The short debate is proposed by David Melding, Valleys housing—a heritage worth investing in. And I call on David Melding.

Thank you, Llywydd.

Silence. Silence in the Chamber, please. David Melding.

History, geography and the rapid expansion of extractive industries, especially coal, have combined to produce a unique built environment in Wales, and I'm pleased to introduce this debate this evening. I'm also pleased to allow Hefin David and Suzy Davies to have a minute of my time. 

The terraced housing of the industrial period is present in other parts of the UK, but not in the concentration found in the Glamorgan and Gwent Valleys in particular. It was the product of the rapid urbanisation that accompanied the discovery of the south Wales coalfield. South Wales was the Kuwait of coal, according to one historian, and the coalfield produced just the sort of coal that the nineteenth century required: anthracite for heating; steam coal for locomotion. These were the central parts of the industrial revolution.

In 1851, only 951 people lived in the Rhondda Valleys. By 1881, the figure was 55,000, and, by 1921, 167,000—more than Cardiganshire, Merionethshire and Montgomeryshire combined. Of course, the population growth experienced in the south Wales Valleys drew on rural migration, allowing many Welsh men and women to stay in Wales, if not in their county of birth, instead of, for instance, crossing the Atlantic. And this vast wave of economic migrants had to be housed. There developed, in response to the beautiful, even sublime, geography of the Valleys, something unique. I mean, of course, the ribbon pattern along soaring mountainsides that still today is a powerful and evocative image of Wales, matched only perhaps by the fortress castles of north Wales. 

The Deputy Presiding Officer took the Chair.

Terraced housing combined to make a unique succession of urban communities, villages almost, that contrasted sharply to nucleated urban development elsewhere. About 40 per cent of homes in Wales are terraces, and this will still amount to 28 per cent of our housing stock by 2050. This inheritance should be enthusiastically celebrated, rather than seen as an incubus or hangover from the industrial age. As the architect Andrew Sutton has written, 

'the geography of the valleys' terrace housing clinging to the hillside meant that Wales never had the same density of back-to-back slums as there were in some English cities, and so they've remained desirable places to live with strong community spirit.... Indeed, if you were starting with a blank sheet and looking at ways to build on the steep slopes of south Wales, even today you probably couldn't come up with an idea better suited than the terraced house.'

End quote. There is much more than utility in favour of traditional Valleys housing, however. According to the architect Peter Ireland, and quoted in The Guardian:

'The most sustainable thing we can do is to not build new stuff.... I often say to a client, everything is an asset until we prove it otherwise.'

While I have not found any estimates for embedded carbon in terraced houses, it has been estimated that an old flour mill in Sydney saved 21,000 tonnes of carbon dioxide by avoiding demolition to become 47 studio flats, equivalent to keeping 5,000 cars off the road for a year. The Green Building Council of Australia encourages this approach on reuse and retrofitting. It is developing a building retrofit toolkit to improve energy efficiency, resilience and sustainability. The Welsh Government could usefully calculate the embedded carbon in the pre-1919 housing stock. We also need to restore the once commonplace skills and knowledge base necessary for the correct repair and maintenance of traditional buildings, such as the Valleys terraces. 

While we inevitably think of coal when talking about Valleys housing, there is, in fact, a deeper heritage. The iron towns of the Heads of the Valleys, most notably Merthyr, set the trend for terraced housing. By the beginning of the nineteenth century, Merthyr had become the largest town in Wales, and by 1851 its population of 46,000 was twice that of Swansea and two and a half times that of Cardiff. The surviving houses of this period are every bit as important architecturally as the Royal Crescent in Bath, and I really do believe that. Chapel Row, Georgetown—you're now seeing some of these images on the montage—Coedcae Court, for example, again in Merthyr, roughly date from 1830. 

Even more remarkable is the survival of Butetown in Rhymney, again built in the early 1800s and described by John Newman in his magisterial volume, Glamorgan, in the Buildings of Wales series, as

'reminiscent of James Adam's Lowther Village, Westmoreland'.

Its simple and classic details are outstanding. 

