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Welsh government could buy up building materials to tackle shortages, says minister
The Welsh government could buy up building materials in short supply to help the social housing sector to keep developing, Julie James has suggested.
Addressing the TAI 2021 conference today in her new role as minister for climate change, which includes responsibility for housing, Ms James expressed a desire to support supply chains “right across social housing”.
During a Q&A session, the minister was asked by Helen White, chief executive of Taff Housing Association, about what steps the Welsh government could mitigate a predicted 30% surge in the cost of building materials.
She replied: “It is already becoming an issue – we’re hearing reports of rapidly rising costs in wood and various other bits of the supply chain.
“So one of the things we’re really keen on doing is working with you to understand what that looks like, and seeing if we can facilitate much larger procurement programmes.
“So basically we can use the government buying power to buy up some short supply things in advance.”
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Ms James added that she is keen “to make sure that we can use recycled materials in our housing as well to further decarbonise the chain”, and said the Welsh government would “welcome” a partnership with the social housing sector over its promised new National Forest for Wales.
Housing associations and councils across the UK are currently grappling with soaring prices and dwindling supplies of construction materials thanks to a combination of Brexit, the coronavirus pandemic and the Suez Canal blockage.
During her speech, Ms James also provided more details on its commitment to deliver 20,000 new low-carbon homes for social rent over the next five years.
She revealed that the target will include “a small proportion of acquisitions” in order “to help ensure we can quickly move those currently in temporary accommodation on to permanent homes”.
And she said the Welsh government is working on setting targets for decarbonising new housing schemes it funds.
The minister also emphasised her desire to see homes built towards the 20,000 target made part of mixed-tenure schemes.
“Mixed-tenure developments avoid polarisation and the stigma associated with the mono-tenure developments of the past, and they help foster social cohesion, develop stronger communities and can provide opportunities for economic progress,” she told delegates.
“I really do know that this is a big ask, but I’m confident that together we can deliver it.”
In addition, Ms James said the Welsh government was seeking to implement “on a phased basis” its new standard viability model for allocating grant funding, having made £250m available for social housebuilding during this financial year.
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