– in the Senedd on 16 June 2021.
The next item is the Plaid Cymru debate on housing policy. I call on Mabon ap Gwynfor to move the motion.
Thank you, Dirprwy Lywydd. We live in an age of crises, and these crises are interlinked. There is an environmental and climate change crisis, which we've already heard about today; there is a public health crisis and there is an economic crisis.
Now, why am I talking about these other crises in a debate on the housing crisis? Well, because housing is a common factor that applies to all of these crises, as well as some others. Consider the climate change crisis. About 14 per cent of the greenhouse gas emissions from the UK come from the housing stock, and Wales has the oldest housing stock in Europe, which is less energy efficient and needs more maintenance.
In terms of the current COVID crisis, we can now make a direct and indirect link between the impact of COVID on some victims and the quality of their housing. Or, if we look at the economic crisis, more wealth is being accumulated in the hands of a small number of people, who are buying larger numbers of properties, while the poor become poorer and homelessness is increasing. Yes, the housing crisis is cross-departmental. But, in starting to solve it, we can achieve a better quality of life for tens of thousands of people.
Of course, there was a housing crisis before the coronavirus, but the pandemic has exacerbated it by highlighting the extent to which housing uncertainty has a disproportionate impact on our young, the most vulnerable and people on low incomes. There is no denying now that our society has a perverse relationship with property. Property that should be seen as a dwelling is now seen as a financial investment for personal economic benefit, not as an integral part of life—the right to a roof over one's head and the right to live at home.
Now, a central part of the debate on the housing crisis is affordability. Housing is now unaffordable for most people in every part of Wales, and I'm sure we'll hear more about that from my colleague, Peredur Owen Griffiths.
Some say that it is more jobs that are needed. Yes, of course, spreading wealth and jobs across Wales is part of the solution, but it is not the solution in itself, because, as things stand, and without far-reaching intervention, wages would need to double or house values would need to halve in order to bring balance back to the market. In simple terms, we need to intervene and bring control to the market in order to provide a fair chance for all to have a home, because the market is working against too many of our people in Wales.
Now, that last sentence will concern Members on the Conservative benches, because they believe in the power of the market—it's a fundamental part of their ideology as a party. But it is this lack of intervention, these laissez-faire policies, that have let our communities down time and time again. Their answer is to build more homes, but that is not a comprehensive solution to the problem either. This marriage between the free market and capitalism means that large luxury homes are built by developers, because that's where the profit is, although there is a huge demand for small bungalows or starter homes with one or two bedrooms.
In addition, many of our communities suffer from depopulation, yet we continue to see luxury homes being built. Certainly, the market is not meeting any local demand. If the free market is meeting demand, then why are there 67,000 people on waiting lists for social housing in Wales? The free market is working against the people of Wales—that's the truth.
Now, while the Conservatives are promoting the ideology of laissez faire, the real laissez-faire party in Wales, the party that implements that ideology, is the Labour Party, which has done very little to intervene in the market over the past 20 years. This is the legacy of New Labour and its 'light-touch regulation', which is still alive and well here in Wales.
The most obvious example of this lack of intervention in my constituency, in Dwyfor Meirionnydd, and in countless other communities across Wales, is the issue of second homes and the increase in short-term holiday accommodation, such as Airbnb. Now, the majority of people brought up in these communities, such as Mumbles or Tenby or Brecon or Capel Curig, have now been priced out of the local housing market. Indeed, half of the people in post-industrial communities like Blaenau Ffestiniog have been priced out of the local housing market.
According to research by Dr Simon Brooks, while the pandemic has made things worse, there is a real danger that leaving the European Union can make things worse still. He warns that a percentage of the 70,000 owners of second homes in France, or the 66,000 owners of second homes in Spain, may look to buy a property here. According to last year's land transaction statistics, just under half of the houses sold in my constituency of Dwyfor Meirionnydd were higher rate properties. Now, while there are several definitions of what a higher rate property is, in the case of Dwyfor Meirionnydd, it means second homes, mainly. That is the level of challenge facing our communities today.
Over the last year, we have seen wealthy buyers paying well over the asking price in cash, driving up property values and ensuring that local people, who are generally on low pay, do not have an opportunity to buy in their locality. Wales indeed saw the largest increase in property values over the past year, with house values shooting up 13 per cent on average, with some areas, such as Carmarthenshire, seeing an increase of nearly 23 per cent, and Anglesey seeing an increase of 16 per cent. This is completely unsustainable.
Of course, in discussing this problem in Wales, we have to recognise that this is a problem across the western world. Indeed, Aotearoa has taken steps to prevent non-citizens from buying property there. So too have Denmark and Austria, which have strict rules about who can buy property in those countries. Regional legislatures in Australia, Canada and Italy have acted on the issue of second homes, while the local governments of Amsterdam, Paris, Berlin and others have taken steps to act on short-term holiday accommodation, such as Airbnb. But we have not yet seen any action here in Wales.