It is apposite that, as we debate this unique heritage of Valleys housing, the Design Commission for Wales has today published a report on Merthyr, and I do encourage everyone to have a look at this. Based on the revival of Cyfarthfa castle and the estate east and west of the Taff, it sees this as an anchor project for a Valleys regional park. In time, this could become an extension of the World Heritage Site at Blaenavon. This is just the sort of vision that we need, and it would combine perfectly with the reassessment of the value of Valleys housing to the image and contemporary culture of Wales. I congratulate Geraint Talfan Davies and his team for developing this exciting project.

The Welsh Government does share much of this ambition, and the work of the Valleys taskforce is promising. Certainly, its work to improve skills could be an excellent way to enable retrofitting schemes to be expanded, and many more traditional terraced homes to become energy efficient. Likewise, helping to ensure that the south Wales metro provides excellent public transport services to our Valleys communities is another way to see their revival. 

And we should not forget that industrial activity brought similar housing to communities in north Wales. On the montage is a photo of Nant Gwrtheyrn, which many Members will know as an innovative Welsh language and heritage centre. The village was built to serve the local quarry and was eventually closed in world war two. The cottages fell into disrepair and ruin before being restored with great skill and sensitivity more recently. And it's a wonderful example of what can be done with what seemed to be hopeless and derelict terracing. 

Finally, let me finish with an eccentric example, but it also contains, I think, a warning. The Valleys have a rich heritage, and perhaps this is no better demonstrated than in the round houses of Glyntaff, Pontypridd, built by the truly astonishing Dr William Price as part of his development of a druidic museum. The museum itself, unfortunately, which was a larger round house, was demolished in 1950, and it is a reminder of the care we need to take to cherish this architecture and inheritance. 

To conclude, it is time for us to appreciate the full value of the built environment developed in the nineteenth century. Much of it was humble, vernacular architecture, but always with the dignity that comes from the development of strong communities. The terraced housing in particular has stood the test of time and has served many generations. It is adaptable and sustainable because of its embedded carbon. Not only is it a heritage worth investing in, it is also a vital part of what makes Wales special and distinctive. Nearly all of the heavy industry that stimulated this, the greatest programme of building in our history, has gone. The houses, however, remain; let's celebrate this rich inheritance. 

I had no idea what I was going to say until I'd heard what David Melding had to say. And what a wonderful, evocative and living picture that you've presented of my home community. I went to school in Heolddu in Bargoed and would walk up the side of the mountain to the school at the top of the mountain and see these wonderful terraced houses. I've talked about Bargoed, but also Penpedairheol, the village I grew up in, Gilfach, and also Senghenydd and Abertridwr also have these wonderful houses. I worry about Senghenydd and Abertridwr particularly, as being tucked away, away from the main area of work. My dream would be to see people travelling north again to work, whereas now they travel south. I want to see that economic regeneration you talk about, which is why the Valleys taskforce is so important. And also I have to add a critique a little of the Welsh Government strategy of a five-year housing land supply at all costs, settling the demand side without considering enough need. And the area that you talked about, David Melding, is that area of need. That's where we need to build houses, where we need to see our small firms growing and building houses, so that we can break this cartel that the big four housing companies have. And I think that is why we find it difficult to deliver the kind of housing that you're talking about now. I want to see that, and more power to you, and what a lovely speech. 

I just echo everything that you've just said there; it was a pleasure to listen to that, David. Actually, your comments about the crescent in Bath I particularly liked, and it made me look at—I remember seeing it on Facebook actually and I just managed to find it as Hefin was speaking—Crescent Street in Merthyr Vale. It's a crescent full of the type of houses you've been talking about, and every single one of them—I can see the picture here—has been closed down; all the windows are closed up and they're going to be demolished, basically, and I think that's one of the saddest pictures I've seen in a long time. The reason I wanted to speak to you today is because some of these houses, or these types of houses, I think could be saved using Help to Buy in Wales. I think you said that we don't really need to build new stuff all the time. Help to Buy would not only bring some of these houses back into use, particularly for first-time buyers, of course, but it would be targeting small and medium-sized builders and building enterprises rather than the big six, who, of course, are benefiting mainly from Help to Buy as it currently stands. Thank you very much. 

Thank you. Can I now call on the Minister for Housing and Regeneration to reply to the debate? Rebecca Evans.

Thank you very much. I do welcome this debate, and it was indeed a real pleasure to listen to. And I do wholeheartedly agree with you that Valleys housing is a heritage worth investing in and to be enthusiastically celebrated, as David Melding said.

