6. Statement by the Minister for Housing and Local Government: The Innovative Housing Programme Year 4 — Modern Methods of Construction/Modular Special

Part of the debate – in the Senedd at 5:31 pm on 3 November 2020.

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 5:31, 3 November 2020

Thank you for the statement, Minister. With regard to modular construction, whilst nearly 50 per cent of construction industry clients expect the use of off-site construction to increase over the next five years, it is a shame that the take-up of new opportunities has been limited by the lack of house building in general. The UK now lags behind Sweden, Germany and the Netherlands when it comes to the fusion of manufacturing and construction, while in Japan more than 15 per cent of new homes constructed each year are at least partly prefabricated.

Now, there are some excellent, innovative house building projects under way, such as Cartrefi Conwy here in north Wales, but we need to see more tech-driven solutions and an increase in the off-site development of homes. Will you provide further details as to how you are working to assist with the reasonable aim of moving home construction away from muddy, wet fields? This scheme is seeing some significant projects, such as 55, 72 and 90 homes. However, what about smaller schemes or single-unit developments? You have advised that to build 100 new social homes across four sites in north Wales meets your ambition for a green housing-led recovery, using Welsh timber and a Welsh MMC manufacturer, but what about other Welsh materials being included, such as slate and wool? Four hundred new MMC affordable homes should be delivered this year, but I understand that social landlords submitted IHP bids comprising over 850 MMC homes. So, am I correct, Minister, in understanding that you are therefore only supporting less than half of those homes, and if so, why is the successful application rate not higher? 

It is good that you are investing in different house building methods. I think that is the way forward also, but we still need to actually build more homes. The Q3 stats show that, here in Wales, there was a 17 per cent drop in new home registrations compared to the same period last year, and that for new home completions there has been a 5 per cent drop when comparing year on year. So, how are you going to address this? Could it be the ambition, perhaps, that you could support all 850 MMC homes? As you know, the IHP grant is available to buildings, subject to a change of use, that have not previously been used as residential properties. In the third quarter of 2020, the Welsh vacancy rate increased to 18 per cent from 15.9 per cent in Q2. Whilst appreciating that the grant could not be used by shopping centres, which have been worst hit, what consideration have you given to allowing private landlords to access the IHP, so as to assist with pursuing change of use and maybe creating some local jobs? We all know that the pandemic has caused serious difficulties in accessing tradesmen. Therefore, will you introduce some flexibility to the requirement that all applications must stick to the start-on-site date of no later than 30 April 2021?

Finally, the pandemic is hitting our young adults and our apprentices very hard. You spoke of supporting businesses to create more apprenticeships. The Chartered Institute of Housing Cymru have called for a workforce strategy to futureproof the housing sector—will you deliver on this? Thank you. Diolch.