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Welsh government eyes no-deal Brexit social housing stimulus package
The Welsh government is in discussions with the social housing sector over a potential “stimulus package” in case the UK leaves the EU without a deal next week.
Inside Housing understands that officials met sector representatives this week for talks about how affordable housebuilding could be supported in a no-deal situation through extra grant funding.
Theresa May has written to the EU to ask for a delay to Brexit. However, if EU leaders do not approve her request, the UK is set to crash out without a deal on 29 March.
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A spokesperson for the Welsh government told Inside Housing: “We have always been clear that a no-deal Brexit would be extremely damaging for Wales.
“However, it is our responsibility to do all that we can to ensure Wales is as prepared as possible for leaving the EU.
“This includes working with local authorities and organisations across Wales to support preparations.”
Last month, London mayor Sadiq Khan penned a letter to the UK government, co-signed by council and housing association leaders, which warned that the capital would need £5.2bn of “emergency” housing grant to cope with a no-deal Brexit.
Despite calls from the sector for ministers to take urgent action over the plea, it is understood that Mr Khan is yet to receive a response.
The Welsh government’s housing regulation team wrote to social landlords earlier this month setting out guidance on how to prepare for no-deal.
The regulators in England and Scotland have also issued similar advice.
Community Housing Cymru (CHC) has also published guidance for housing associations on preparing for the potential impact of no-deal, on matters including workers, materials costs and funding.
Stuart Ropke, chief executive of CHC, said: “One option in the event of a crash-out Brexit is a fiscal stimulus which would see investment in housing used as a vehicle to keep the economy moving.
“We know from action taken by government following the financial crisis that affordable housing can play a key role in sustaining economic activity.
“The reality with Brexit is that it’s still difficult to know what is going to happen, and we have to be prepared for all scenarios, including no-deal, which could possibly induce economic shock.”