We in Plaid Cymru have set out the actions that should be considered. Recently, Gwynedd, Anglesey, Ceredigion and Carmarthenshire county councils wrote to the First Minister calling for amendments to section 66 of the Local Government Finance Act 1992, so that any dwelling is defined as a dwelling and is therefore liable for full council tax. We've called for amending the town and country planning Order to include an additional use class for short-term holiday accommodation, such as Airbnb, and have called for introducing a mandatory licensing scheme for short-term holiday accommodation, which would be the responsibility of the local authority to implement. These are measures that can be implemented quickly through secondary legislation.
In our party, we've also talked about the need to triple the land transaction tax on the purchase of second homes, which is a step that has been taken in other countries. We've also mentioned the need to pilot the creation of a new planning category for second homes, which would give power to local authorities to control the number of second homes and cap the number of second homes in pressurised communities. These are just some of the recommendations to tackle part of the wider problem, and we must accept that this is a much wider problem than the problem of second homes.
According to the current chief economist of the Bank of England, Andy Haldane, the main levers for tackling the housing crisis are in the hands of the Government. He mentions the tax rates, planning rules, as well as measures to promote house building. Our Government here in Wales cannot hide behind the failures of Westminster in this case, because these three things are within their competence and they have the power to act. The question is: will they act before it's too late? Thank you very much.
I have selected the amendment to the motion, and I call on Janet Finch-Saunders to move the amendment, tabled in the name of Darren Millar. Janet.
Amendment 1—Darren Millar
After 'crisis' insert:
'including taking action to:
a) bring empty properties back into use;
b) restore the right to buy in Wales;
c) scrap the land transaction tax for first-time buyers;
d) value the contribution that responsible registered landlords make to providing suitable accommodation for tenants; and
e) bring forward legislation on building safety.'
Diolch. I stand to move the amendment, tabled in the name of my colleague Darren Millar MS.
Now, a great test as to the ability of this Senedd and the Welsh Government to change people's lives for the better across Wales is the need to get a grip on the current housing crisis. Wales has seen the biggest house price growth in the UK, up by an average of 11 per cent in the past year. Offers are being made now before viewings taken, and we all know that many locals are simply unable to rent or buy homes in their own community. A key factor in this, of course—despite what my colleague over in Plaid Cymru said—is the need for new housing supply. It is estimated that north Wales needs as many as 1,400 additional homes annually over the next five years, but the latest data shows that only 1,284 were actually delivered. Mid and south-west Wales need as many as 2,000, yet are only achieving around 1,300 annually. And whilst south-east Wales could require almost 5,000 annually, the latest rate of delivery is about just over 3,100. So, the evidence points to a new house building shortfall across this nation.
We need to create a more attractive environment for builders to invest here, but, in doing so, we need to respect communities and democracy by ensuring that all sites allocated in LDPs are actually built on before any contingency or other locations are considered for planning applications. Another immediate step we can take is to build social housing in communities where the crisis is at its worst, and then restore the right to buy in Wales, empowering local people to own a home in their own community. This would actually go some way to positively address the fact that new dwellings completed have fallen by a third since the start of this Senedd in 1999.
As the Chartered Institute of Housing Cymru have stated:
'Social housing plays a vital role in alleviating those at the sharp end of the housing crisis'.
The private rental sector has a part to play too. The vast majority of our landlords are compliant, conscientious and responsible. The National Residential Landlords Association found that 90 per cent of landlords who were asked agreed to some degree of rent assistance. That was in addition to emerging measures like extended notice periods and the possession ban, which has led to some landlords falling into financial dire straits. However, this Welsh Government has put in place a system now that does allow bad tenants to take advantage by refusing to pay their rent, even when they are in an actual position to do so. So, it is little wonder then that a third of landlords have now indicated that they are more likely to leave the market entirely. And that would create a disastrous situation, as the shrinking available housing stock will make it even harder for people to find homes. The arrears issue has to be addressed, so I support calls from the NRLA for a relaxation of the eligibility criteria for a tenancy saver loan. The truth of the matter is that if you make it more attractive for a private landlord to move into the holiday let sector, then you're going to have less permanent accommodation.
Property owners can rent via Airbnb, as has been talked about, with ease and then they qualify for business rate relief. This loophole does need to be looked at and restricted so that only our long-term genuine holiday let businesses can benefit. As Dr Simon Brooks has stated, there are communities with a second homes problem where providing a sufficient supply of rented accommodation is more important than limiting the numbers of second homes, so you should be looking to incentivise our private landlords so that they wish to keep renting their properties to those who need them and to help bring empty homes into use, such as through a holistic package of council tax incentives.
It is a crisis that the total number of chargeable long-term empty properties has remained at around 25,000 annually during the last Senedd. We all agree that these need to be brought back into use. So, another way you can do this is by extending Help to Buy to include buildings in need of renovation. As it stands, Help to Buy is on a downward trajectory, so, therefore, it is vital that the Welsh Government encourage aspiration, and you can do this, for sure, by scrapping the land transaction tax for first-time buyers. I hope that the points I have outlined today actually do provide a cross-party starting point for co-operation on this crisis. Diolch.
