A leading planning and development consultancy has highlighted the renewed opportunity in tackling the chronic housing shortage across Wales.
The recent appointments of Eluned Morgan as Wales’ first female housing leader and Jayne Bryant as Cabinet Secretary for Housing, Local Government and Planning mark a pivotal moment for Welsh housing policy, says Lichfields. These changes come at a time when decisive action is urgently needed to address the country’s escalating housing crisis, it says.
Lichfields, which provides strategic planning and development support across Wales, is calling on the new ministers to act swiftly and effectively. With 2023/24 recording some of the lowest new home completions in Wales’ history, it is critical to implement impactful planning reforms now, it says, adding that the fresh leadership provides a unique chance to create necessary change and close existing policy gaps in housing delivery.
Gareth Williams, Senior Director at Lichfields, said:
“The new Cabinet appointments present a huge opportunity to drive forward necessary housing reform. There is a pressing need for an actionable strategy that addresses the barriers impeding Welsh housing delivery. These barriers, including planning delays, land availability issues, and industry constraints, have significantly hampered progress.
“In England the Labour Government is also calling for increased housing provision and planning reform, emphasising that they are fundamental not only for meeting housing needs but also for driving economic growth. Chancellor Rachel Reeves has repeatedly highlighted how increased housing delivery and planning reform are key economic drivers.
“These housing challenges are even more pronounced in Wales, where the responsibility for planning policy lies with the Welsh Government. It is very much hoped that the Labour administration in Wales follows the lead of their UK counterparts, setting ambitious targets and implementing effective measures to boost both affordable and open market housing, tailored to the specific needs and circumstances of housing requirements in Wales.
“By doing so, the Welsh Government can ensure that housing delivery matches demand and also serves as a significant driver of economic growth across the country.”
The Welsh housing sector is currently grappling with significant challenges, including a substantial shortfall in housing delivery that fails to meet the growing demand, says Lichfields. Despite the continued rise in housing need and escalating house prices, Wales has seen a significant decline in house building over the past 25 years. The current average output of 5,110 new homes per year contrasts sharply with the 9,200 homes built annually in the 1990s. This shortfall is exacerbated by a national policy vacuum, particularly in relation to open market housing, it says.
The consultancy says that addressing barriers and outdated Local Development Plans (LDPs) is crucial. The new leadership is well-positioned to advocate for planning reforms that enhance predictability and streamline development processes, it says.
Gareth added:
“Whilst the focus on affordable housing is essential, it is equally important to support open market housing. A balanced approach can stimulate private sector contributions to affordable housing through Section 106 agreements and other mechanisms.
“Reintroducing key planning policies, such as the requirement for a five-year land supply, can address current challenges, create up to date LDPs and support robust, sustainable housing development. In turn, this will help meet growing housing demand, drive economic growth and, ultimately, build thriving and resilient communities across Wales.”
