not likely to be able to meet this aim, due to ongoing inflationary pressures of housing organisations’ wider operating environment.”

A similar point was made by Stuart Ropke, the chief executive of Community Housing Cymru.

He said: “We welcome the Welsh government’s ambition to further improve the quality of social homes for tenants, especially around decarbonisation, which builds on the sector’s hard work to fully comply with the previous Welsh Housing Quality Standard.

“Welsh housing associations now stand ready to support these new aspirations, but to achieve them we need long-term funding certainty and a deliverable plan, one which takes advantage of technology, develops a Wales-based supply chain and provides an economic boost to our communities.”

From the residents’ point of view, TPAS Cymru said “there are lots of positive initiatives in this standard, and we are particularly pleased to see the inclusion of new flooring standards”.

However, the body for residents in Wales said there was concern that tenants would become “guinea pigs” for unproved solutions, and that any programmes of work needed to be co-produced with tenants.

David Wilton, chief executive of TPAS Cymru, said: “WHQS 2023 is a vital and positive step to creating better social housing in Wales. It looks to achieve essential affordable warmth for tenants whilst making a big step in reducing Wales’s carbon footprint.

“Tenant voices are an essential tool to successful outcomes. We need transparency of how tenants will be involved during this exciting retrofit decade.”

A Welsh government spokesperson said: “The challenge of upgrading social housing is extensive and we recognise that grant funding is part of the solution.

“We will continue to work with the sector to explore long-term funding options to support social landlords and their tenants.”

It was also announced earlier today that social housing landlords in Wales will be able to increase rents by a maximum of 6.7% from April next year.

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