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Welsh council warns £500m decarbonisation costs will impact home delivery targets
Swansea Council has warned that Welsh government targets on decarbonisation could impact the number of homes it is able to build through its Housing Revenue Account (HRA).
The council’s latest HRA business plan said it had carried out initial estimates that put the cost of meeting the government decarbonisation goals for social housing at £300m-£500m.
It warned this was not currently affordable within its business plan, adding that potential government requirements to decarbonise council housing “will directly impact financial headroom for delivery of its More Homes programme”.
Swansea Council has set a target to deliver 1,000 new council homes over the next 10 years, a portion of which will be built in partnership with housing associations and developers.
In July last year, a Welsh government-commissioned report recommended the government set a deadline of decarbonising all homes in Wales by 2050, with a 2030 deadline for all social homes.
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Housing minister Julie James has accepted the report in principle, however more detailed information with regards to the exact requirements of the decarbonisation programme are yet to be announced.
A spokesperson for Swansea Council said: “We are continuing our discussion with the Welsh government in relation to the long-term issue of decarbonisation.
“Swansea is fully supportive of lowering carbon emissions and is already actively developing new homes in the city through our More Homes initiative that helps achieve this.
“It’s vital we plan ahead for More Homes and have given a commitment to developing many more quality council homes in the next 10 years.
“Once we know more about the decarbonisation programme for Wales we will be in a better position to manage our HRA accounts in the following years to ensure our commitments for improved energy efficient housing in the city continues.”
A Welsh government spokesperson said: “We are determined to respond to the climate change emergency and to protect social tenants from fuel poverty, but recognise the challenges around the process of decarbonisation of homes and associated costs.
“Swansea Council’s costs for these particular homes reflect they are prototype decarbonisation works. We are confident costs will reduce in due course as the supply chain responds to demands...
“We will not shy away from establishing demanding energy efficiency targets for all social homes in the update to the Welsh Housing Quality Standard, following the achievement of the current standard by the end of this year.
“To help landlords prepare, work is underway in Wales to model the extent of works required to decarbonise existing social homes and research commissioned by the Welsh government involving three landlords is due to report later this year.”
