Extra funding to help tackle housing crisis

THE WELSH Labour Government has announced an additional £10 million investment in social housing, aiming to deliver more affordable homes for families across Wales.

The funding, which will support 16 housing schemes, is expected to deliver 238 homes before the end of the current Senedd term. It comes as part of the government’s wider commitment to tackling the housing crisis and providing opportunities for families struggling to secure affordable homes.

Record investment in housing

The Welsh Government has made housing a key priority, arguing that good quality, affordable homes are essential for improving health, education, and economic prospects. Ministers say they have already delivered nearly 9,000 affordable rental homes in the social sector since the start of this Senedd term, with further developments in the pipeline.

The latest investment is in addition to the £81 million allocated last year for new housing projects, bringing the total housing budget for 2025-2026 to £411 million. Ministers insist they are delivering “record levels” of investment in social housing.

Challenges remain

Despite the funding boost, the Welsh Government remains short of its ambitious target of delivering 20,000 low-carbon social homes for rent by 2026. Audit Wales has warned that between £580 million and £740 million in extra funding could be needed to meet the target. Rising construction costs, planning delays, and shortages in the building industry have also been cited as barriers to progress.

Political divide over housing

The announcement has sparked fresh debate over housing policy in Wales. Welsh Labour has accused opposition parties of failing to support efforts to increase social housing.

Jayne Bryant MS, Cabinet Secretary for Housing and Local Government, said:
“One of this Government’s key priorities is opportunity for every family. Investing in social housing reduces poverty, improves health, and helps drive economic growth. Good quality, affordable housing can transform lives, improving mental health and educational outcomes.”

She challenged opposition parties to back the investment, adding:
“We know opportunity starts at home. If Plaid Cymru and the Conservatives believe in opportunity for every family, they should vote for our Budget.”

However, opposition parties argue that the funding is insufficient given the scale of the crisis. The Conservatives have blamed rising housing costs on economic mismanagement, while Plaid Cymru has called for alternative approaches to tackling the shortfall in affordable homes.

Expert concerns

Housing campaigners and industry experts have welcomed the extra funding but warn that significant challenges remain. Some argue that a more detailed long-term housing strategy is needed to sustain progress beyond individual Senedd terms.

A spokesperson for Shelter Cymru said: “While additional investment is always welcome, the reality is that Wales faces a deepening housing crisis. More must be done to accelerate the delivery of affordable homes and tackle the root causes of housing inequality.”

With the next Senedd election approaching, housing is expected to remain a key battleground, with political parties setting out competing visions for tackling the crisis.