6. Statement by the Minister for Housing and Regeneration: Low Cost Home Ownership

Part of the debate – in the Senedd at 5:41 pm on 1 May 2018.

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Photo of Hefin David Hefin David Labour 5:41, 1 May 2018

I'd like to welcome the review of the affordable housing supply, and I feel that local authorities are under pressure to entice big developers with low affordable housing targets, because that's the only way you can get big developers to build. I fear that the current local development plan system works with that grain rather than against it, to the outrage of residents who want affordable housing. For example, an estate has been agreed in my constituency for 260 houses, of which 60 are affordable. That is what happens when you put tactics before strategy and you have LDPs before you have strategic development plans. I don't think the Government has been right on that.

I'd like to just read to you some evidence that was given by the chief planning officer to the policy and resources scrutiny committee in Caerphilly council regarding targets for affordable homes. He said:

'It's only a target, and if it's not viable for the developers then we have to accept a reduced figure. Developers know the targets exist but they have their own set fixed costs, including their profit margins. If the developer can't make what they expect to be a profit, and the landowner can't sell the land at a price that they feel satisfactory, then no development takes place.'

This keeps us trapped in this housing crisis and I feel that the last bit of the answer to Mike Hedges that you gave does give us hope in that small firms can start to break through and start to smash that cartel—the cartel of the big four housing developers. I'm hoping to hold a cross-party group later this year and I would like to know, Minister, if you'd be willing to attend that cross-party group and hear from small house builders there. But, also, do you agree that the dominance of the big four construction companies actually works against the provision of affordable housing?