Policy update

POLICY DEVELOPMENTS IN OTHER PARTS OF THE UK

UK

Reeves confirms LHA freeze and increases NICs

Chancellor Rachel Reeves confirmed plans to re-impose a freeze on Local Housing Allowance (LHA) rates in her November Budget.

The decision came despite official data showing private rents rising at a record rate in the previous 12 months.

LHA rates are meant to be linked to the cheapest 30 per cent of local rents (or 50 per cent up to 2011) but the Treasury has repeatedly frozen them to save money. Rates were restored to the 30^th percentile in April 2024 but a renewed freeze was baked into spending plans inherited by the Labour government.

Private rents rose by 9.1 per cent in across the UK in the year to November, according to the Office for National Statistics, up from 8.7 per cent in the 12 months to October.

Average rents increased to £1,362 (9.3 per cent) in England, £772 (8.0 per cent) in Wales and £980 (6.5 per cent) in Scotland.

The chancellor also rejected calls to increase or scrap the benefit cap or to abolish the bedroom tax or two-child limit.

However, her main revenue-raising measure could also have a significant impact on housing. Extra funding has been promised to protect public services from the increase in employers’ national insurance contributions but so far not to services in homelessness, care and housing support that are commissioned by the public sector.

ENGLAND

Double Budget boost for social landlords

The Westminster Budget brought some relief for housing associations and local authorities even if long-term solutions will have to wait until the spending review in the Spring.

Chancellor Rachel Reeves announced an extra £500 million for the Affordable Homes Programme but that will only partially make up rising costs that have squeezed output of new homes.

To put that in context, the Budget also included £3 billion in additional guarantees for the private sector to go to small housebuilders and build-to-rent developers.

More significant perhaps for social landlord finance was a consultation on a new long-term settlement that could see social rents rise by CPI inflation plus 1 per cent a year for the next five years or possibly longer.

However, the government appeared to have ruled out the reintroduction of rent convergence, which landlords say would unlock further investment. And landlords will remember that previous ‘long-term’ settlements were abandoned when circumstances changed.

Local authorities got some relief with long-promised reductions in right to buy discounts and permission to keep 100 per cent of sales receipts.

However, an additional £233 million to tackle homelessness and rough sleeping will only slightly ease soaring costs of temporary accommodation that have pushed some councils to the brink of bankruptcy. The chancellor did not act on calls to lift a cap on temporary accommodation funding.

SCOTLAND

Government restores affordable homes funding

The Scottish Government reversed its decision to cut almost £200 million from the Affordable Housing Supply Programme.

Announcing the Draft Budget in December, finance minister Shona Robison allocated £768 million to the AHSP for 2025/26, an increase of 38 per cent on this year’s £556 million.

That reverses the cut imposed by the SNP government under previous first minister Humza Yousaf in February 2024 but it is only 2 per cent higher than the budget for 2023/24.

The decision followed a boost to the Scottish Government’s capital programme following the UK Budget in November.

Official figures published later in December showed that affordable housing starts falling to their lowest level since 2013.

Shona Robison said: ‘We’re going to ramp up action on housing, investing £768 million in affordable homes. That enables over 8,000 new properties for social rent, mid-market rent and low-cost homeownership to be built or acquired this coming year, and it returns spending to a higher level than it was two years ago.’

NORTHERN IRELAND

Social housing gets ‘significant’ investment

The housing sector welcomed an extra £100 million for social housing announced by finance minister Dr Caoimhe Archibald in the Executive’s draft budget for 2025/26.

Capital funding for the Department for Communities will increase by £270 million overall under plans out to consultation and there will also be extra investment in wastewater infrastructure to boost overall housing supply.

Justin Cartwright, national director at Chartered Institute of Housing (CIH) Northern Ireland: ‘This significant investment provides a crucial foundation for increased new social housing provision, addressing the urgent need for affordable homes across Northern Ireland.

‘While challenges remain, this funding presents a valuable opportunity to build upon the progress made this year. The increased allocation compared to the initial 2024/25 allocation demonstrates a commitment to tackling the housing crisis.’

WELSH GOVERNMENT

Draft Budget increases funding for housing

Extra funding for new social housing and housing support both featured in the Welsh Government’s Draft Budget for 2025/26.

Alongside boosts for health and social care, transport and education, finance secretary Mark Drakeford announced £81 million more in capital funding to build more homes for social rent.