Can I say how glad I am that housing is being discussed so early in this Assembly term? To many of my constituents, housing is incredibly important. Many are inadequately housed, in temporary accommodation or homeless. We also know that household size has decreased, with more people in single-person households, and it's a trend likely to continue.
Far too many houses are empty, not enough council housing is being built, we have seen the return of leasehold and high maintenance charges, and we are seeing estates built with their roads and pavements not up to adoptable standard. According to data obtained by ITN news in 2018, there were 43,000 empty homes in Wales, with at least 18,000 empty for more than six months. These include all sorts of properties, including some in the most sought-after areas. I have no reason to believe that this number has reduced over the last three years.
Empty homes are a wasted resource at a time of substantial housing demand. They can also cause a range of social and environmental problems. They can lead to vandalism, crime, anti-social behaviour, drug abuse, as well as other issues, such as overgrown gardens, unsteady boundary fences and damp. They also represent, more importantly, a potential housing resource that is currently underutilised. Bringing empty homes back into use can help address a number of housing and social issues by increasing supply in areas where there are housing shortages.
There are two ways of increasing the building of new houses in Wales. One is to abandon all planning controls and let the market decide where houses can be built, which is effectively what happened before the Town and Country Planning Act 1947. This will lead to building in areas that are currently protected. The second way is to have large-scale council house building, as we did in the post-war years prior to 1979. Both strategies worked previously; there's no reason why these strategies would not work again. I just think the second strategy is a far, far better strategy than the first.
We need more social housing. Affordable housing should mean council housing and housing association housing. Rather than an all-Wales target, we need to have targets for each local authority area so that local needs can be met. The only time since the second world war when sufficient housing was being built was when large council housing estates were being built the length and breadth of Wales. We must build enough affordable homes to meet Wales's projected housing needs over the next five years. This should be achieved through the empowerment of local councils to make full use of their borrowing powers and borrowing capacity to build homes and bring back empty homes into use for social rent.
Housing associations and councils that do not have stock transfer should have a common waiting list and also have a transfer system between them. This would help people move from large houses to smaller houses as they get older, without having the problem of their not being able to transfer and having to reapply. This really is something that would work. Lots of people—the family home is there, the family have left, it's one person left in it, it's a three- or four-bedroomed house, it's totally unsuitable, they want to move, but finding somewhere for them to move is very difficult and, consequently, we end up with a situation where we have families living in very poor accommodation and people who want to move out unable to move into smaller accommodation.
We need to cap social rent at the consumer price index of inflation, so that rents do not outpace wages or benefits. And it's important to make the point that housing policy and a building skills policy must be better linked in Wales, otherwise there will be nobody available to build or assemble the homes we want or to retrofit the ones we already have. There's a lot of work to be done in housing. We need the skills to do it. We need a coherent integrated policy for housing, ensuring we have skilled workers to build the houses.
The commitment of councils to build houses: funding for council house development, including using prudential borrowing and borrowing against the value of council stock. Developing co-operative housing: I've written about this in great detail, but we are well behind the rest of the world in producing co-operative housing. More importantly, the political will to tackle the housing shortage. Everyone deserves a decent home; it's up to us to ensure that everyone has a decent home, and I would urge the Welsh Government to set about a strategy that gets people into houses. And the building of council houses has one other effect: it does bring back some of the houses that are privately rented into owner-occupation. So, it's a win-win for everybody.
During the past few weeks, we've heard a great deal about the housing crisis in Wales, and the media focus has particularly been on the impacts of second homes on Welsh-speaking communities. The importance of this issue is clear, but we must tackle the broader problem that we face in Wales.
While there are not as many holiday homes in South Wales East as in other parts of the country, the crux of the issue here is the same: people can't afford to buy homes in the place they consider home. Property prices and average wages are both going up, but when the former outpaces the latter, we have a problem. Local people can't afford houses in their neighbourhoods. The communities I represent are no exception.
So, how bad is it in the south-east? Well, in the last year, Caerphilly's average property price jumped by 10 per cent. It's a similar picture in Blaenau Gwent, Torfaen, Newport and Merthyr Tydfil. Compare that to the average weekly wage in Wales, which has only gone up by £1.71. What this means is that people in some of the most deprived parts of Wales are being priced out of their communities. Does this sound familiar?
The housing crisis affects every part of Wales. Those who are fortunate enough to get on the property ladder often have to rely on the bank of mum and dad. For those without family help, they have to turn to the rental sector, where accommodation is less secure and homelessness is more of a threat. The charity Shelter tells us that younger people have been impacted more by the economic brunt of the COVID crisis. Unless there is urgent Government action, there will be more misery on yet another generation's income and housing options.
Between April 2019 and March 2020, over 31,000 people approached their local authority for help with housing problems. More worryingly, the rate of households being threatened with homelessness has been rapidly increasing year on year, with nearly 12,000 households made homeless in 2018-19, the highest rate since the introduction of the Housing (Wales) Act 2014. Homelessness is a national problem that has a devastating impact on people and communities every day. It is a problem that we in Plaid Cymru have said for many years could be solved with the right political will. In the past, we have had to draw on international examples to make this point, but we don't have to do that anymore. The pandemic has changed things. It has shown us that homelessness can be eradicated in Wales with the right levels of investment and a desire to do something about it. We now have cast-iron proof that there is nothing inevitable about homelessness in Wales. The response to the coronavirus has shown what can be achieved.
