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Welsh housing sector calls for grant system overhaul
Housing bodies in Wales have called on ministers to overhaul the grant system as part of the Welsh Government’s affordable housing policy review.
In response to a consultation on the review, Community Housing Cymru (CHC), which represents Welsh housing associations, warned that fixed grant rates “are not maximising the delivery of affordable homes in Wales, and do not sufficiently recognise the reality of developing in some markets”.
And it said the current model, where grant is distributed to councils on a formula basis, “does not allow provision to fully match housing need”.
The Chartered Institute of Housing (CIH) Cymru said greater certainty on future grant levels “is vital for social housing providers”, while CHC called for “greater flexibility and longer-term planning” on grant.
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Both organisations also called for social landlords to be given extra freedoms on rent setting and warned that current planning system in Wales are holding up affordable development.
And they urged the Welsh Government to provide certainty on Dowry Gap funding – which is paid to stock transfer housing associations to help them meet the Welsh Housing Quality Standard.
CHC said large-scale stock transfer associations could build at least 3,000 extra homes with long-term assurance on the Dowry.
Stuart Ropke, chief executive of CHC, said: “We are a sector with huge ambitions, but a number of challenges and barriers to overcome to deliver this.
“The sector response to the independent panel’s call for evidence shows it is absolutely vital we evolve and adapt the way we work, or risk embedding the housing crisis for future generations.”
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The affordable housing review, launched by the Welsh Government in April, will present early conclusions from its consultation in November, with final recommendations due next April.
It is chaired by Lynn Pamment, government and public services lead at PricewaterhouseCoopers.
Housing associations in Wales have committed to build 75,000 homes by 2036.
“We have an enormous opportunity to focus minds across politics and society on addressing the housing crisis in Wales,” said Matt Dicks, director of CIH Cymru.
“Our discussions ranged from the need to invest in improving the condition of homes across all tenures, providing certainty in the level of grant funding social housing providers can expect and making sure housing demand is informed by people’s needs and aspirations in addition to the traditional data.”
CIH Cymru’s response to the consultation is attached.
