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Welsh government boosts funding for new social homes by £20m as part of Plaid Cymru’s first budget tweaks
The Welsh government has allocated an additional £20m of funding for the delivery of new social homes in this year’s Budget.
Welsh government boosts funding for new social homes by £20m as part of Plaid Cymru’s first budget tweaks #UKhousingThis week, the recently elected Plaid Cymru government set out its first Supplementary Budget for 2026-27, which made in-year changes to the current spending plans.
It included a £20m increase to capital funding under the Welsh Social Housing Grant, which takes total funding to just under £466m for the current financial year.
Sector bodies have welcomed the boost to development funding, but highlighted concerns around decarbonisation funding as well as the Housing Support Grant.
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The Chartered Institute for Housing (CIH) pointed to analysis by Alma Economics that suggested £671m would be needed annually under the Social Housing Grant in order to reach Plaid Cymru’s target for 20,000 new social homes by the end of this Senedd term.
Matt Dicks, director of CIH Cymru, said: “We warmly welcome the uplift in funding for social housing development, which will support registered social landlords to deliver more of the homes Wales so urgently needs.”
But he said new supply must “go hand in hand” with investment in existing homes.
“That is why it is disappointing that decarbonisation funding has not increased. We urge Welsh government to provide sufficient funding for both new supply and decarbonisation so that, together, we can deliver safe, sustainable and affordable homes for communities across Wales,” Mr Dicks added.
Clarissa Corbisiero, deputy chief executive at Community Housing Cymru, said the further in-year investment in social housing “indicates this new government’s commitment to ending the housing crisis”.
She continued: “Housing associations are ready to turn housing recovery into reality, giving more people the security of a safe place to call home.
“However, we have concerns over a flat cash settlement for the Housing Support Grant, which funds housing advice and support services, crucial in preventing and responding to homelessness.
“Looking ahead to autumn, we need a long-term plan that provides a sustained commitment for housing associations to deliver more homes, better homes and healthier and fairer places. This includes additional investment to keep people from reaching housing crisis.”
The Supplementary Budget was laid before the Senedd on 23 June, and will be debated in mid-July.
In a speech to the Senedd earlier this month, Siân Gwenllian, the new cabinet minister for housing, promised to “work relentlessly” with landlords to deliver her party’s new social homes target.
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