Policy update

Policy developments in other parts of the UK

ENGLAND

New towns sites identified

The UK Government welcomed an independent report recommending 12 locations for a new generation of potential new towns.

Ministers have committed to starting work on at least three of them within this parliament and to make as much progress as possible on the others.

The New Towns Taskforce recommended a mixture of large-scale communities including urban extensions, urban regeneration and standalone greenfield sites should be built.

It said each new town should have at least 10,000 homes with an ambition for a minimum of 40 per cent affordable housing, half of which will be for social rent.

In its initial response, the government welcomed all 12 recommended locations and the taskforce’s wider recommendations on delivery and implementation.

The government response said that at this stage three sites at Tempsford in Bedfordshire, Crews Hill in Enfield and Leeds South Bank look most promising.

Reed takes over from Rayner

New housing secretary Steve Reed pledged to ‘build, baby, build’ in pursuit of the government’s manifesto target of 1.5 million new homes in this parliament.

The former environment secretary was appointed in the reshuffle that followed the resignation of housing secretary and deputy prime minister Angela Rayner over her tax affairs.

She had secured £39 billion in the spending review for a ten-year Social and Affordable Homes Programme and repeatedly promised ‘the biggest boost to social and affordable housing in a generation’.

SCOTLAND

Bill will cap rent increases

New legislation to transform homelessness prevention and improve standards in rented housing was passed by the Scottish Parliament.

The Housing (Scotland) Bill will:

Place a duty on certain public bodies to prevent people from losing their homes by asking about their housing situation and taking action
Broaden ministers’ powers to implement ‘Awaab’s Law’ to tackle health hazards
Give ministers the power to implement a system of long-term rent controls, keeping rent affordable for tenants.

The Bill will enable ministers to designate areas where rent increases in the private rented sector can be capped at Consumer Price Inflation plus 1 per cent up to a limit of 6 per cent .

Mid-market rentals, build to rent developments and student accommodation look set to be exempt from rent controls. However, campaigners called the exemptions ‘disastrous’ and accused landlord lobbyists of working to water down the rent controls and make them ‘functionally useless’.

Minister sets out emergency plan

Housing secretary Màiri McAllan pledged to put an end to children living in temporary accommodation, support vulnerable groups and boost investment in a Housing Emergency Action Plan.

The plan includes:

A new commitment to invest up to £4.9 billion over the next four years, delivering around 36,000 affordable homes by 2029-30.
Doubling investment in acquisitions this year to £80 million, which will help take between 600-800 children out of temporary accommodation.
Implement Awaab’s Law from March 2026, starting with damp and mould.

NORTHERN IRELAND

System ‘not meeting basic needs’

Fundamental housing challenges in Northern Ireland are deepening despite progress on some fronts, warned housing professionals after the publication of new statistics.

The Northern Ireland Housing Statistics 2024–25 bulletin revealed that a 4 per cent increase in social housing waiting lists and 6 per cent rise in households experiencing housing stress.

More positively, homeless acceptances fell 6 per cent and total of 1,504 new social homes were started in 2024/25, meeting the annual target but falling short of the 2,200 needed to meet demand.

Justin Cartwright, national director of CIH Northern Ireland, said: ‘The significant and sustained increase in the social housing waiting list and housing stress is a moral responsibility we cannot ignore. It is a sign that our current system is not meeting the basic needs of a growing number of people.’

WELSH GOVERNMENT

Ruling goes landlords’ way in rents case

The High Court ruled in favour of housing associations in a case with millions of pounds in rental payments potentially at stake.

The judgment came in the second stage of a test case brought in the aftermath of implementation of the Renting Homes (Wales) Act. This concerned regulations introduced in 2017 that introduced a requirement for landlords to provide electrical conditions reports (ECRs) to contract holders (tenants) by mid-December 2023.

In a judgment following the first stage of the case in November 2024, the High Court ruled that failure to give the reports to their tenants (as opposed to have them available) meant the properties were unfit for human habitation and that contract holders were ‘not required to pay rent’. Around £60 million in rent was said to be at stake across five housing associations.

