GUEST COLUMN:
Tim Grey
Sales Director
Llanmoor Homes
Recently, the Plaid Cymru-led Welsh Government made an important housing announcement that largely slipped under the radar.
Cabinet Secretary for Local Government, Housing and Planning, Siân Gwenllian, confirmed that the Help to Buy Wales scheme will continue for applications until 31 March 2027 (subject to legal completion of the purchase being effected by no later than 17th December 2027), giving many more people the opportunity to buy a new-build home with a smaller deposit.
The popular scheme had been due to end for applications this September, and many Welsh housebuilders, including Llanmoor Homes, had called for it to be extended.
Schemes such as Help to Buy Wales have played an important role in supporting thousands of buyers who might otherwise struggle to access homeownership. Experience elsewhere has shown that withdrawing this kind of support can have a noticeable negative impact on housing delivery.
We have consistently called for Help to Buy – Wales to be extended to maintain confidence among both new home buyers and developers.
This latest announcement will help more people onto the property ladder over the next six months while providing valuable support for the new-build market in Wales.
The only slight disappointment is that the £300,000 price cap has not been increased to reflect increasing house prices, caused as a result of very significant increases in build costs to comply with the changing legislative requirements around energy efficiency of all new homes.
These build cost increases cannot continue to be absorbed by developers and will have to be passed on to the home buying public.
Increasing housing must be a key political priority
While the immediate impact of this extension may appear modest – it is expected to help up to 400 households – what it represents is far more significant.
Plaid Cymru has rightly highlighted the need for more social housing, but until now it has been less vocal about the equally important role that open market housing must play in tackling Wales' housing shortage.
Housing should be one of the defining priorities of this Senedd term. There is a shortage of homes across Wales, and if the new government fails to address it, the long-term consequences for the country's economy and wellbeing will be significant.
Increasing the supply of social housing is only part of the solution. Wales also needs more high-quality open market homes, and the government must recognise the vital role that private sector developers can play in meeting this national challenge.
Delivering more homes will require a planning system that is faster, more responsive and more predictable, supported by a genuinely pro-development approach across both the Welsh Government and local authorities.
Housing should be recognised as a driver of sustainable economic growth, thriving communities and improved quality of life. The new Welsh Government has an opportunity to make a real difference by introducing a number of practical reforms.
We need a better planning system
The planning system in Wales is not operating as efficiently as it should for a series of well-documented reasons. Securing consent for developments is often a very lengthy process, often involving unnecessary complexity and delay.
Plaid pledged planning reform in its manifesto and while we wait to see how those commitments will be implemented, there is a clear need to remove barriers and create a more supportive environment for delivering new homes. One priority should be ensuring Local Development
Plans (LDPs) are adopted more consistently and updated on time, providing greater certainty for development over the medium and long term.
Where land has already been allocated for housing within an LDP, there should be a clear presumption in favour of development. That level of certainty would help bring forward sites more quickly and reduce unnecessary delays in delivering much-needed homes.
SME housebuilders need better support
The number of SME housebuilders operating in Wales has fallen significantly in recent years because of rising costs, increasing regulation and difficulties accessing finance.
The result is a less diverse housebuilding sector, which risks reducing both the pace of delivery and the variety of homes being built. Smaller developers like us play a vital role by bringing forward sites that larger firms may overlook and responding more effectively to local housing needs.
Supporting SMEs through better access to finance, proportionate regulation and incentives for smaller developments would help restore balance to the market and increase overall housing delivery. A more diverse housebuilding sector is not only good for the economy but essential if Wales is to meet its housing needs.
Extending Help to Buy – Wales is an encouraging first step from the new government and sends the right signal to the housing industry. We hope the scheme will be extended again beyond March 2027, with the price cap also increased to reflect build cost increases and allow even more buyers to benefit.
Housing is fundamental to Wales' future prosperity. It underpins economic growth, social mobility and the wellbeing of communities across the country. With a pro-housing Cabinet Secretary and meaningful collaboration between government and industry, we have an opportunity to make real progress towards delivering the homes Wales needs.