Budget documents confirmed this would be for the Social Housing Grant and Transitional Accommodation Capital Programmes ‘which will deliver more homes for social rent supporting our work to end homelessness and ensure everyone in Wales has a decent, secure place to call home’.

In addition, there is a further £26.25 million of financial transactions capital to continue to support loans to housing associations and a further £5.5 million of capital funding in the Independent Living Programme which supports housing adaptations.

On Housing Support Grant, Cymorth Cymru said that last year’s £13 million uplift has been baselined, and a further increase of £21 million has been awarded for 2025/26, which means HSG should total £203 million next year.

Senedd committee calls for major boost for social housing

An influential Senedd committee called for greater investment in social housing and the creation of a national development corporation to speed up housebuilding by buying land and planning housing across Wales.

A report from the Local Government and Housing Committee published in November said local authorities and housing associations would struggle to build the number of homes required and recommended a new development corporation that could help them work on much larger sites.

Evidence to the committee showed that countries such as Denmark and Canada use development corporations and it said that Wales should aim to learn from these successful examples.

The committee is calling on the Welsh Government to increase the amount spent on social housing to build 60,000 more homes, with the ultimate aim that 20 per cent of Wales’s housing stock falls into this category, up from 16 per cent today.

The report also said that the Development Bank of Wales, a body funded by Welsh Government that finances businesses, should become a direct funder of social housing developments, potentially offering more favourable terms to those currently offered to social landlords by private investors.

The committee heard that social housing has long waiting lists for people needing different types of accommodation and that the type of properties available are often not the sort needed.

Many are two- or three-bedroom homes, which are prioritised for families, meaning that people needing one-bedroom properties are stuck on waiting lists for longer.

The committee is urging the Welsh Government to work with local authorities and housing associations to make sure that enough one-bedroom homes are being built to reduce the pressure on waiting lists.

The committee said it was concerned that Welsh Government’s target of 20,000 new social homes by 2026 will not be met and, even if it is, will not be enough to meet demand.

Minister hails ‘significant step forward’ for affordable housing

Housing secretary Jayne Bryant hailed the work of a new collaboration of social landlords ahead of its official launch in January.

Tai ar y Cyd, a collaboration of 23 Welsh social landlords, has produced a groundbreaking pattern book of standardised designs that it says will help make building homes in Wales more sustainable, energy efficient and cost effective.

The pattern book includes layouts for 15 house types and 18 variants ranging from one-bedroom flats and four-bedroom houses to fully wheelchair accessible bungalows and flats.

The benefits of the new pattern book are said to include higher quality homes, economic regeneration, faster construction, use of low-carbon materials, cost certainty, reduced waste, and less disruption to communities.

The pattern book and design guide were officially unveiled in an event at University of Wales Trinity Saint David, Swansea campus.

Jayne Bryant said: ‘I am delighted that Welsh Government has played its part in supporting this collaboration, with £300,000 of funding contributed alongside the £580,000 contributed by consortium members.

‘I look forward to seeing the impact the pattern book has over the coming years in supporting our ambitions to increase the number of affordable homes.’

Help to Buy Wales extended

Help to Buy Wales will be extended by a further 18 months to September 2026, said housing secretary Jayne Bryant in a statement before Christmas.

The scheme has provided equity loans to 14,000 households to buy a new home since its launch in January 2014 had been due to end in April 2025. The equivalent in England closed in March 2023.

The minister said: ‘In announcing the extension today, I want to provide assurance to people hoping to buy a home that the scheme will continue. I also want to provide certainty to the 50 developers and SMEs registered with Help to Buy Wales.’

Consultations

Open consultations of interest to WHQ readers include:

Permitted insurance fees for landlords, freeholders and property managing agents – responses by 24 February

WALES

Associations complete merger

RHA Wales and Coastal Housing Group completed their merger to become Beacon Cymru Group on January 2.

The pair said they were creating a 10,000-home organisation for the future that would constantly raise the bar to deliver improved services and homes for residents.

‘We are focused on growth and investment in existing homes and services and will create a more resilient organisation with a wider geographical reach,’ they said.

Key designate appointments for the new group had been revealed last year, with Debbie Green as group chief executive and Luke Takeuchi as deputy chief executive and Pete Hughes as chair and Patrick Hoare as vice-chair.