The second case involved counter-claims to the original case, with landlords and tenants as both claimants and defendants and the Welsh Government intervening. The counter-claims included the vital question of whether tenants who had already paid their rent could reclaim it. This turned on whether the rent was paid because of a mistake of law.

The High Court heard evidence that an earlier version of the regulations only required associations to have an ECR but the final version said they must ensure that the contract holder is given a copy.

In a judgment last week the judges said that: ‘What is in retrospect unfortunate is that there was no flagging up of the change in wording from the consultation regulations of 2017 upon which much time and attention had previously been focussed by landlords like the claimants. The claimants did not blame the Welsh Government. They acknowledged, in their evidence, that they made a mistake because of a misunderstanding for which they took the whole responsibility. But it was in our judgment an understandable mistake. It was picked up very swiftly and, once picked up, corrected immediately and without any prompting from any defendant.’

The court found that none of the rent counter-claimed was paid as a result of a mistake of law. This meant that all the other counter-claims failed, including whether the landlords were ‘unjustly enriched’ as a result of the mistake and whether their human rights were breached.

The ruling concludes: ‘For these reasons, primarily because the mistake in this case was not causative of the defendants’ payment of rent when it was not required to be paid, but also because it is not unjust for the claimants to retain such rent, and also because we should not grant restitution when the contract subsists and no damage has been sustained even assuming a breach of contract, the counterclaims of all three defendants fail and are dismissed.’

An appeal in the first case was still outstanding as WHQ went to press and was due to be heard early next year but there was speculation that it could be withdrawn.

A Welsh Government spokesperson said: ‘We welcome the reassurance and clarity for both contract-holders and landlords provided by the Court’s judgements.

‘As there is currently an ongoing appeal in relation to this case, it would not be appropriate for the Welsh Government to comment further at this stage.’

A Community Housing Cymru spokesperson said: ‘We are grateful to the High Court for providing important clarification on these issues, and all parties involved in bringing and exploring this test case.

‘For reassurance, however, housing association homes were and continue to be safe to live in – this was a point of legal technicality. Housing associations take matters of safety and fitness very seriously, and abide by the high standards set by Welsh Government and the regulator.’

Minister sets out ten-year rent settlement

Housing secretary Jayne Bryant has approved a ten-year rent standard for social that she said would provide ‘immediate certainty and stability for social landlords and tenants across Wales’.

The Welsh Government Rent and Service Charge Standard 2026-2036 will see social housing rents rise by Consumer Price Inflation (CPI) + 1 per cent. This is the maximum overall increase allowable in any one year where the CPI rate in September falls between 0 per cent and 3 per cent.

Where September CPI falls between 3 per cent and 5 per cent the maximum overall increase will be CPI+0 .5 per cent but if September CPI exceeds 5 per cent Welsh Government ministers will determine the appropriate uplift to be applied for that year.

CPI rose to 3.8 per cent in August and the September figure was due to be published as WHQ went to press.

In addition, individual tenants’ rents can be reduced, frozen or increased by ‘up to an additional £2.55 per week’ on condition that the overall increase in rental income is no greater than the national formula.

Service charge increases are not included in the standard on the grounds that they are governed by a range of local and property-specific factors. But they will be expected to be ‘reasonable and affordable’ and landlords will be required to review them annually to ensure that they provide value for money for tenants and are affordable.

However, Welsh Government has not yet made a decision on the issue of rent convergence.

Jayne Bryant explained in a written statement: ‘Affordability remains at the heart of our social rent policy and I have committed to embedding this further by developing an affordability framework, which will bring greater clarity and consistency to rent setting practice across Wales.’

‘I have listened to respondents and acknowledge the potential for rent convergence to generate additional rental income and promote greater consistency across the sector. However, convergence is inherently complex, with significant implications for affordability. That is why we will undertake further analysis alongside our work on affordability to inform consideration of whether, when, and how convergence could be pursued within the wider housing and fiscal landscape.’

