A new report by leading planning and development consultancy Lichfields calls for a more comprehensive housing strategy in Wales.
Whilst efforts to increase the supply of low-carbon social housing are commendable, Lichfields’ analysis reveals that this narrow approach misses the larger picture.
The Welsh Government’s current focus on affordable housing alone will not solve the deepening housing crisis, which requires a more holistic strategy that addresses both supply and demand factors.
The report, titled “Affordable housing in Wales: Does more of less really mean more?” highlights that the key to improving housing affordability lies in expanding overall housing delivery, not just affordable homes.
It identifies several barriers to achieving the Welsh Government’s target of 20,000 low-carbon social housing homes by 2026. Current efforts, which focus too specifically on delivering subsidised rental homes, do not address the underlying shortage of total housing supply, which remains the primary contributor to the housing crisis. Lichfields’ analysis shows that expanding overall housing delivery would not only increase the supply of affordable homes but also enhance the viability of broader housing goals.
Rhiannon Harrop-Griffiths, a planner at Lichfields and co-author of the report, said: “Our findings show a need for a shift in strategy. By increasing the overall housing stock, the Welsh Government can both increase the stock of affordable housing and improve affordability across all sectors, making housing more accessible to a wider range of people.
“Simply focusing on low carbon social rent in isolation risks perpetuating the shortage of homes across all tenures. A more holistic approach that balances the need for social and affordable housing with private market housing would not only help meet the diverse needs of Welsh communities but also stimulate economic growth through job creation and rebalance communities where young families are excluded from the housing market.”
Key recommendations from the report include adopting a more robust methodology in identifying future need for both affordable and market housing, facilitating higher levels of private sector housing delivery in recognition of its role in providing affordable housing, and revising housing requirements in Local Development Plans to more accurately identify future levels of housing need. The report also calls for greater collaboration between public and private sectors to overcome viability challenges and support sustainable housing growth.
Gareth Williams, a Senior Director at Lichfields, added: “Our research shows that a restrictive definition of affordable housing and a lack of focus on broader housing delivery are hindering progress. By widening the scope to include different housing types and market dynamics, the Welsh Government can better balance supply and demand, ultimately alleviating pressure on the housing market.”
The full report can be downloaded and read here: https://lichfields.uk/content/insights/affordable-housing-in-wales