Our Valleys housing is an important legacy, one which we as a Government will continue to protect and enhance. It has its own special character, one that comes from the distinctive pattern of settlement, as David Melding described in his speech, and the architectural design of the houses themselves. Valleys houses are an important part of our heritage and a testament to the rich social and cultural history of our Valleys communities. This isn't to say that Valleys housing has not been without its problems. As we've heard, the industrial revolution resulted in the Valleys experiencing significant population growth, and low-quality housing was often hurriedly erected and of poor quality. The Beveridge report, the founding document of the modern welfare state, recognised poor housing as being detrimental to health. Aneurin Bevan acted on the report's recommendations, making new house building and upgrading of existing stock a key priority in securing improvements in the health of the population.

This link between the quality of a home and a person's health is as important today as it was then, and this is why we're working across portfolios to integrate services and drive the efficient use of limited resources. We're using initiatives such as the integrated care fund to improve the links between health, housing and social care. When housing is properly considered and integrated with social care, it can have significant benefits to people and the NHS by preventing unnecessary admissions and supporting reductions in delayed transfers of care.

I recently saw for myself the positive impacts our partners can have in promoting health and well-being amongst their tenants in the Valleys when I visited Strive and Thrive in Rhondda. The project provides opportunities for Rhondda housing association tenants, as well as other local people, to participate in a wide range of activities, from walking football to canoeing. The people I met told me how this had increased their self-confidence and their self-esteem, and had provided them with a support network that they just didn't have before. Through the provision of these types of services, we can increase people's health, well-being and social aspirations, and these services also harness a sense of belonging within local communities.

As I've said, we recognise Valleys housing as an important part of our heritage, and this is why we continue to invest heavily in the existing housing stock. All social rented homes must meet the Welsh housing quality standard by December 2020. We provide £108 million of capital funding every year to local authorities and housing associations, to help fund these improvement works. The importance of this investment, which we've made over a long period, cannot be overstated, ensuring some of the poorest people in Wales have safe, warm and secure homes.

We know that parts of the Valleys have a number of challenges, and we're committed to addressing those challenges. By promoting economic regeneration with activities focused at the areas most in need, we can have a major impact. Our targeted regeneration investment programme, which is worth up to £100 million across Wales over three years, will be one important tool. I have seen for myself the difference our regeneration investment can make. Last year, I visited Lansbury Park in Caerphilly, where Welsh Government Vibrant and Viable Places funding funded energy efficiency work that were being undertaken on social and private homes. This investment means that the people living there will spend less heating their homes, easing pressure on what are sometimes very tight budgets. The investment also improved the visual look of the homes, giving people a chance to feel a greater sense of pride about the place where they live. 

As a Government, we are increasing the scale and rate of residential energy efficiency retrofit of homes. We are investing £104 million in the Warm Homes programme for the period of 2017-21. This will enable us to improve up to 25,000 homes for people on a low income or living in the most deprived areas of Wales, including the Valleys. Where properties do become empty, they can become a real blight on the local landscape. So, we are working with partners to get them back into use and providing a home. Our Houses into Homes revolving fund continues to support local authorities to provide loans to property owners to refurbish empty buildings as homes for sale or rent, and it's investing over £10 million in the Valleys.

Through the Valleys taskforce, we're working on another initiative with Rhondda Housing Association and RCT council. There are a number of properties in the northern villages of the county that are currently empty. There's no demand for general need social housing in this area. However, local people want to live in these villages and aspire to home ownership but often cannot afford a deposit or mortgage. So, we are working on a shared equity scheme to bring these properties back into use and enable local people to buy their own home within their community—very much something that Suzy Davies was describing in her contribution.

As we continue to protect and enhance the housing stock in our Valleys communities, it's important that we continue to build new housing where it is needed. New homes within existing settlements, or new larger developments, can lead to communities growing and thriving. I'm working with Cabinet colleagues to bring forward Welsh Government-owned land sites for housing development in the Valleys, as I recognise the role that our assets can play in delivering more homes and strengthening existing communities.

To support our ambitious 20,000 affordable homes target, we are investing in a range of tenures and a range of schemes to address the varied housing needs across Wales. Last year alone, we invested £52 million through the social housing grant programme across the Valleys, and I have seen for myself—

Will you take an intervention?

