Part of the debate – in the Senedd at 5:43 pm on 13 December 2017.
I move on to the subject at issue. The method of providing low-cost, affordable housing is one of the great challenges that face this Government. Certainly, modular housing can be a useful tool in increasing the housing supply in Wales, and brownfield sites are appropriate for housing developments.
But, a word of warning about some aspects of this: historically, modular housing has been seen as poor-quality housing, with restrictive value in terms of resale. This, therefore, can create problems for first-time buyers with low deposits, and problems of having access to funding. The industry is trying to change that perception, but it shows that we need to give full consideration to how we help people to fund the purchase of such homes. There is also concern about the longevity of this kind of housing and, once again, we have to ensure that this has consideration in the funding arrangements.
Secondly, we need to be careful about these housing developments and be careful that not only one kind of house will be built—a house that would be appropriate for only some residents. Mixed communities, where families with variable incomes live together, offer better social outcomes. There is a lot of evidence for that. We need to think about that as we plan new housing estates, as well as the design of those estates. In addition to that, public services, including active travel requirements, must be part of any development, but that’s not what happens very often, and I’m aware of one housing development that is next to a school, and yet that school is already full. So, there is a challenge facing families moving there to live.
Now, modular housing can be part of the jigsaw that will meet the demand for housing, but we must also cover other parts of the jigsaw: to start with, eco-housing, although I’m not sure if a party that denies climate change would share our enthusiasm in Plaid Cymru for eco-homes. Clearly, eco-friendly homes with low energy bills do fit into the category of affordable homes, and also fit into the category of high-quality housing as well as contributing to reducing the carbon footprint. Secondly, we need additional care homes in order to meet social care requirements. There aren’t enough of these homes built, and they are essential to assist those people who have care needs and wish to live independently.
And, finally, we need to recognise what ‘affordable’ truly means and to acknowledge that affordability relates to income. Clearly, instability in terms of working arrangements, as well as low incomes, makes it difficult for households to put funding to one side to purchase a home. What is affordable in one area certainly is very different to what’s affordable in another. I have a member of my own family who lives in Abersoch, where an affordable home is way beyond what would constitute an affordable home in an area of the Nantlle valley or Arfon, and is beyond reach and can’t be described as affordable, if truth be told. The main problem with affordability is the fact that the percentage of young people earning an average national income has reduced, and there won’t be much increase in real-terms salaries, whilst, at the same time, a higher proportion of salaries go towards paying rent.
This leads to my final warning: if we do want to see more modular homes built, we must ensure that they won’t be purchased by buy-to-let landlords. That can also create numerous problems. So, briefly, yes, there is room for this kind of housing, but only as part of a comprehensive package of different kinds of affordable homes.