Welsh government accepts housing target will be missed without more funding

Despite the need for extra funding, Mr Fitzgerald stressed that the Welsh government has “a really strong programme” and pipeline of homes.

“Most of the schemes and homes within that programme are funded – if not completely, then in part. It’s not all as gloomy as it perhaps comes across in the Audit Wales report,” he explained.

Mr Fitzgerald said there were enough homes in the pipeline to “get really close to the target”.

“What we do then is ask the sector to rank status – red, amber, green,” he explained. An internal delivery team will then look to unblock and accelerate red and amber schemes.

The government has also asked providers to identify schemes that may not be in their main development programmes, but which could be completed within the Senedd term, if funding is secured.

Jayne Bryant, cabinet secretary for housing, local government and planning, said she welcomed the report.

She said: “As Audit Wales said in their report, modelling how much it will cost to deliver the remaining pipeline is very complicated. It’s not a linear process, so we have to recognise it is a complex area.

“My officials have already responded to the recommendations, accepting all seven of those.”

These included recommendations that the government check the costs and benefits of changing the balance between new build and acquisitions and publicly report how many of the homes counted towards the target are new build and low carbon.

It also called on leaders to review how affordable housing need is calculated and develop a long-term approach to funding affordable housing.

“I want to put on record that we are providing record levels of funding to support the delivery of social housing this Senedd term, with more than £1.4bn allocated,” Ms Bryant said.

She added: “We are trying to deliver vital homes in one of the most challenging times seen in recent history.

“There’s a lot of work that has gone on and there’s a lot more to do. I remain committed to using every means possible to deliver much-needed homes for the people of Wales, both for the short and long term.”

The meeting marked Ms Bryant’s first appearance at the committee since her appointment over the summer.

Ms Bryant also gave an update on former first minister Vaughan Gething’s affordable housing taskforce, which has stalled after Mr Gething resigned.

While Jack Sargeant, minister for culture, skills and social partnership, had been due to chair the taskforce, Ms Bryant said this had not progressed due to the changes in the government. 

“The taskforce was intending to look at some key areas of blockage in housing delivery, and I can assure the committee this is something I am very keen to progress,” she said.

Ms Bryant said she would be announcing a new chair of the committee “in due course”, adding that first minister Eluned Morgan is “really keen on driving delivery”.

Former housing minister Julie James was recently appointed as the Welsh government’s new minister for delivery.

An evidence paper on social housing supply submitted by the Welsh government also gave updates on work done to speed up the planning process.

This included analysis of the “perceived planning barriers to the delivery of social housing schemes” as part of the delivery of the 20,000 homes target, which has revealed issues around sustainable drainage systems and poor-quality planning applications.

“Planning application fees do not currently cover the actual cost of processing applications in most cases,” it said, adding that a review of these fees “to cover inflation and start the journey to full cost recovery is underway”.

Another area of focus is “in relation to the introduction of a vacant site levy to deter land being held for speculative purposes”, it noted.