United Kingdom: Independent Affordable Housing Supply Review
Introduction
Affordable housing plays a pivotal role in community well-being, economic stability, and social equity. The Chartered Institute of Housing (CIH) Cymru’s evidence for the Independent Affordable Housing Supply Review underscores the pressing need to address housing challenges in Wales through comprehensive strategies. This submission highlights key areas such as housing demand, funding mechanisms, rent policies, construction innovations, and public land use, offering solutions to meet current and future needs while improving affordability and quality standards.
Understanding Housing Need
Wales faces a significant housing crisis, exacerbated by stagnant wages, rising house prices, and an undersupply of affordable homes. Homelessness remains a critical issue, with over 60,000 households on waiting lists for social housing. The Welsh Government’s efforts between 2011 and 2016 yielded notable results, including building 11,508 social rental homes and repurposing 10,948 long-term vacant properties. However, changing demographics and economic pressures necessitate a broader approach to understanding and meeting housing needs.
CIH Cymru advocates for embracing renting as a viable long-term tenure, drawing inspiration from countries like Germany and Switzerland, where tenant stability fosters market balance. Addressing affordability challenges requires recalibrating tenure mixes, with greater emphasis on social and intermediate rental housing. Furthermore, accessible and adaptable housing must be prioritized to meet the needs of individuals with disabilities, who represent 25% of Wales’ adult population.
Grant Allocation and Intervention Rates
Effective funding mechanisms are vital for increasing affordable housing supply. CIH Cymru emphasizes the need for long-term certainty in grant levels to enable strategic planning and attract private investment. Collaborative approaches, such as joint procurement and partnerships between housing associations, can enhance efficiency and reduce costs.
Innovative financing models, including joint ventures and borrowing from local authorities, have demonstrated success in delivering affordable housing. For example, in North Wales, leveraging shared resources has mitigated skill shortages caused by large infrastructure projects like Wylfa Newydd. These approaches highlight the importance of flexibility and innovation in funding strategies.
Rent Policies for Housing Supply
Balancing affordability with financial sustainability is crucial for rent-setting policies. CIH Cymru proposes exploring rent freedoms for social landlords, allowing them to adapt rents to local market conditions while ensuring affordability. Linking rents to income, as seen in the Joseph Rowntree Foundation’s “living rent” model, could alleviate poverty and improve tenant stability.
Tenant participation and transparent governance are essential components of any rent policy reform. Ensuring that rental income supports new developments and community infrastructure is a shared responsibility of landlords and policymakers. Additionally, broader affordability considerations, such as energy efficiency and overall living costs, should inform rent policies.
Development Standards and Quality for Housing Supply
Maintaining high standards for affordable housing is imperative to ensure sustainability and tenant well-being. The Development Quality Requirements (DQR) in Wales have set a benchmark for building energy-efficient, adaptable homes. However, balancing these standards with the urgency of delivering more homes is a persistent challenge.
CIH Cymru supports incorporating zero-carbon and energy-positive designs into future developments, leveraging insights from the Innovative Housing Programme. Public engagement and tenant education are critical to ensuring the successful adoption of these technologies. Retrofitting older homes to meet higher standards should also be prioritized, ensuring no disparity between new and existing housing stock.
Role of Local Authorities
Local authorities are integral to addressing housing challenges, but capacity constraints and regulatory hurdles often limit their contributions. CIH Cymru highlights the need for consistent funding, streamlined planning processes, and greater collaboration with housing associations and private developers. For non-stock-owning authorities, partnerships with Registered Social Landlords (RSLs) can bridge resource gaps and accelerate development.
Ensuring access to accurate land data and fostering joint initiatives across local government boundaries will enable better strategic planning. The creation of a public sector land bank, supported by comprehensive databases, can facilitate the efficient use of land for affordable housing projects.
Modern Methods of Construction for Housing Supply
Embracing modern methods of construction (MMC), such as off-site manufacturing, can accelerate affordable housing delivery without compromising quality. MMC offers numerous benefits, including reduced material waste, faster production, and lower environmental impact. However, barriers such as limited training, skill shortages, and reliance on imported materials must be addressed.
The Welsh Government’s Innovative Housing Programme has showcased the potential of MMC, but scaling these solutions requires long-term investment and workforce development. Local authorities and RSLs must also receive support to integrate MMC into their projects, driving down production costs and boosting supply.
Leveraging Public Sector Land for Housing Supply
Strategic use of public sector land is critical for housing development. CIH Cymru advocates for “less than best value” land disposals to prioritize social value over monetary returns. Collaborative projects that integrate housing with healthcare, education, and community services can maximize the impact of public land.
Creating a centralized public sector land bank and streamlining the planning process will enable local authorities to identify and develop sites more efficiently. Successful examples, such as Newydd Housing Association’s redevelopment of a former training centre in Barry, demonstrate the transformative potential of such initiatives.
Conclusion
The housing challenges in Wales demand a multifaceted response, encompassing policy reform, innovative funding, and collaborative approaches. By addressing barriers in planning, construction, and funding, while maintaining a focus on affordability and quality, Wales can build a sustainable housing system that meets the needs of its diverse communities. CIH Cymru’s evidence highlights the critical role of housing in fostering social and economic resilience, urging stakeholders to adopt long-term, integrated solutions.
For further reading:
Making Housing Affordable Again – final report of the Affordable …
(PDF) Housing affordability: a framing, synthesis of research and …