Planning Reform Is Vital for Wales’ Housing Future

The two governments in Westminster and Cardiff Bay have often taken very different approaches to housing and planning. While the Labour Government in England has pressed ahead with ambitious planning reforms, the Welsh Government has, until now, largely avoided such changes.

Could this be about to change? There appears to be a growing recognition in Cardiff Bay that planning reforms will be needed to deliver the Welsh Government’s target of 20,000 social rented homes as well as its broader housing ambitions. For instance, the First Minister, Eluned Morgan, has made speeding up planning a top priority, and a consultation earlier this year outlined plans to increase Local Planning Authority (LPA) performance and resources.

The recently released Affordable Housing Taskforce report is the latest sign of a positive shift in sentiment and sets out a series of ambitious proposals for reforms to both national planning policy and the planning process. Many of the recommendations bear similarities to measures already underway in England through the Planning and Infrastructure Bill and revisions to the National Planning Policy Framework (NPPF). Will the Welsh Government seize the opportunities the Taskforce has set out?

Affordable Housing Taskforce

Chaired by backbench Member of the Senedd (MS) Lee Waters, the Taskforce aimed to identify both short- and long-term barriers to Affordable Housing delivery. HBF submitted written evidence and met with Waters to provide input.

The context of the Taskforce’s work is extremely challenging. Housing supply levels in Wales are falling year-on-year, and in 2023-24 just 4,771 new homes were completed – the second-lowest year on record and far below the peak of over 9,000 new homes in 2006-07.

The home building industry is a major player in Affordable Housing provision, delivering 45% of all new affordable homes between 2021 and 2023 via Section 106 (S106) agreements – and so making a significant contribution to the Welsh Government’s 20,000 social homes target.

This is an important and often overlooked point, as with the delivery of affordable units so closely tied to private development, any fall in market housing delivery inevitably reduces the number of S106 Affordable Homes coming forward.

Constraints on housing delivery previously identified

To unlock housing delivery across all tenures, we have consistently highlighted several key constraints on development in Wales:

• Time-expired Local Development Plans (LDPs) which contain unviable and undeliverable housing allocations.
• Delays relating to statutory consultee responses and SuDS Approval Bodies (SABs).
• Under-resourced Local Planning Authorities (LPAs).
• No requirement for councils to calculate a housing land supply since Technical Advice Notice 1 (TAN1) was revoked in 2020, making it very difficult to progress sites which are not allocated in LDPs.

Taskforce recommendations

The Taskforce’s recommendations reflect many of these concerns. For instance, it recommended that land identified as suitable for housing in LDPs should have a presumption towards development. If implemented, this could be transformational and help stop allocated sites from being delayed or even refused once an application is submitted. However, there must be accompanying incentives for LDPs to be kept up to date in the first place to ensure an adequate supply of deliverable allocated sites.

Many of the Taskforce’s other recommendations are squarely aimed at addressing the key causes of planning delays, such as proposing that LPAs no longer wait for statutory consultees past their response deadlines and establishing multidisciplinary ‘development teams’ within councils to resolve delays – reflecting England’s ‘New Homes Accelerator’ teams and statutory consultee reviews. The Taskforce also called for greater delegated powers for planning officers on smaller schemes, raising the major development threshold to 50 dwellings, and introducing a national scheme of delegation, all of which could significantly accelerate housing delivery and support SME home builders.

What next?

Of course, while many of the Taskforce’s recommendations reflect those included in England’s Planning and Infrastructure Bill, Wales’ approach to housing is and will rightly continue to be distinct from that in England. For instance, it is extremely positive that the Help to Buy Wales scheme remains in place, providing vital support for first-time buyers and confidence for industry, while no such support scheme is in place in England.

Furthermore, the Welsh Government’s policy priority continues to be Affordable Housing, whereas in England, there is a greater focus on a general uplift in supply of all housing tenures. However, despite these differences, both governments now recognise the urgent need to deliver more homes and speed up planning.

But how many of the Taskforce’s recommendations will the Welsh Government implement – and when?

It is positive that the Cabinet Secretary for Housing, Jayne Bryant, has accepted the recommendations that fall to her and has set up an implementation group to oversee them (although the recommendations related to planning fall under a different minister).

Some recommendations could be implemented relatively quickly, while on the other hand, many of the more systemic recommendations, such as a presumption towards development for land identified in the LDP, would require new legislation and consultation, and so are unlikely to be implemented soon.

As a result, with the next Senedd election due in May 2026 and the possibility of a Reform or Plaid Cymru-led government, some of the more ambitious recommendations are at risk of being delayed or shelved.

What role can HBF play in these debates? Looking ahead to next year’s Senedd elections, HBF is actively seeking responses from home builders on what changes the next Welsh Government can make to planning and housing policy to further support the industry, and we will continue to push for changes to boost housing delivery of all tenures in the years ahead.