We Need Urgent Action on Housing Land Supply in Wales

The shortage of land available for housebuilding in Wales is becoming a major barrier to delivering much-needed new homes. While land supply has long been a challenge, changes in recent years have made the situation increasingly difficult. 

At the heart of this are issues with our plan-led system. This approach – where land for housing is allocated through local development plans – ensures a steady pipeline of sites for housebuilding is supported by housebuilders. However, for the system to work, plans need to be kept up to date, and Plan reviews are simply not happening quickly enough. 

Welsh Government state that Wales has full or near-full plan coverage across Wales. But this does not reflect reality as many of these plans are now time-expired. This means that the land identified for development has either already been built on or is constrained or not viable to build. New or reviewed plans with new allocations are needed to come forward at the pace required to meet housing need. 

There is little if any incentive for local planning authorities to bring forward new plans. Plans are taking far too long to be adopted, and there are no consequences for delay or non-adoption. Furthermore, Wales lacks the requirement to maintain a five-year housing land supply. In England, this requirement acts as a strong incentive for councils to progress development  

The consequences of this are serious. Without up-to-date local plan allocations or the ability to rectify via the five year and supply argument, new planning applications cannot be brought forward. Without new allocations, there are fewer applications. And with fewer applications, housing delivery slows down. 

Welsh Government’s recent consultation on planning focused largely on increasing planning fees and improving planning performance. While we have made a submission in support of these proposals in principle, the real test will be whether higher fees lead to meaningful improvements in efficiency and performance. 

There is no question that local planning departments are under pressure. Many have seen staff numbers fall significantly, leaving them struggling to process applications in a timely manner. Planning is a difficult job, and it is clear that planners need better support, including competitive pay levels to help with recruitment and retention. 

However, any increases in planning fees must be matched by tangible improvements in performance. Fees need to be ring-fenced for planning departments to ensure that the additional revenue is used to boost resources. Local authorities must also be accountable for delivering faster, more efficient decision-making. 

The planning system is not broken but it is not working as it should, and there is opportunity now to take the action needed. Welsh Government must acknowledge that there is not up to date full plan coverage in Wales, meaning that the right land is not readily available for housing. Expired plans should be scrapped immediately and new plans advanced as a priority, and local authorities must be given the support and incentives to do so. 

To tackling the housing shortage, we need a planning system that enables. Land supply needs to keep pace with demand for housing and the mechanisms reestablished to ensure such.   Planning departments need to be properly resourced, and that there are clear expectations on local authorities to deliver. These adjustments are encouraged in order for housebuilding in Wales to respond to the pressing challenge of housing demand.