Welsh house building goals under threat
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A key election promise to build 6,500 more affordable homes in Wales by 2011 could be in jeopardy, a study has found.
A report published by the Welsh Economy Research Unit at Cardiff Business School has questioned whether build rates can continue in the current economic climate.
The study, which was launched by deputy housing minister Jocelyn Davies, states: ‘The downturn in the economy and the continuing effects of the credit crisis present a strong challenge to housing associations being able to replicate their 2007/8 performance in delivering new affordable homes, and put the focus on finding ways to overcome this strategic gap.’
In 2007/08, 1,533 new homes were built by housing associations. Of these, 842 - or 55 per cent - were funded through social housing grant. The remainder were built through planning gain, or other ventures.
The Welsh Assembly Government has said it will increase social housing grant. But the report notes: ‘However, non social housing grant provision of home is now bearing the impact of a reduction in the number of 106 agreements coming to fruition.’
The study, Measuring the Impact, says this has created a need to find other ways to increase new affordable home provision, ‘particularly through innovation by associations utilizing their own resources’.
Community Housing Cymru commissioned the research, which was launched at the charity’s annual conference.
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