A new report from the Senedd’s Local Government and Housing Committee has called on the Welsh Government to significantly increase the construction of social housing to tackle Wales’ growing housing crisis. The Committee recommends creating a national development corporation to speed up housebuilding and meet the demand for affordable homes, as the current approach by local councils and housing associations is unlikely to deliver the volume required.
Bold targets for social housing growth
The Committee’s inquiry emphasises the need for 60,000 additional social homes, with the aim of raising the percentage of social housing in Wales from the current 16% to 20% of the country’s total housing stock. The Committee also proposes that the Development Bank of Wales should directly fund social housing projects, offering more favourable financial terms than those currently provided by private investors.
Evidence presented to the Committee pointed to successful models in countries like Denmark and Canada, where national development corporations manage large-scale housebuilding projects. Such a body in Wales could acquire land and oversee housing developments to address the shortage faster and more efficiently.
Chair of the Committee, John Griffiths MS, stressed the urgency:
“If we want to get to grips with the housing crisis then we have to build more social housing urgently—before the waiting lists get even longer.”
The Welsh Government has committed to building 20,000 new homes by 2026, but the Committee expressed concerns over whether this target will be met and whether it is sufficient to address the scale of the problem.
Long waiting lists for one-bedroom homes
The housing shortage has particularly impacted individuals in need of one-bedroom properties, which are in short supply as the current housing stock prioritises larger family homes. Organisations like the Planning Officers Society Wales and the Chartered Institute for Housing Cymru reported “massive demand” for smaller properties.
The report highlighted the story of Garry Roper, a Cardiff resident who waited 21 months for a one-bedroom home. During this time, he lived in a YMCA hostel, which made it difficult to spend time with his son.
“The main issue I had was that it was difficult to see my son and spend time with him,” Roper explained. “Living in a homelessness hostel was quite stressful at times. I’m really pleased to have my own property now—it’s a lot easier, and I can see my son more regularly.”
The Committee has urged the Welsh Government to prioritise the construction of one-bedroom homes and explore innovative solutions such as repurposing vacant land, remodelling larger homes, and bringing unused flats above shops back into circulation.
Ambitious plans, challenging road ahead
Former Housing Secretary Julie James MS previously admitted that the Welsh Government is “hanging on” to its target of 20,000 new homes “by the skin of our teeth.” The Committee’s report underscores the importance of meeting—and exceeding—this goal, with Griffiths calling for a broader mix of housing options:
“A crucial part of delivering this is ensuring that there is a suitable mix of homes being built, which must include more one-bedroom properties. The Welsh Government needs to look at all the options at its disposal to tackle this problem.”
The Committee’s recommendations include empowering the Development Bank of Wales to directly finance social housing projects, addressing funding gaps and supporting faster progress.
As housing demand continues to outstrip supply, the Welsh Government faces mounting pressure to rethink its strategy and implement bold changes.
