The Social and Economic Impact of Home Building in Wales is a research report released by the Home Builders Federation Cymru (the HBF), advocating for an increase in housebuilding that would support investment, jobs and affordable housing delivery in communities across Wales.
The HBF breaks down the benefits of the home building sector that go beyond the delivery of new homes, such as community investment, job opportunities and affordable housing subsidies.
Wales has found itself gripped in a similar way by the housing crisis as the other nations of the UK. Homelessness in Wales is at historic levels, with over 6,000 households living in temporary accommodation, many for over six months, and an estimated 90,000 people on social housing waiting lists.
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This is important context for the historic election win of Plaid Cymru earlier this year, who put housing front and centre of their election campaign. Some of the parties commitments to reversing the housing crisis include the development of Unnos, a dedicated government body aimed at assisting associations and councils in delivering further affordable housing, as well as enshrining a right to adequate housing in Welsh law.
Commitment to affordable housing
A key argument for the social benefit of housebuilder activity in Wales is the regular contributions to the country’s affordable housing stock, supplying an average of 900 homes per year through section 106 agreements. The housebuilding industry also provides £46m of direct subsidy to the affordable housing sector every year, as well as cross-subsidising roughly a third of affordable homes, a key component of affordable housing delivery in Wales.
Skills, jobs and the future workforce
The housebuilding industry in Wales provides 17,500 jobs across across sites, the supply chain and wider economic activity, roughly amounting to between 3-5 jobs per dwelling. Workers in training are also routinely supported, with the industry being responsible for bringing through 200 apprentices, graduates and trainees every year.
The HBF also call for government support on the topic of new workers. In order to match Wales housebuilding ambitions, the sector will need around 12,000 additional recruits. The report states the industry is calling for a roadmap from the Senedd to support the skills and talent pipeline needed to build low-carbon, energy-efficient new homes.
Sustainability
The report also outlines the housebuilding sector’s contributions to Wales’ environmental goals. According to the report, 90% of new build homes in Wales achieve an EPC rating of A or B, as well as emitting up to 74% less carbon than older properties. These standard will continue to increase with the implementation of new building standards according to the HBF, and features routinely incorporated into new build properties can save households around £420 a year on energy bills compared to typical older homes.
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The reports’ final statement calls for the delivery of 23,000 homes before 2030. This scale of housing delivery will deliver thousands of new affordable homes, simultaneously easing pressure on the backlog of housing need alongside market rate development.
Alongside the industry’s contribution to affordable housing, 23,000 new homes could also generate up to £65m in funding for new and improved schools, facilitating up to 3,700 new school places, as well as over £20m of investment in open spaces.
Removing barriers
The HBF discuss their ambitions for the housebuilding sector throughout the current Senedd term, but also acknowledge the barriers preventing this level of activity today. A lack of up-to-date Local Development Plan coverage is raised as a concern, alongside the financial pressures that are actively restricting viability for new developments. The report makes a number of recommendations to the Welsh government, recommendations it argues will help to break down barriers to development in the nation.
Amongst these are measures that will support the industry for both builders and buyers. These include the development of a talent pipeline roadmap, as well as extending Help to Buy Wales until September 2026. HBF Cymru also advocate for the introduction of an all-tenure target for housing delivery, additional funding for public bodies involved in the planning process, as well as moving to a stock-based approach for local assessments of housing need, addressing historic under-delivery.
The full report and it’s recommendations can be found at thinkhouse.org.