As part of the settlement, social landlords have agreed to continue their commitment to no evictions due to financial hardship and to provide targeted support to tenants experiencing financial hardship as well as to maximise the use of existing social housing stock and build on existing engagement with tenants.

Cosmeston to be ‘UK’s largest’ net zero housing development

The Welsh Government has agreed a deal with Barratt Redrow to deliver what it says will be the UK’s largest net zero carbon housing development.

The Cosmeston Farm site in the Vale of Glamorgan will see the delivery of 576 new homes that will achieve net zero carbon through innovative design and technologies.

Net zero housing developments aim to create homes that produce as much energy as they consume, significantly reducing carbon emissions and promoting sustainability.

Cardiff University has been appointed to independently assess and verify data that monitors zero carbon performance of the homes.

Half of the homes will be affordable, with 219 set to be available for social rent. The development will also include a new primary school, open space and an active travel route, creating a comprehensive sustainable community.

On a recent visit to the site, housing secretary Jayne Bryant, said: ‘This landmark development sets a new standard for sustainable housing not only in Wales but across the UK and beyond.

‘This isn’t just about building homes – it’s about creating thriving communities and tackling the climate emergency head-on. Our net zero policy is driving real investment and real change in how we build the homes Wales desperately needs.

‘The agreement with Barratt Redrow represents a significant step-change that shows what’s possible when we put people and our planet first, and I’m particularly pleased with their commitment to delivering training and apprenticeships, helping to build skills and careers for the next generation.’

David Thomas, chief executive of Barratt Redrow, said: ‘It will be an exemplar development and a great place to live, with fantastic community facilities, a strong commitment to affordable housing and cutting-edge sustainability credentials. Every highly energy efficient home will be heated by a ground source heat pump and powered by photovoltaic panels and batteries, cutting carbon and bills for future residents.’

Call to close gap on renters’ rights

New legislation at Westminster is creating an ‘entirely unacceptable’ gap between Wales and England on renters’ rights, says shadow housing secretary Siân Gwenllian.

She was speaking at first minister’s questions after Labour MS Julie Morgan raised rights for renters to keep pets, which forms part of the Renters’ Rights Bill in England.

The Plaid Cymru MS said tenants in Wales were ‘going to be worse off before too very long’ on the right to keep pets and more broadly.

She said: ‘I am calling on the Government to announce an urgent action plan to demonstrate in detail how you intend to close the gaps in safeguards for Welsh renters, the gaps that are now being created as a result of this new legislation in England.’

In response, first minister Eluned Morgan hinted at action to come: ‘Well, just to be clear, I don’t want to be in a situation where the rights are so different in England as compared to Wales, so what we will be doing is ensuring that we will be looking at those gaps and then ensuring that we do fill those gaps if needed.’

Housing secretary faces ‘tough questions’ on building safety

Remediation work has started or been completed on less than half of the 459 unsafe buildings in Wales.

The September update from the Welsh Building Safety Programme shows works have been completed on 83 buildings (18 per cent) and started on 119 (26 per cent). Of the remaining buildings, works are at the planning stage on 216 (47 per cent) and works are not required or remediation needs are yet to be identified on 41 (9 per cent).

There has been slow progress on buildings that are being remediated under the contract signed by larger developers with Welsh Government. Works have been completed on just six out of 163 buildings and started on a further 48.

Housing secretary Jayne Bryant met members of the Welsh Cladiators campaign group in July, with a further meeting planned for October 16.

She said: ‘They asked me some tough questions and made it clear that they will continue to demand action and speed with the remediation process in Wales. I am grateful for that passion and commitment, and I will continue to work tirelessly to find the answers and drive the pace of progress within the programme.’

Small fall in use of temporary accommodation

The number of homeless households in temporary accommodation fell for the first time since 2015, according to homelessness statistics for 2024/25.

As at the end of March 2025, there were 6,285 households in temporary accommodation, down 3 per cent on March 2024. The total had increased every year since 2015 and risen sharply since the pandemic in 2020.

However, despite this year’s small decline, the numbers are still 69 per cent higher than in 2020/21.

