Building Welsh homes takes too long due to planning laws, developers say

News imageGetty Images Two builders in high visibility jackets and white hard hats look towards a tall set of unfinished flats with scaffolding around it.Getty Images
Reforming planning laws and extra cash to meet a hike in costs are needed to hit building targets, organisations say

Wales' planning system needs to be "overhauled" in order to build the homes the country needs, house builders have said.

Social landlords and private-sector companies have both said it currently takes too long to get permission to develop properties.

Housing associations, which provide homes to people at affordable rents, are also calling for extra funding to reach a Welsh government target to build 20,000 social homes by 2030.

The government said it was "committed" to hitting the target, which it said was backed by an additional £20m set aside in its recent spending review.

Housing association Beacon Cymru said building properties was taking too long across Wales due to the current planning system.

It pointed to 51 new apartments it built in the centre of Tonypandy, Rhondda Cynon Taf, which will soon see tenants move in seven years after the former Big Shed site was bought.

Chief executive Luke Takeuchi said: "We understand that there are resource pressures, but when you look at the time constraints and the delays – we need a system that is more cohesive, more efficient and is getting these applications such as the Big Shed through quicker."

An estimated 9,400 more homes are needed for people without a permanent place to live, according to the Welsh government.

It also says an average of 8,700 extra homes of all kinds – private and social housing – will be needed every year up to 2030.

But the most recent figures published on 9 July show just 5,159 were completed last year.

Although that is 11% more than the previous year, the industry says it has not recovered to pre-pandemic levels.

News imageA man with short brown hair and stubble on his face wearing a white shirt smiles while standing in a kitchen.
Luke Takeuchi says planning laws need to be revised in order to speed up development

Pontypridd-based builder Matthew Davies, a spokesperson for the Home Builders Federation, said: "The reason generally that there is a big gap is due to the planning system.

"There is land availability to meet the target, but the planning system needs a complete overhaul eventually.

"A planning application is taking between three and five years. That needs to be reduced to one to two years in order to achieve this target."

BBC Wales understands the government will publish more details about how it will measure progress towards the 20,000-homes target early next week.

The target was a manifesto commitment by Plaid Cymru at the Senedd election, and is the same target Labour had in its last five-year term in government.

Plaid has promised to hit it within the next four years as well as to lower regulations required to build and buy social homes.

Social homes are provided by councils and housing associations. Their rents and the quality of housing are controlled by the government, which also funds new building.

More than £2bn of Welsh government money was spent on social housing in the last Senedd, with rising prices and higher building standards pushing up costs.

The government grant required for a home rose 75% from £93,000 to £163,000 in four years, spending watchdog Audit Wales says.

News imageGetty Images A row of terraced houses is under constructionGetty Images
Social housing developments like these near Bridgend town centre are funded by the Welsh government

The deputy chief executive of Community Housing Cymru, which represents housing associations in Wales, said the extra costs meant the government needed to set aside even more money to build enough homes, and called for a "long-term plan to end the housing emergency".

Clarissa Corbisiero said: "We would like to see the government look at the money it puts towards housing in the budget later this year.

"The cost of delivering homes has gone up. We would like to see the budget settlement reflect that."

Housing minister Sian Gwenllian has said a shortage of homes is causing a "housing crisis" and has said she will work "relentlessly" to hit the 20,000 target.

A national agency, called Unnos, will be created to assist councils and housing associations with planning applications, find land and help get funding for projects.

A Welsh government spokesperson said: "We are committed to delivering 20,000 additional social homes by 2030.

"Backed by an additional £20m in the draft supplementary budget, this commitment will help tackle homelessness, reduce reliance on temporary accommodation, and ensure people across Wales have access to quality, energy efficient homes."