Sector calls for above-inflation housing investment in response to draft Welsh Budget

The detail on investment specifically for housing is expected on 3 November, while the Welsh government hopes to pass the draft Budget in the Senedd in January. 

In an oral statement to the Senedd on Tuesday, cabinet secretary for finance and Welsh language Mark Drakeford said there could be a “more ambitious budget” using £380m of unallocated funding, but this “requires the participation of other political parties”.

The total housing and local government proposed allocation of £6.99bn for 2026-27 includes £5.69bn of “fiscal resource” and £1.3bn for capital. 

CIH Cymru national director Matt Dicks said they “welcome the indicative budget allocation” for housing and local government in the draft Budget.

He continued: “Yet it is unclear what proportion will be for housing-related expenditure and how much is for local government. 

“There is a need to ensure that the allocation for housing-related expenditure is reflective of the deepening housing emergency in Wales and the level of investment needed to effectively tackle it.”

Mr Dicks also pointed to CIH Cymru’s recent manifesto, which called on the government to enshrine the right to adequate housing into Welsh law.

Community Housing Cymru said it is “crucial” that this Budget “continues to prioritise investment in building more social homes”. 

The membership body added: “To meet the challenges facing the housing association sector, we need to see increased investment in both capital and revenue funding above the inflationary uplift set out in the outline draft Budget. 

“We will closely review the detailed allocations to housing when this is published in early November.”

The Budget for the current financial year included an £81m uplift in funding for the Social Housing Grant and Transitional Accommodation Capital Programme, as well as an additional £21m for the Housing Support Grant, which funds frontline housing and homelessness services.