Senedd report calls for national development corporation to boost housebuilding in Wales

Earlier this year, Julie James, who was at the time the Welsh cabinet secretary for housing, local government and planning, said the government was “hanging on” to the 20,000-home target “by the skin of our teeth”.

The committee believes the government should increase the amount spent on social housing to build 60,000 more homes, with the ultimate aim that 20% of Wales’ housing stock will fall into this category, up from the current 16%.

As part of this plan, the Development Bank of Wales should become a direct funder of social housebuilding, potentially offering more favourable terms to those currently offered to social landlords by private investors.

The bank is funded by the Welsh government and finances businesses to help them grow across the nation.

In addition, the inquiry report looked at need and why there are long waiting lists for people needing different types of housing.

It heard that many of the properties available through social housing are two or three-bedroom homes, which are prioritised for families, meaning that people needing one-bedroom properties are stuck on waiting lists for longer.

To combat this, the committee urged closer collaboration with local authorities and housing associations to make sure there are enough one-bedroom homes being built to reduce the pressure on waiting lists.

It suggested this can be done by acquiring existing one-bedroom properties, building on vacant land near housing developments, remodelling bigger houses into smaller houses, and bringing flats above high street shops back into use.

Organisations such as the Planning Officers Society Wales and Chartered Institute for Housing Cymru told the committee that there is a “massive demand” for one-bedroom homes.

John Griffiths, chair of the Local Government and Housing Committee, said: “Today’s report shows that the Welsh government has a long way to go if they are to reach their target of 20,000 new homes by 2026.  

“A crucial part of delivering this is ensuring that there is a suitable mix of homes being built, which must include more one-bedroom properties. The Welsh government must work with local authorities and housing associations to make sure that this message gets through.”

He called on the Welsh government to look at all the options at its disposal to tackle this problem.

Mr Griffiths added: “Empowering the Development Bank of Wales to become a direct funder of social housing developments is one way to boost the number of homes being built.  

“If we want to get to grips with the housing crisis, then we have to build more social housing urgently – before the waiting lists get even longer.”

In response to the report, the Welsh government said it was important to recognise the past few years have been marked by unforeseen global events leading to record and sustained high levels of inflation and increases in the costs of building.

It also admitted that it is more challenging than ever to deliver new build homes under current conditions, but pointed to a range of initiatives it has launched to help meet housing needs, such as the Transitional Accommodation Capital Programme and Leasing Scheme Wales.

A Welsh government spokesperson said: “Tackling homelessness and delivering more homes is a key priority for this government, and we have set a challenging target and allocated record levels of funding to housing supply this Senedd term, with more than £1.4bn invested so far.

“We thank the committee for its work and for the evidence submitted to inform this report into social housing supply. We will now consider the findings and recommendations and will respond in due course.”

Earlier this month, the Welsh government launched a new affordable homes taskforce. Inside Housing understands that it met for the first time this week and discussed the challenges and practical action that can be taken to drive forward its delivery targets.

As the Senedd wrestles with delivery targets, it has also pledged to introduce a Building Safety Bill in Wales before the government’s summer recess in 2025.