The ambition to build 20,000 new homes in Wales is being significantly hampered by a planning system that developers describe as needing a "complete overhaul." Matthew Davies, a spokesperson for the Home Builders Federation, stated that planning applications are currently taking between three and five years to process, far exceeding the one to two years he believes are necessary to meet housing targets.
This target was a key commitment in the Plaid Cymru manifesto for the Senedd election and mirrors a goal set by Labour during its previous five-year term. Plaid Cymru has pledged to achieve this target within the next four years, while also advocating for reduced regulations on building and purchasing social homes.
Social homes are provided by local councils and housing associations, with their rents and housing quality overseen by the government, which also finances new construction. In the last Senedd term, the Welsh government allocated over £2 billion to social housing. However, the costs associated with building these homes have escalated due to rising prices and more stringent building standards. Audit Wales, a spending watchdog, reported that the government grant required per home increased by 75% over four years, from £93,000 to £163,000.
Consequently, there are increasing calls for the Welsh government to allocate additional funding for housing construction to offset these rising costs. The government is expected to release further details next week on how it will track progress toward the 20,000-homes target.