2. What action is the Welsh Government taking to increase the number of new homes being built? OAQ53832

Increasing the number of homes being built, particularly for social rent, is a fundamental priority for this Government. We are taking action, considering new ways of doing things following the review of affordable housing supply, and making record levels of investment in the home building industry. 

Thank you for that answer, Minister. Steve Morgan, the founder of Redrow, said recently that the best way to combat the housing crisis is to speed up planning permission to enable more houses to be built. He went on to say that the rules and directives have choked the system, meaning fewer houses are being built, which, in turn, makes it difficult for first-time buyers to get on the housing ladder. Does the Minister agree that the planning process for new housing is too slow and has a lot of red tape in it? Minister, what action are you taking to remove the barriers delaying the delivery of new affordable homes in Wales, please? 

I partly agree with the point that the Member is making, but I have to say I don't agree with it when we're talking about the large house builders. So, I think that there is a case to make sure that we simplify the planning process, perhaps by rather more site-specific planning approaches for SME builders across Wales, and our stalled sites programme, for example, is looking to do exactly that to bring those smaller sites into play. However, I must say I disagree with, I think, the Member's proposition that the large house builders need assistance with planning. My view, actually, is that we need to strengthen our planning rules around size, type and demand for those kinds of developments, so that we have sustainable communities being built with the right kinds of infrastructure alongside the houses, and not just urban sprawl, which can occur where you remove planning consent regimes. So, I think I'm partly agreeing with the Member, but not entirely.

We know that only twice since the first world war have houses been built in the numbers necessary to meet demand. Once was in 1930 when there was very little control over development; I think that was what Mohammad Asghar was asking for earlier. And the second time was in the 1950s and 1960s when we had the large-scale building of council housing, and not only large-scale building of council housing but the necessary infrastructure to go with it. I wish to stress the importance of large-scale council house building to meet housing need; I believe it's the only way we actually are going to be able to meet the needs of housing, because it's not in the best interest of private developers to build sufficient because that would depress prices, and their aim is to maximise profit. So, they wish to increase prices as much as they possibly can. That's how Redrow made just under £400 million profit last year. What is the Government doing to enable this to occur?

I agree with Mike Hedges; I think we're on the same page entirely. Traditionally, local authorities were indeed the prime providers of social housing across the UK with, of course, the massive house building programme that came in the post-war period. And those houses are still very popular homes today for some of the most vulnerable residents in our communities. But the building programmes were curtailed by financial restraints imposed by the UK Government on Welsh and other local authorities, and that has largely meant that large-scale council housing has been severely limited for a generation; in fact, since Margaret Thatcher introduced the right to buy legislation back in the late 1980s.

So, we do recognise the important role councils have in building new homes for local people, and I'm very enthused that we are potentially on the cusp of a new golden age for social housing in Wales. The Member, Mike Hedges, is completely right that the biggest increase in the scale and pace of social housing is expected to come from our local authorities, now they're able to build once again. The borrowing cap has finally been lifted by the UK Government, who've seen the light it seems, and there is an opportunity to turn council house building ambitions once more into results.

I've just had the affordable housing supply review published, and I'll be responding to those recommendations shortly. That review specifically considers what support local authorities will need to help them build again at pace and scale. We are welcoming of both the review and the lifting of the cap. We want to work very fast now to see whether we can get a revolution in social housing once again in Wales. 

Minister, I recently had the pleasure of visiting Rhondda Housing Association's Lle Ysgol development in Hirwaun that was built by a local small and medium-sized enterprise house builder, WDL Homes Ltd. And this brownfield development used a social housing grant to develop 12 homes, but also a commercial unit, which is, essentially, a village shop. How is the Welsh Government engaging with social landlords to encourage the development of retail units like this within their builds, which provide income for the landlord, but more importantly are a real asset to the local community, when we know that so many of our communities have suffered or are concerned about the potential for the loss of their village shops?

Yes, absolutely; it's a lovely project, actually. The Rhondda Housing Association, as she said, and the scheme at Lle Ysgol shows the benefits of partnership working in improving local communities. And as I said, we are very concerned to build communities, not just housing estates, and it's very important that the right infrastructure, including shops and other facilities, is there. The scheme, as you know, has regenerated a vacant site for that community. It has 12 homes, an adapted wheelchair bungalow and a new co-operative retail unit. We provided the social housing grant and housing finance grant, totalling about £1.1 million, towards the development of the homes there, and we encourage registered social landlords and councils across Wales to look at developing a community rather than a set of houses, for exactly the reasons that she outlined.