Monthly statistics show that a total of 10,944 people were housed in temporary accommodation as at the end of May, continuing a gentle decline seen since the beginning of 2024. Of those, 2,638 were dependent children under 16, a decrease of 12 per cent on May 2024 and 21 per cent on May 2023.

Shelter Cymru chief executive Ruth Power said: ‘With the same story being told by the statistics every year it’s clear that radical change is needed to turn the tide. And with potentially transformative homelessness legislation before the Senedd and an election on the horizon we believe that now is the moment for all political parties in Wales to commit to ending the housing emergency once and for all.’

WALES

Gwynedd loses court case on second homes

A council has lost a legal challenge after becoming the first in Wales to require owners to get planning permission to convert primary residences into second homes and holiday lets.

The Welsh Government gave councils new powers to control second homes in their area in 2022. Amendments to planning regulations introduced new planning use classes for main homes, second homes and short-term holiday lets.

Cyngor Gwynedd was the first to introduce an Article 4 direction in September 2024. Around 11 per cent of homes in the county are second homes or holiday lets, a rate four times higher than in Wales as a whole.

However, some home owners complained that the direction reduced the value of their properties. They lost their original application for a judicial review but appealed.

At the end of September a High Court judge granted the application on the grounds that cabinet members considering the direction were ‘materially misled’ by a report from officers that did not distinguish between material and non-material changes of use.

Councillor Craig ab Iago, cabinet member for the environment, said: ‘Research carried out before introducing the Article 4 Direction showed that 65 per cent of Gwynedd households were being priced out of the housing market, with the problem even more prominent in communities where there is a high proportion of holiday homes.

‘We are extremely disappointed with the judgement and will be proceeding to start the appeal process to defend our decision of introducing the Article 4 Direction in Gwynedd.’

Cardiff and the Vale sign partnership agreement

Cardiff Council and Vale of Glamorgan Council have promised a new era for housing delivery after signing a partnership agreement with Lovell Partnerships to deliver a transformative housing scheme across the region.

The say the collaboration marks a significant milestone in the local authorities’ commitment to providing high-quality, affordable, and market-sale homes for communities in their areas.

The partnership charter sets the partnership’s vision and objectives to deliver affordable homes and regenerate communities across Cardiff and the Vale, with around 2,500 homes including around 1,600 new council homes across 25 sites.

Leader of Cardiff Council Cllr Huw Thomas said: ‘This partnership marks a new era for housing delivery in Cardiff and the Vale. By working together with our colleagues in the Vale of Glamorgan and Lovell, we are demonstrating our shared commitment to tackling housing need and building thriving, inclusive communities.’

Cllr Lis Burnett, leader of the Vale of Glamorgan Council, said: ‘This is an exciting partnership arrangement that will see a large number of houses delivered across Cardiff and the Vale. They will be energy efficient and built sustainably, which aligns perfectly with the Vale of Glamorgan Council’s Project Zero Commitment to become carbon neutral by 2030.

Valleys to Coast launches biggest ever development

A disused factory site in Maesteg will be transformed into Valleys to Coast’s largest housing development to date, delivering nearly 200 new homes and breathing new life into a part of the town that has stood empty for more than a decade.

The housing association is delivering the £41.8 million scheme with housebuilder Avant Homes in a deal supported by law firm Hugh James.

The former Revlon factory site was made ready for development by Bridgend County Borough Council and Cardiff Capital Region, which funded £3.5 million of site remediation works.

The scheme will feature a total of 193 homes, comprising a mix of affordable homes for social rent, low-cost home ownership properties, open market sale homes, and affordable rent homes. Work will begin in early 2026, with the first homes expected to be handed over by late 2026 and full completion targeted for 2030.

Group chief executive Jo Oak said: ‘This is a landmark moment for Valleys to Coast and Maesteg. Ewenny Road is not just our biggest development to date; it’s a bold step in helping families, couples, and individuals most in need of a home to put down roots here in Bridgend. It’s part of our ongoing commitment to tackling the housing need in our communities, creating high-quality, affordable homes that give people the stability and security they deserve.’

