A new report from the Home Builders Federation reveals that increasing Welsh housing supply this Senedd term could unlock huge opportunities for local economies and public services
The report, titled ‘The Social and Economic Impact of Home Building in Wales’, comes as the newly elected government commits to ensuring that everybody in Wales should have “the right to a safe home at a cost they can afford.”
However, whilst the Welsh Government has set a target to deliver 20,000 new social homes by 2030, there is a lack of focus on delivering private housing, despite Wales requiring an additional 23,000 market homes during this Senedd term to meet housing need.
Neil Jefferson, chief executive of the Home Builders Federation, said: “The findings show that the benefits of building homes go far beyond boosting housing supply.
“Home building creates jobs, supports local businesses, delivers vital community infrastructure, generates significant tax revenues and helps provide the affordable homes that Wales needs.”
The benefits of delivering 23,000 homes by 2030
Delivering 23,000 homes for market sale by 2030 could unlock:
- Thousands of new Affordable Homes, backed by £200m of private sector investment through Section 106 agreements
- Around 3,700 school places, backed by approximately £65m invested in new and improved schools
- Investment in community facilities equivalent to around 110 multi-use games areas or 180 football pitches through £21m invested in open spaces and recreation
- Around £650m in additional tax revenues to support public services
A large portion of Welsh housing supply must be affordable
The report highlights the link between private market housing supply and affordable housing delivery.
Around one-third of all affordable homes in Wales are delivered by private home builders through Section 106 agreements, with little or no direct government subsidy.
Without sufficient market housing delivery, much of this affordable housing supply would not come forward, making the Welsh Government’s affordable housing ambitions harder to achieve.
“HBF members stand ready to help the Welsh Government achieve its housing targets by delivering high-quality, mixed-tenure developments that include a wide range of affordable homes for the communities that need them most, stated Mathew Davies, chair of HBF Wales and managing director of Davies Homes
“In doing so, the sector will also help create a strong pipeline of future talent, supported by vocational training and partnerships with further education colleges, ensuring the workforce required to sustain housing delivery in the years ahead.”
The wider effect of increasing housing supply for communities, jobs and the economy
Supporting the delivery of private homes would also support the government’s priority to boost economic productivity.
Every year, the industry supports £1.1bn of economic output and invests more than £100m in local infrastructure and community amenities through Section 106 agreements and other contributions, including new schools, open spaces, sports facilities, roads and wider community infrastructure.
Home builders also support local communities through volunteering initiatives, community projects and environmental improvements that extend beyond formal planning obligations.
The industry currently supports approximately 17,500 jobs across construction sites and the wider Welsh supply chain, while investing in the next generation of skilled workers through more than 200 apprenticeships, graduate roles and trainee positions every year.
Sam Rowlands MS for Fflint Wrecsam and former shadow housing minister, concluded: “I am pleased to support the Home Builders Federation as they launch their new report on the social and economic impact of home building in Wales.
“Housebuilding plays a vital role in supporting jobs, apprenticeships and local investment across Wales, whilst also helping to deliver the new homes that communities urgently need. It is important that we continue to look at how planning and housing policy can work more effectively to unlock further delivery.”
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