We need to deal with some fundamentals. Affordable housing is different from houses we can afford. One is a term used by builders to get around planning regulations, the other is a core issue for our families, friends, neighbours and constituents. More can be done with existing legislation to address the housing crisis. Section 106 can be deployed to mitigate the impact of new developments on the community, and section 157 can also be used to prevent a development from being built as a holiday let, but also, crucially, can prevent a home from being sold as a buy-to-let within a prescribed period of time; or maybe a combination of both of these. The proportion of affordable housing—and by that I mean housing we can afford—must be increased on new developments. Why not insert a clause that compels affordable homes to be built before the stock is constructed? And I'm using the word 'development', and you might think this suggests progress, but in terms of houses we can afford, we seem to be going backwards.
History tells us that this is nothing new. Nearly 20 years ago, there were stories of property prices in Abertillery rocketing as the result of an influx of people from Bristol looking for a cut-price property deal. Today I have a constituent who can't afford to buy a house in Bryn Mawr for exactly the same reason. The point is not where they've come from, but the knock-on effect on our communities. The point is not just holiday homes, but a knock-on effect on our communities. The point is that we have a housing crisis in Wales and it's affecting our communities—all our communities. That knock-on effect has already reached some of the poorest communities and we are left with the question of where will they go, other than into homelessness. This Government has a duty to act and act now. If homelessness is caused—
Come to a conclusion, please.
—by a lack of political will, how will a Government be judged if they fail to act in the face of a housing crisis? Diolch.
Jane Dodds.
Thank you very much, Deputy Presiding Officer. I'm very grateful.
I'm just going to be very, very brief because I'm aware that there are other pressures, obviously, but I really just wanted to say a few words on housing. Many of us have some brilliant solutions, and we should be working together to make sure we bring those into a very clear coherent strategy.
I just want to touch on two things: the first is my real confusion here with the Conservative position that says on the one hand they want more social housing, and yet on the other hand, they want the right to buy. Because for me in my little brain, that means you're taking out housing from that social pool and you're not allowing local families to be able to access them. I really do think that people should be really clear that this is not a coherent strategy, and thankfully, for Wales, that is not the answer.
The second thing I want to comment on is the issue around second homes, which I know has been raised. This is so important and it's really urgent that we do something about this quickly. In Gwynedd, 10 per cent of the homes there are second homes. And if we see the way that second homes go across the swathe of coastal areas and the effect that that has on the communities and on our Welsh language as well, we need to do something very quickly. We don't know what that is; there is not one single bullet that actually leaves us in a better place. Is it about us not just doubling council tax, maybe making it tenfold, so that we use that money actually to give to young people and families for a deposit for a house? That could be one answer. That is really important that we look at it and we don't just dismiss it. Could it be that we look at the rate relief issue and we actually really look at something that really will resolve that? Could it be that we look at the position in our communities? And really, I want to see something that means that we listen to our communities, and we listen also to tourism, because we need to be clear that second homes and holiday homes do have an effect on our tourist and our hospitality industries.
I just want to finish with this and it is a plea to the Welsh Government: please do something urgent on second homes. Please bring together the agencies and the industries involved in it and let's get something that's really radical and progressive here in Wales. Thank you. Diolch yn fawr iawn.
Before I start, I'll take no lectures from the Liberal Democrats on second homes when some of them have got homes in France, and I even think the Liberal Democrat here has got two homes, but there we go; I'll leave that there.
As the Minister knows, housing is very close to my heart, and as I was a local government cabinet member for housing, I know intricately the issues that the sector is facing. Because currently the property market is out of kilter, with the vast majority of young people's aspirations of home ownership in Wales going out the window. People, especially young people, are becoming locked out of the housing market. Working people with well-paid salaries are struggling to raise the funds to pay the huge deposits needed to meet the criteria for mortgages.
The dream of home ownership for my generation is seemingly a distant memory. The average house price in Wales is six times the annual wage, and many people are struggling to find the deposits necessary for house purchases—as we've heard from other Members, even those with the bank of mum and dad. Mortgage lenders have not kept pace with the change in job markets, and it is harder now than ever before to meet the criteria of the main mortgage lenders. We find ourselves in a situation of shortage in the housing market, and prices being pushed up even further, with some areas of Wales seeing an increase of 50 per cent in average rises in house prices.
In my own constituency of Brecon and Radnorshire, we're experiencing an acute shortage of rental properties, and almost weekly inflationary pressures on house prices, and bidding wars between purchasers, and a stop now on development because of the new phosphate regulations from Natural Resources Wales. So, new home developments in my constituency have come to an abrupt stop.
Housing is now out of reach for a large proportion of my generation and others. This housing crisis in Wales is totally unacceptable. Politicians in this Chamber and wider talk the talk when it comes to the housing crisis, but we're failing to deal with the issue.
