A report commissioned by the Welsh government to examine affordable housing supply in Wales has called for a reform of the grant system, and the introduction of long-term partnerships funding for social landlords.
The Independent Review of Affordable Housing Supply said reform was “overdue” and that the existing fixed-rate, annual grant system for affordable housing development in Wales has a weak focus on value for money.
The report called for the introduction of “grant partnerships” which would see money given to social landlords to deliver a target number of new affordable homes. This funding would be more flexible than current systems.
It also suggested that the Welsh Government implement a five-year rent policy from 2020-21, providing stability for tenants and social landlords.
The review was announced by then-housing and regeneration minister Rebecca Evans in April 2018, with the aim of boosting affordable housing delivery in Wales.
UK Finance director of mortgage Jackie Bennett says: “Today’s report is an important contribution to the debate on how to boost the supply of affordable homes in Wales.
“Lenders are committed to playing their part in increasing affordable housing and the industry already provides billions of pounds of private finance for social housing in the UK each year. UK Finance and its members now stand ready to work with the Welsh government to build on the recommendations of this report and support long-term investment in affordable homes.”