The Chartered Institute of Housing’s (CIH) Welsh branch has responded to the Welsh Government’s draft budget for 2026-27, expressing support of some aspects and disappointment in others
CIH Cymru is critical of the Welsh Government’s decision to only assign an inflationary uplift for decarbonising homes.
However, they are also supportive of the decision to provide a large grant for social housing, including support for financial transactions capital and loan support.
The Welsh draft budget accounts for 2.21% inflation
The detailed draft budget sets out the following investments:
- £445.9m for social housing grant which includes £26.8m in additional financial transactions capital to support loans to registered social landlords for home building
- £110m for Dowry gap funding and major repairs allowance
- £96.9m for decarbonisation
- £2.3m to meet initial costs for the Homelessness and Social Housing Allocations (Wales) Bill
- £38.25m capital funding and £3.7m revenue funding for the Warm Homes programme
- £1.3m for Academi Wales
- £223.8m for homelessness support and prevention.
This shows a commitment to build the additional homes, especially social homes, that the country needs. However, only an inflationary uplift has been allocated for decarbonising homes, which does not align with the CIH’s manifesto, A plan for housing in Wales.
Decarbonising homes and building homes need equal attention
In order to solve the housing crisis, and tackle climate change, the CIH say that construction of social housing and decarbonising existing homes must work in tandem.
Matt Dicks, national director of CIH Cymru, said: “Wales is in the midst of an ongoing structural and systemic housing emergency. Currently 90,000 households representing 170,000 individuals including 34,000 children are waiting for a social home. In 2024/25 one in every hundred households became homeless and in August 2025 there were 11,029 individuals living in temporary accommodation and 168 people were sleeping on our streets.
“It is clear that we need more social and affordable homes to help meet the rising levels of housing need in Wales and as such we welcome the uplift in social housing grant to enable registered social landlords to develop the homes we need. But we also need to ensure our existing homes are both affordable and sustainable. It is therefore disappointing that the decarbonisation funding has only seen a inflationary rise in the budget. Both these policy areas need sufficient funding if we are to meet their overall aims of providing safe, sustainable and affordable homes in Wales.
“We need to take a whole system strategic approach to housing in Wales. To do this housing should be a foundation mission of government. That is why in our Manifesto ‘A plan for housing in Wales’ CIH Cymru calls for the next government to enshrine the right of adequate housing into Welsh legislation. We must be ambitious and deliver the legislation needed, using it as the driver and mechanism through which we can ensure everyone in Wales can access a safe, suitable, sustainable and affordable home ensuring housing is a foundation mission of government now and in the future.”
The full written statement regarding the Welsh draft budget can be read here.
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