Many people of an older generation are home owners, benefitting from the decades of price booms in the housing market. But for those of us yet to get on the housing ladder it feels like an insurmountable challenge. The affordable housing just isn't there in the quantities we need it, and we cannot deliver unless the Welsh Government shows real ambition to build more homes and dedicate large-scale investment, relax planning applications, and grow the skills we need within our skills sector to actually build the homes we need.
So, Minister, what is your Government seriously going to do to help my generation and others to get on the housing ladder, and not keep pushing people into social housing or the private rented sector, which is not for everyone? I will work with anyone across this Senedd to bring in the policies we need to get this situation under control, because the current strategy just is not working. Diolch, Deputy Llywydd.
I'd like to focus today on housing conditions, and it is appropriate, as Janet reminded us earlier today, it is appropriate in thinking that it's four years after the Grenfell tragedy. It is clear from the meetings I've had with, and the messages I have received from, residents of high-rise apartments in Cardiff that there is great confusion about who is responsible for ensuring that those flats are safe, and who is responsible for paying the costs to make those flats safe.
Through no fault of their own, they are facing huge insurance costs, service charges and bills to deal with the cladding issue, as well as having to deal with the mental strain of knowing that they live in an unsafe building and cannot move. Put yourself in their position, Minister; imagine what it must feel like lying in bed at night worrying about crippling financial costs, and more than that, the safety of their own family. The residents feel like forgotten communities, despite the fact that many of them can look out of their windows onto our Senedd. They feel forgotten and they are waiting for Governments of both colours, blue and red, to give them the help they need.
Shelter Cymru says that no resident should have to pay for faults not of their own making, and I agree with them 100 per cent. These residents should not be paying for the faults of others. What assessment, Minister, has the Welsh Government made of the money needed to ensure fire safety and the safety of these high-rise buildings?
Because this year's funding is by not adequate by a long way. The work so far is very slow, and the costs so far do not count the costs of hiring scaffolding, hiring hoists and so forth, never mind the cost of the cladding itself. How will the Minister be able to assure us and assure the residents of those flats that that work will be completed as soon as possible? The Grenfell tragedy has brought a lot of things into this sphere, not only the safety of the way that we design, build and manage high-rise residential buildings, but also the way in which we listen to and, more importantly, respect the people who call those buildings home. We must acknowledge the tremendous pressure that many of those people are under. They have many questions that the Minister has to address as soon as possible, and here are a few of them.
Firstly, the properties are not sellable, Minister, and their value is virtually zero as they cannot gain EWS1 certification. Prospective purchasers then can't get a mortgage, so they can't sell. Yet, their council tax remains very high, some as high as group G. As council tax is based on the value of the property, and as councils are responsible for signing off these buildings and giving these buildings the building regs, and then allowing faulty buildings to have accreditation, should councils lower or even scrap council tax for these affected properties?
Secondly, why has the Welsh Government not yet set up the remediation fund for buildings affected by the cladding scandal? We understand that the first tranche from the Westminster Government was used to tackle COVID, but it's been four years and the fund has not yet been established. Flat owners bought their flats in good faith. Can the Welsh Government guarantee that the fund, when set up, will cover both buildings in public ownership and owned by private individuals?
Thirdly, how does the Welsh Government intend to pursue the developers whose shoddy workmanship and 'minimum legal standard' approach allowed this scandal to happen? Can they guarantee that they will follow the Australian approach, which gave money to the leaseholders first and then pursued the developer secondly?
Fourthly, would the Welsh Government consider an extension for the deadline of land transaction tax refunds? This would be a huge source to alleviate the stress of the residents. And finally, will the Welsh Government work with Plaid Cymru to seek the powers to introduce a windfall tax on profits of large developments? People are in limbo. They are paralysed with fear and are thwarted by financial pressures. People can't renegotiate mortgages, people can't sell their flats, people have families to raise, and the memory of tragedies such as Grenfell tower haunt them day and night. They need urgency, they need answers from the Welsh Government. Diolch yn fawr.
I note the Tory proposed amendments and I very much welcome this debate. Much of the contributions here today actually have been very interesting. We only have to look across the border to England and to the actions of the UK Government to see the very stark contrast in approaches to housing policy. It was revealed this week that the billionaire property tycoon John Bloor gave the Tory party £150,000—directly to the Conservative party—a mere 48 hours after a Government Minister approved a controversial housing scheme for him that was against the democratically elected town council that had rejected it near Ledbury.
In Wales, we are seeking to house the homeless, to support homeowners and aid renters, and not pander to profiteering developers. In Wales, we choose to improve existing homes, counter the battle to fight fuel poverty and create much-needed jobs, new training opportunities and supply chains, and within a carbon-neutral green policy base. Momentously, for the first time in decades, local authorities are building council houses again, and this has been achieved through the ending of the right to buy, as correctly interpreted by Jane Dodds, in Wales, to protect social rented housing for those in need, and lifting the cap on local authority borrowing.
In the fifth Senedd, the Welsh Labour Government exceeded its target of building 20,000 high-quality, energy efficient, affordable homes. This increase in affordable housing—housing, yes, that we can afford—is a direct result of the record £2 billion investment in housing over the last five years. In this, the sixth Senedd, the Welsh Labour Government will build 20,000 low-carbon homes for social rent. Post pandemic, this is never more needed.