And the winners are…

Winners of the 2024 Welsh Housing Awards were announced at a special ceremony in Cardiff in December.

Organised by the Chartered Institute of Housing (CIH), the awards recognise the creativity, passion and innovation of housing organisations and individuals across the sector. This year’s awards received over 54 nominations across 17 categories, including housing team of the year, excellence in housing innovation, and sustainability in housing.

All shortlisted entries for the Welsh Housing Awards have also been included in the 2024 Good Practice Compendium, a core learning document full of inspiration, ideas, and innovation to help everyone across the sector create a future where everyone has a place to call home.

The winners announced at the ceremony sponsored by Aico were:

Housing team of the year – sponsored by Monmouthshire Housing

Critical incident response team – Taff Housing

Young achiever in housing – sponsored by Tai Tarian

Jazmin Pugh – Barcud Cyf

Campaign of the year

Paul Price and Laura Morris – Llanw Property Services

Excellence in tenant scrutiny

Scrutinising the flexi-way – Hafod

Excellence in customer service – sponsored by Llanw

Financial inclusion – Monmouthshire Housing Association

Excellence in health and wellbeing

MAGPIE – Trivallis

Excellence in housing innovation

DAHA accreditation for domestic abuse cases – Trivallis

Working in partnership – sponsored by Lovell

Innovative collaboration: A first of its kind partnership to tackle decarbonisation in homes – Adra in partnership with Busnes@LlandrilloMenai, Bangor University

Excellence in preventing homelessness – sponsored by Pobl

Tai Ffres – United Welsh Group in partnership with Llamau

Excellence in championing equality and diversity – sponsored by Tai Wales and West Housing

Equality, Diversity and Inclusion Group – Melin Homes

Sustainability in housing – sponsored by Blake Morgan

Leading the way to a greener future – Adra

Supporting communities – sponsored by Newport City Homes

Fit and fed – Merthyr Tydfil Housing Association

Developing high quality homes

Llysfaen – Merthyr Tydfil Housing Association in partnership with Merthyr Tydfil County Borough Council

Community-focussed contractor

#buildSHED @ Big Shed – Willis Construction Limited in partnership with RHA Wales

Positive placemaking

Pill Unity Gardens and Allotments – Newport City Homes

Supporting independent living

Tai Ffres – United Welsh in partnership with Llamau

Excellence in professionalism, learning and development

Bron Ambition – Aspiring Manager Programme – Bron Afon Community Housing

Homes for young people in historic Cardiff building

A Grade II listed building in the heart of Cardiff Bay has been transformed into apartments to provide much-needed homes for young people.

St Line House, in historic Mount Stuart Square, has been converted into 17 apartments with office space. The apartments are being let by Tai Ffres, a youth housing service for 16–25-year-olds delivered by United Welsh and Llamau.

United Welsh worked with Savills and Hugh James to acquire the building, which is thought to date back to 1900. St Line House was later renovated by Willow Property Group to create five two-bedroom, nine one-bedroom and three studio apartments.

Rent costs for an apartment at St Line House are among the lowest in Cardiff.

Amanda Oliver, project manager for Tai Ffres said: ‘Tai Ffres seeks to move beyond a narrow focus of providing young people with just a roof over their head, to providing a more rounded approach of housing and support with finances, skills development and community connections, if residents want it.’

Tai Ffres costs less to the public purse than temporary homelessness accommodation. The service benefits from low interest capital loan provision from Welsh Government, which helps to keep service costs low, while more homes for young people are acquired for redevelopment.

Tai Ffres was established with funding support from Welsh Government’s Innovative Housing Fund, and continues to receive support from Welsh Government, the End Youth Homelessness Cymru coalition and Cardiff Council.

Trivallis has completed work converting the former Miskin School into 11 affordable homes for the community.

The housing association, based in Rhondda Cynon Taf, partnered with Cartrefi Ltd to carry out the redevelopment and the historic building began to welcome tenants before Christmas.

This project was made possible thanks to Social Housing Grant, supported by Rhondda Cynon Taf County Borough Council and the Welsh Government.

Trivallis purchased the building in November 2019 and carefully designed the redevelopment to provide high-quality homes while preserving the building’s unique character.

This redevelopment follows Trivallis’ successful work in Llantrisant, where a derelict school was turned into 18 new homes.