Investment meeting ambition – CIH Cymru welcomes Welsh Government budget’s housing commitment

The Welsh Government has released its draft budget for 2022/23, detailing both its forthcoming spending commitments in addition to its plan for spending in the coming years.

Minister for Finance, Rebecca Evans MS, outlined the emphasis of the budget in supporting Wales to become a greener nation and deliver on the government’s commitments to tackle the climate and nature emergency.

The budget has been viewed as a key event to understand how the government plans to support the sector to deliver 20,000 low-carbon social homes, decarbonise existing homes whilst improving the quality and safety of homes at pace.

The budget has set out a number of key areas for investment for the housing (up until 2025) sector including:

• £1bn capital investment in building new social housing including Social Housing Grant - £310m 2022/23; £330m 2023/24; £325m 2024/25
• £580m to support decarbonisation of existing social housing
• £375m capital investment in building safety
• £100m for the Warm Homes Programme (aimed at tackling fuel poverty)
• £60m to support an increase in market housing
• £8.5m investment in the Homebuy scheme
• £3.5m to expand the private rented leasing scheme
• £1m in revenue funding to establish Unnos (an independent construction company to help deliver social housing)
• An additional £27.5m for homelessness prevention service

Matt Dicks  |  national director, CIH Cymru

This budget places us in no doubt over the priority this government gives to the support of high-quality social and affordable housing. We know that the 20,000 low carbon social housing target, combined with improving the quality of existing homes and addressing building safety concerns is a tall task in any climate. But in order to deliver on that ambition, CIH Cymru has consistently made the case for the Welsh Government to provide guarantees over longer-term funding so that our members, and the organisations they work for, can deliver at the pace and scale needed. Today, we see that commitment and welcome the Government’s ambition to create a greener more sustainable future where many more of us have a safe, affordable and sustainable place to call homes. But at a time of great uncertainty, with the ongoing mitigation of the COVID-19 pandemic, a general shortage of building supplies, a cost of living crisis severely impacting many households we must view today’s commitment as the starting point. Lastly, as we embark on a period where we have a real opportunity to incorporate a right to adequate housing into Welsh law, we look forward to sharing the findings of a comprehensive cost benefit analysis in the summer of 2022 – which we hope will further cement an understanding of what a rights-based approach to housing could achieve for both citizens in Wales and the pressures and demands on other equally vital public services, such as the NHS.