Deputy Llywydd, we want to see people own their own homes, if they so wish to do so, which is why buying a house has been made hugely more affordable through the Help to Buy scheme, which now exceeds its 6,000 target. However, it is social housing for rent, as Mike Hedges has stated—affordable rent—that provides the backbone of all more equal societies, and now, in Wales, thanks to strategic change, local authorities are now able to build again, and we will grow this. Mike Hedges is right again in terms of co-operative housing: we are needing to grow this area. The pandemic has further revealed the determination of the Welsh Government to end homelessness, as no-one should ever be forced to live in all weathers on the dangerous and unhealthy streets. And since lockdown, the Welsh Government has accommodated 7,000 people and made £50 million available to begin the transformation of homelessness services, including really important 'sticky' support enablement, to support the move-on to permanent homes. Put simply, the Welsh Government has a proud record on housing and it is one that I fully and wholeheartedly support. Diolch.
The first contribution I made in this Chamber in 2016 was about housing, and it was particularly about Caerphilly's local development plan. I was one, as a Caerphilly councillor, of a minority of councillors who voted against the proposed Caerphilly local development plan in 2016. At the time, my colleague Pred suggested to me I was doing it for political reasons. Believe me, I was doing it because I thought it was a really bad plan that needed to be ditched. I think I proved myself, Pred, because when I came into this Chamber, one of the first things I raised was the need to ditch that LDP, and sure enough that Caerphilly LDP was ditched within three months of my election here.
The reason for that LDP not working was because it was working towards the housing land supply, not housing affordability, and the pressure came from Redrow and Persimmon to build in the south of Caerphilly to take pressure off high-demand areas of Cardiff—for the south of Caerphilly to become a commuter town. That is why we opposed that LDP. Unfortunately, it didn't protect the area of Gwern y Domen, which was protected as a result of the LDP being taken away, but there was an area in the LDP that was protected, which was Hendredenny, and we know, Pred, don't we, that Hendredenny is being built on right now, by Redrow, and this is part of the problem.
The solution I raised, Minister, in 2016, was the need, as identified in the Planning (Wales) Act 2015, for a strategic development plan—a strategic development plan for south-east Wales. We are yet to see one. The Cardiff capital region is the most progressed on a strategic development plan, but if we are to take pressure off local areas and look at a wider area, we must have strategic development plans around south-east Wales. The Act was introduced in 2015 to allow it. They must now be operationalised.
The other issue that I want to raise—. I'm going to be very brief, Dirprwy Lywydd. The other issue I wanted to raise was associated with that. Where Redrow are building houses, they're then transferring green areas into the ownership not of the local authority but of private landkeepers called estate management companies, who are charging freehold residents on top of their council tax to upkeep those areas. There is no cap on how high those fees can go and there is no limit on how much they can charge. They don't even have to be charging for what they're doing on the land; they can use overheads from elsewhere in their company. If some people in this Chamber wanted to get together and create an estate management company, they could do it now and start charging residents. That is the problem with this 'wild west' part of the housing industry that needs control. I know the Minister takes this seriously, because she made sure that it was in the Labour manifesto. She's already opened a consultation and called for evidence. The evidence is before her, so we're looking forward to progress.
So, those are two things I'd like to see progress on: strategic development planning and estate management charges. Minister, we'd like to see action as soon as possible.
I call on the Minister for Climate Change, Julie James.
Diolch, Dirprwy Lywydd. Firstly, let me sincerely thank Plaid Cymru, and Siân Gwenllian, in whose name it is, for tabling this very important debate so early in the Senedd term. I'm sure you've noticed that we have not amended the motion that you put forward. We didn't do that because we agree there is a housing crisis. Senedd Members will have seen our programme for government published earlier this week. It is very clear about our commitment to be ambitious and radical, to take action and tackle challenges head on, and to improve the lives of everyone across Wales.
The pandemic has focused all our minds on the need for everyone to have access to a safe, affordable home, and, of course, it has highlighted the huge challenges that people face who don't have a permanent home. Perhaps now more than ever, we appreciate what it means to have a safe and secure roof over our heads, somewhere to call home, and this is very much reflected in our programme for government.
Deputy Presiding Officer, I will certainly not have time to cover in any detail, or give proper weight to, all of the issues that have been raised by Members across the Senedd today. I would need my time for each one of the issues raised here to be able to do justice to it. I would therefore very much hope that we will be able to have a number of debates across the issues raised today and that, actually, we'll be able to work together across the Senedd to solve some of these problems, for which I think there is at least some consensus.
Building on the strong foundations we laid during the last term of government, we are committed to building homes for the future—well-built, climate-secure homes that families want and can afford. We exceeded our target for affordable homes in the last Senedd term; the target for this term will be more challenging again, focusing as it does on 20,000 homes for rent within the social sector. So, very much more specific than the affordable homes definition that Members will have seen and not approved of previously. A number of people mentioned it here today.