James Griffiths, Valleys to Coast’s managing director of development and regeneration, said: ‘For more than 12 years, this site has stood empty, but soon it will be home to a thriving community, offering a mix of social rent, affordable ownership, and open market sale properties. This means we can meet a range of needs while creating a vibrant, balanced neighbourhood where people can grow, work, and belong.’

Affordability concerns rise for tenants

A nationwide survey for all social housing tenants has revealed the growing strain on tenants across Wales, with many reporting they are being pushed into impossible financial choices.

The latest Tenant Pulse Survey from TPAS Cymru shows that only 42 per cent of tenants feel their rent is affordable in 2025, a steep fall from 62 per cent last year and 78 per cent in 2023.

Tenants describe being forced to choose between ‘heating and eating’, cutting back on essentials or falling into debt.

The survey also revealed that:

Tenants under 30 are being hit hardest, with almost two-thirds saying their rent is unaffordable.
More than half of tenants don’t know how their rent is spent, but want answers on how it is.
93 per cent of tenants call on the Welsh Government to define what ‘affordable rent’ really means, and nearly half have not seen information about financial support from their landlord, despite a sector commitment.
Almost 1 in 3 tenants say their service charges are unaffordable, and many don’t understand how they’re calculated.

66 per cent of tenants back the ministerial cap, which limits sharp rent rises when inflation is high.

David Wilton, chief executive of TPAS Cymru, said: ‘These findings are sobering. Behind every statistic is a tenant worrying about how to make ends meet. Over 550 tenants shared their experiences in this year’s survey, our most diverse yet, showing clearly that tenants want fairness, transparency, and a system that reflects real life experiences – not just formulas.’

A groundbreaking ceremony has signalled the start of progressive building works at ClwydAlyn’s redevelopment of a historic Gwynedd community, Penrhos Polish Village near Pwllheli.

In the heart of Gwynedd, the unique site, former home to displaced Polish soldiers, airmen, naval personnel and civilians after the Second World War and previously a RAF base, hosted a ceremony in July to signify the start of an eagerly awaited redevelopment.

Representatives from Cyngor Gwynedd, honorary consul of the Republic of Poland, ClwydAlyn, Williams Homes, Betsi Cadwaladr University Health Board and a selection of current and former residents, gathered to witness the ceremony.

Caerphilly brings empty homes back into use

More than 400 private long-term empty homes have been transformed back into use in since 2021 thanks to Caerphilly County Borough Council’s empty property team.

The team has worked with landlords, homeowners, and developers to tackle problem properties; boosting housing supply, improving neighbourhoods, and removing eyesores from local communities.

One of the team’s biggest success stories is a Nelson property left empty for over a decade. Once plagued by fly-tipping, pests, and constant complaints, it’s now a fully renovated rental home.

After persistent support from the team, and the looming introduction of an empty property council tax premium, the owner agreed to sell through auction. A local developer completed the transformation, returning it to the rental market and restoring a once-derelict home back to the community.

Cllr Shayne Cook, Caerphilly Council’s cabinet member for housing, said: ’Empty properties are a blight on our communities and represent a wasted resource at a time when we face a national housing crisis. By bringing over 400 homes back into use, we’re not only tackling problem properties but also creating much-needed housing and breathing new life into neighbourhoods across the Caerphilly borough.’

PUBLICATIONS 10 TO LOOK OUT FOR

1) The impact of temporary accommodation on children and their families

Bevan Foundation, September 2025

www.bevanfoundation.org/resources/temporary-accommodation-children/

2) Rent setting practices of social landlords in Wales

Welsh Government, September 2025

www.gov.wales/rent-setting-practices-social-landlords-wales

3) Back to the future: The next generation of new towns

Shelter, September 2025

england.shelter.org.uk/professional_resources/policy_and_research/policy_library/back_to_the_future_the_next_generation_of_new_towns

4) Homes, support, prevention – our foundations for ending homelessness

The All-Party Parliamentary Group for Ending Homelessness/Crisis, September 2025