Yes, of course.

I commend the initiatives that the Minister has highlighted in her speech, but something that Hefin David touched on is a key missing link in the house-building toolbox, and that's the ability for small and medium-sized builders to actually get on the market and start building houses. I heard what you said about making Welsh Government land available, but there is a stranglehold by the big companies. So, what, in conjunction with making that land available, will the Welsh Government be doing to help small and medium-sized builders—local firms—have that ability to build those homes?

I completely agree that it is important that we encourage—well, more than encourage—we create the climate for SMEs to be able to build homes, which is one of the reasons we increased our property development fund under the Wales development bank from £10 million to £30 million. This fund is for SMEs to be able to access finance when they might not be able to access it from other sources in order to enable them to build homes within our communities. That fund is a recycled fund, so, over the course of this scheme, it will allow up to £270 million of investment through SMEs in house building, which I think is really important. But, again, it is often about finding those plots of land that we are able to give up for social housing, or other housing, depending on the local need, which is why I'm working with Welsh Government colleagues to identify those plots of land. We also have an exciting self-build plot shop scheme, which we are developing with RCT to see what we can do particularly in the Rhondda to use those empty plots within communities for SMEs particularly, or for people who would like to build their own properties to be able to do so.

So, on a visit to the former Bargoed fire station site recently, I did visit some new social rented flats and a supported housing scheme that was helping people to regain or develop their confidence to be able to live independently. Alongside this investment in social housing, we're also allocating significant resources to assist people wanting to purchase a home through Help to Buy—Wales, Rent to Own—Wales and Shared Ownership—Wales. In addition, we continue to support potential innovative solutions, or innovative approaches, to our housing challenges, such as the Co-operative Housing in Wales project, which has led directly to co-operative housing models being developed in the Valleys, including in Gellideg in Merthyr Tydfil and Rhydyfelin in RCT. Through our Innovative Housing Programme, we are keen to look at different ways of doing things, building homes that are fit for the future. Some of the excellent schemes funded last year include an extra-care scheme, providing 40 homes using factory-built units in Aberdare, as well as eight homes in Aberkenfig, using a modular system manufactured in the Wernick factory just 10 miles from the construction site. I'm also keen to explore new ideas. For example, we are working closely with Valleys authorities in developing new and innovative ideas for self- and custom-built homes. These ideas include using public land assets, planning and financing, and I hope to make a more detailed statement on this in the autumn.

Looking forward, I want to set even more stretching targets in future, both in the Valleys and right across Wales, in terms of house building, and I also want the Welsh Government to continue to create a climate that drives innovation and improvements in terms of design, quality and energy efficiency. This is why I have commissioned the review of affordable housing supply. That review is going to need to balance the growing need for affordable homes against a backdrop of continuing pressures on the public expenditure available to support house building. 

The Valleys taskforce is continuing its work to focus resources on bringing about real change for the south Wales Valleys, and housing is a really integral part of this work. Following a period of talking and listening to people who live in Valleys communities, we published the delivery plan in November, and this consists of actions and programmes across Welsh Government and includes actions relating to housing development and improving town centres. As part of this, a project commissioned by the Joseph Rowntree Foundation is seeking to gather information about the housing difficulties faced by low-income households in the Valleys and to provide recommendations for future improvements. I very much look forward to shortly receiving that final report and considering any subsequent actions as a result.

So, Valleys housing is clearly a heritage worth investing in, and we're doing just that. We must protect and cherish this past heritage as well as looking to the future. The Cardiff city deal has made housing a focus across the region, which offers real opportunity for a more strategic approach and targeted use of resources. The south Wales metro is a huge opportunity to link more communities to economic hubs and help sustain and invigorate Valleys communities. We will make sure that we make the most of these opportunities to enhance the future of Valleys communities.

So, to conclude, we're taking decisive action to maintain and improve our Valleys housing stock for current and future generations. We're also supporting wide-ranging and innovative programmes to increase the housing supply in the Valleys and across Wales. An investment in housing is an investment in our Valleys communities, and our record shows that we do invest in these communities, and we will continue to do so.

Thank you very much. That brings today's proceedings to a close. 

The meeting ended at 19:26.