Written By:

Dane Westwood,

Marketing Manager & Specialist in surety bonds for the construction industry

CG Bonds

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Wales, like much of the UK, is currently in the grip of a housing crisis. Between 2023 and 2024, only 5787 new homes were completed – one of the lowest figures since records began. At a recent government debate, Janet-Finch-Saunders, Conservative shadow housing minister, stated that an average earner in Wales could expect to spend more than seven times their annual earnings on an average-priced home. 

In between the 2011 and 2021 census, Wales’ population has grown by 1.4%. According to Welsh government estimates, between 6200 and 8300 new dwellings must be built to meet the demand of a growing population. This target is currently not being met. A combination of stagnant salaries, a shortage of available homes and a shocking number of unoccupied properties – an estimated 7% of homes in Wales are classed as “truly” vacant – is contributing to inflated property prices and widespread homelessness.

Over the last decade, the Vale of Glamorgan has had the highest number of new builds per capita, with a total of 5560 dwellings completed. Last year, 430 homes were built. Even so, homes in the Vale of Glamorgan are currently some of Wales's least affordable, costing 9.5 times their annual earnings. Council housing rents, meanwhile, are set to rise by 6.7% – above the rate of inflation and the maximum amount allowed by the Welsh government.

In the local authority of Rhondda Cynon Taf, where the number of new builds per capita completed over the last decade was the lowest (13.5 per 1000 inhabitants), it is estimated that a total of 745 extra units of affordable housing are needed per year between 2023 and 2028. Last year, just 200 new dwellings were completed.

Current new build targets may be ambitious, but they must be met if Wales is to overcome its housing crisis.