The details of our housing target are set out in the ministerial statement that I issued earlier in the week. The statement makes it clear that, to support truly sustainable communities, we will ensure that developments deliver genuinely mixed-tenure housing across the whole spectrum of tenures, from owner-occupier housing and shared ownership to homes for rent that people can afford. Investment in social housing and greener housing has many benefits. It can create local jobs, contribute to decarbonisation, build the foundational economy, develop skills, tackle fuel poverty and, of course, provide better quality homes, helping to make homelessness a thing of the past.
It is absolutely crucial that our focus on social housing remains, so whilst we exceeded our target for affordable homes in the last term of Government, our commitment for this term raises the bar in two very significant ways. Firstly, they will all be for rent within the social sector, and secondly, they will all be low-carbon homes, kind to the climate, warm and affordable. Let me be clear that this target is not in any way about market housing. Help to Buy—Wales remains an important part of the toolkit here in Wales to ensure that people and families can have a home that is right for them, but it's not part of the target that we set ourselves for the 20,000.
The target is a challenging one. Our housing need estimates show that, under central estimates, around 7,400 additional homes a year are needed for the next five years, and this includes a need for 3,500 additional affordable homes each year. The target goes beyond that and I think it's absolutely right that it does. In recognition of our continued commitment to social housing, we've already allocated a record £250 million to the social housing grant this financial year. This is more than double the budget seen in 2020-21. And of course, the supply of genuinely affordable homes is fundamental to resolving homelessness. However, we also need the systems, policies and practices that support people to thrive in the homes once they have them.
I am so really proud of the whole housing sector and the way they came together during the pandemic. It was something that Wales did really well and I am humbled and proud to have been a part of it. We will be able to build on the fantastic work we did during the pandemic to truly transform our approach to homelessness, making it genuinely preventative and, where it cannot be prevented, ensuring that rapid rehousing approaches mean that it is indeed rare, brief and unrepeated. During the pandemic, we have, in fact, supported well over 10,000 people into temporary accommodation. We proved that we can rise to the challenge of rapidly rehousing everyone in their moment of need, without rationing or prioritisation. The investments we have made to date are not just about a short-term fix to an immediate crisis; it is the start of a transformation journey towards ending homelessness in Wales forever. We now have a unique opportunity to transform homelessness services and adopt a truly inclusive approach to ensure that no-one is left without accommodation or support. We must move from reliance on temporary accommodation to a system focused on prevention and rapid rehousing. The homelessness action group recommendations support this and set out an ambitious vision for Wales, where prevention and rehousing form the core of our homelessness policies and practice.
Of course, prevention can be complex. Our housing support grant has prevention at its core. It's designed to support people to live independently and to help them maintain tenancies and prevent homelessness. That's why I increased the grant by £40 million this year—an increase of around 32 per cent. This recognises the importance of housing support as part of that preventative agenda. But we recognise that homelessness transformation will take a number of years. We have made significant progress this year; we've kind of proved the concept, if you like, and we are now firmly on the track to making this happen in Wales.
Alongside that, the Government has made it clear that the environment will also be at the heart of our decision making. In creating this ministry for climate change, we've brought together environment, energy, housing and regeneration, planning and transport, giving us a real opportunity and all the critical levers to develop the sustainable communities that the people of Wales want and need. The environment doesn't just have a seat at the Cabinet table; it will be a consideration in everything we do. We are now developing new housing standards in the social housing grant programme that focus on quality, space, energy and decarbonisation.
Members who were here before will know that we've already launched the optimised retrofit programme to begin to deliver our decarbonisation ambitions for the existing housing stock in Wales, bringing better homes, jobs and the skills of the future to those homes, as well as the new build that we are progressing. We are embracing innovation and new approaches to house building and to house retrofit through our innovative housing programme and the support of modern methods of construction.
Our commitment to ensuring families and individuals have access to housing that enables them to thrive has not wavered, and our plans to address the barriers to everyone having a decent place to call home do not stop with those I've outlined this afternoon. We're also delivering housing-led solutions to people's health and care needs, driven by our integrated care fund. We will continue to address the barriers and discrimination tenants face both in accessing and staying in their private rented accommodation.
I did agree with one thing Janet said: she is correct to say that the vast majority of the landlords in Wales are good landlords and we work very well with them. Rent Smart Wales has proved an excellent tool during the pandemic, because alone amongst the Governments of the UK we know where our landlords are, we are in contact with them and we're able to contact them directly.
But, we also want to make significant improvements to the protection we give our tenants and their ability to pay. We all know that once you're in a year's rent arrears, you are not going to recover if you're on a low income, so we will work hard to bring forward support for those tenants to enable them to stay in their homes—also, of course, enabling the landlords to benefit from the rent that the tenants can then pay—and, really importantly, preventing those people becoming homeless too, on top of the already worsening crisis we have of temporary accommodation.
We will take significant steps to improve building safety so that people are safe and secure in their homes, the importance of which we've all been reminded of this week as the fourth anniversary of the Grenfell Tower tragedy passes, and which we did start a discussion on earlier today. I do not have time now to go into the details of all of that, but be assured we take it extremely seriously. I have met a number of the residents already and we are working very hard to unlock some of the complexities of that.
