Calls for Planning Reform to Boost Welsh Housing Construction
House builders in Wales have stated that the country's planning system requires a comprehensive overhaul to meet housing demands. Both social landlords and private sector developers have expressed concerns that obtaining development permissions currently takes an excessive amount of time.
Housing associations, which provide affordable rental homes, are also requesting additional funding to achieve the Welsh Government's target of constructing 20,000 social homes by 2030.
The Welsh Government affirmed its commitment to this target, noting that an extra £20 million was allocated in its recent spending review to support the initiative.
Delays in Planning Affect Housing Projects
Beacon Cymru, a housing association, highlighted delays caused by the planning system across Wales. It referenced a project involving 51 new apartments in Tonypandy, Rhondda Cynon Taf, where tenants are expected to move in seven years after acquiring the former Big Shed site.
"We understand that there are resource pressures, but when you look at the time constraints and the delays – we need a system that is more cohesive, more efficient and is getting these applications such as the Big Shed through quicker." - Luke Takeuchi, Chief Executive of Beacon Cymru
Housing Needs and Construction Rates
The Welsh Government estimates that 9,400 additional homes are required for individuals without permanent housing. It also projects an annual need for 8,700 new homes of all types, including private and social housing, up to 2030.
However, the latest data published on 9 July indicates that only 5,159 homes were completed in the previous year. Although this figure represents an 11% increase from the prior year, the industry notes that construction levels have not yet returned to pre-pandemic standards.
Industry Perspectives on Planning System Challenges
Luke Takeuchi emphasized the necessity of revising planning laws to expedite development processes.
Matthew Davies, a Pontypridd-based builder and spokesperson for the Home Builders Federation, stated:
"The reason generally that there is a big gap is due to the planning system. There is land availability to meet the target, but the planning system needs a complete overhaul eventually. A planning application is taking between three and five years. That needs to be reduced to one to two years in order to achieve this target."
BBC Wales reports that the government plans to release further details on monitoring progress toward the 20,000-home goal early next week.
Political Commitments and Housing Targets
The 20,000 social homes target was a manifesto pledge by Plaid Cymru during the Senedd election and was also the target during Labour's previous five-year term. Plaid Cymru has committed to achieving this target within four years and intends to reduce regulations related to building and purchasing social homes.
Social homes are provided by councils and housing associations, with rents and housing quality regulated by the government, which also funds new construction.
Funding and Cost Challenges in Social Housing
Over £2 billion was invested by the Welsh Government in social housing during the last Senedd term. Rising prices and enhanced building standards have increased costs, with the government grant per home rising 75% from £93,000 to £163,000 over four years, according to Audit Wales.
Clarissa Corbisiero, deputy chief executive of Community Housing Cymru, which represents housing associations in Wales, noted that increased costs require the government to allocate additional funds and develop a long-term strategy to address the housing emergency.
"We would like to see the government look at the money it puts towards housing in the budget later this year. The cost of delivering homes has gone up. We would like to see the budget settlement reflect that."
Government Response and Initiatives
Housing Minister Sian Gwenllian has described the shortage of homes as a "housing crisis" and pledged to work "relentlessly" to meet the 20,000 social homes target.
The government plans to establish a national agency named Unnos, which will assist councils and housing associations with planning applications, land acquisition, and funding for housing projects.
A Welsh Government spokesperson stated:
"We are committed to delivering 20,000 additional social homes by 2030. Backed by an additional £20m in the draft supplementary budget, this commitment will help tackle homelessness, reduce reliance on temporary accommodation, and ensure people across Wales have access to quality, energy efficient homes."