Alongside good placemaking, revitalising our town centres to be more agile and wider considerations like active travel, we will deliver exemplar sites as flag bearers for the future.
Last, but, of course, very much not least, we recognise the very severe issues relating to high numbers of second homes in some of our communities across Wales, and in particular the long-term sustainability of our Welsh-speaking heartlands. It's an absolute priority for us to deal with those issues, and our Welsh language community housing plan will seek to address pressures faced by those communities. A cross-portfolio ministerial task group is already formed and working.
It's clear that there's no single answer to solve the many complex issues involved, however, as was clear from the number of contributions with a large number of ideas, which we're happy to explore, that were put onto the floor today. But, our aim is clear and, I think, shared: we ensure that young people continue to afford to live in the communities they have grown up in, as well as ensuring the long-term sustainability and vibrancy of those communities.
We have the will and appetite to engage across the piece to take forward our manifesto commitments. As the First Minister said in the programme for government—
Will the Minister come to her conclusion now, please?
—one more sentence—we will always put collaboration ahead of competition. I ask Members to reject the amendment tabled by Darren Millar, but I will willingly work with Members across the Senedd to effect those ends. Diolch.
I now call on the Members who have indicated that they wish to speak. Jenny Rathbone.
Thank you very much. I just wanted to pick up on a couple of things. One is that I absolutely agree with the Minister that everybody needs to have a decent place that they can call home, and that is so much more refreshing than the language used by, for example, James Evans, talking about the housing ladder. I was even more astonished to see it in the Shelter Cymru briefing, talking about the property ladder.
One of the biggest problems we have in our economy is the perverse incentives to invest spare capital into bricks and mortar, rather than productive activity. We need to, somehow, change the way in which homes are regarded. One way is to look at abolishing capital gains tax relief on first homes, but that might, obviously, have other perverse incentives. But, we certainly need to look at homes, rather than housing as an investment.
I call on Siân Gwenllian to reply to the debate.
Thank you very much, Deputy Presiding Officer, and I’m very pleased to sum up this important and very comprehensive debate that we’ve had on housing this afternoon. We’ve discussed the shortage of houses, second homes, safety, planning, management fees—these have all been covered this afternoon. What is entirely clear is the need for intervention as a matter of urgency.
The shortage of affordable housing for rent or purchase does undermine communities the length and breadth of Wales, and destroys the hopes of young people. It is a national problem in Blaenau Gwent, as it is in Meirion Dwyfor. Income inequalities mean that individuals and families simply cannot compete in the market. In the western counties, from Gower to Amlwch, there is a lack of job opportunities with good salaries, and long waiting lists for housing, as well as too many second homes, creating a critical situation in broad areas of rural Wales. Far-reaching changes are happening frighteningly quickly, and they’re happening around us within our communities.
Equal economic growth across Wales is one part of the solution, yes; building appropriate homes in the right places—that, too, needs to happen. But, today, we are calling on the Government to take action urgently in those areas where we can move quickly in order to tackle this crisis and to ensure a sustainable future for our communities. The Welsh Government must support local authorities so that they can take action in tackling this problem. And one example is that the Welsh Government could fund housing action plans, which would be bold and comprehensive, as has been developed by Gwynedd Council. And may I just say to the Conservatives—and Jane Dodds is entirely right: restoring right to buy is not the solution? That policy has exacerbated this housing crisis and has done so over many years as the public housing stock shrinks, and vulnerable people are left behind.
In order to deal with the second home issue—and we must do this as a matter of urgency, and I was pleased to hear the Minister acknowledge that—there are a number of steps that the Government could take. I’m not going to go into detail on them this afternoon; we as a party have done that and focused on a number of areas where we could reform legislation very quickly in order to generate change. The First Minister has said that he’s eager to collaborate with other parties, and he’s also said that there isn’t one simple, single solution to the second home crisis. And, of course, I agree with him, we’re not claiming that there is a silver bullet to this problem, but there are entirely practical things that could be put in place whilst we have that broader debate around what is needed in the longer term in order to create sustainable communities.
We’ve set out our ideas a number of times over the past 12 months. I’ve stood in this place I don’t how many times talking about issues around taxation, planning, fiscal issues that could be addressed immediately. So, that’s what we want now: we want action in order to ensure that everyone has the right to live in their community, that everyone has a home, a dwelling, shelter. So, take action. I urge you to do so, and do those things that you can do that are within your powers before it’s too late. Yes, we’ll have further discussion in this place, but we now need to see signs of action. The time for discussion needs to continue, but we need action too. Our communities need to see that action. Our young people need to see that their nation’s Government is taking this crisis seriously and is willing to move and to put things in place that will help to start to resolve a huge problem in our modern age here in Wales.
The proposal is to agree the motion without amendment. Does any Member object?
Did I hear one? No.
No. The motion is therefore agreed in accordance with Standing Order 12.36.
In accordance with Standing Order 12.18, I will suspend the meeting temporarily before proceeding to voting time.