Welsh Conservatives blame Labour for continued shortfall in new homes

THE LATEST housing figures from the Welsh Government have revealed a sharp drop in house building across Wales, deepening concerns over what opposition politicians are calling a “self-made housing crisis”.

Data covering the period from October to December 2024 shows that only 1,116 new dwellings were started in Wales — a 27% decrease compared to the same period the previous year. Completions also dropped, with just 1,336 new homes completed, a 12% fall from the previous year.

The figures have sparked renewed criticism from the Welsh Conservatives, who accuse the Labour-led Welsh Government of failing to prioritise housing policy effectively.

Laura Anne Jones MS, the Welsh Conservative Shadow Cabinet Secretary for Housing & Local Government, said the latest numbers highlighted a deepening problem.

“These latest figures highlight Labour’s self-made housing crisis in Wales,” she said.

“Labour simply aren’t building enough suitable homes and hardworking people are struggling to get on the housing ladder. Their obsession with second homes and their toxic tourism tax are the wrong priorities for Wales. The Welsh Conservatives would ensure more homes are built and empty homes are brought back into use.”

Drop across all sectors

The Welsh Government’s statistical bulletin confirms a decrease in house building across all tenures — private sector, social housing, and local authority-led construction.

The biggest fall was seen in the private sector, which accounted for 62% of all new dwelling completions but saw a 15% year-on-year decrease in total numbers. Social housing completions fell by 6%, and the small number of homes built by local authorities (only 62 units) represented a 13% fall on the same period the year before.

The slowdown comes amid wider concerns about housing affordability, population growth, and the availability of construction labour and materials.

Tourism tax and second homes policy under fire

The Welsh Conservatives have linked the slowdown to what they describe as Labour’s “misguided” focus on issues like second homes and tourism levies. The proposed visitor levy — sometimes referred to as a “tourism tax” — would allow local authorities to charge overnight visitors in a bid to generate revenue for communities affected by high levels of tourism.

Critics say the move could damage the rural economy and does nothing to address the underlying issue of housing supply.

In contrast, Labour ministers argue the measures are designed to help address the affordability crisis in areas where second home ownership has driven up house prices and left local people priced out.

Julie James MS, Minister for Climate Change with responsibility for housing, has previously defended the Welsh Government’s approach, saying efforts are underway to bring empty properties back into use and expand affordable housing through innovative schemes.

Rural communities hit hardest

The figures are particularly concerning for rural areas such as Pembrokeshire, Gwynedd, and Ceredigion, where housing demand remains high but new developments are often held back by planning delays and community opposition.

With fewer than 4,800 homes started across Wales in the whole of 2024, housing charities have also raised concerns that the government is unlikely to meet its target of delivering 20,000 new low-carbon homes for rent during this Senedd term.

Shelter Cymru and other housing organisations have repeatedly warned of a worsening crisis in homelessness and temporary accommodation, as local councils struggle to keep pace with rising demand.

Political pressure mounting

With the next Senedd elections still two years away, housing is likely to remain a key political battleground.

The Welsh Conservatives are calling for:

• A national strategy to bring empty homes back into use
• A review of planning laws to streamline development approvals
• Greater investment in infrastructure to support new housing schemes

Meanwhile, Labour will continue to argue that their policies are geared toward long-term sustainability and fairness — especially in communities where local people have been priced out by the second home market.

But with house building in decline and demand on the rise, pressure is growing on ministers in Cardiff Bay to act swiftly before the housing gap becomes unbridgeable.

MARK DRAKEFORD warned Wales could miss out on up to £65m to cover the increased costs of employer national insurance contributions in the public sector.

The finance secretary confirmed that Rachel Reeves, the UK chancellor, has decided to distribute national insurance funding via the Barnett formula.

“I think that she is wrong to do that,” he said. “And I have said so in direct terms to the chief secretary of the treasury … as did the finance ministers for Scotland and Northern Ireland.”

He stressed: “We should have been compensated for the actual costs, not a Barnett share.”

Prof Drakeford told the Senedd: “The result is that we are now, it could be as much as £65m short of what we estimate public services in Wales – within the chancellor’s own definition – will have to pay.”

Labour’s Alun Davies described the population-based Barnett formula, which was devised in the late 1970s as a temporary measure, as not fit for purpose.

During finance questions on April 2, he told the Senedd: “It also ensures that Wales does not get a fair crack of the whip when it comes to the distribution of funding across the UK.”

The Blaenau Gwent Senedd member voiced concerns about the UK treasury using the formula to compensate public sector employers for national insurance costs from April.

Mr Davies said this would break an agreement that where one government takes a decision that has a negative impact on another, it should provide the costs in full.

Prof Drakeford agreed with his Labour colleague and Joel Barnett, who “many times” has described the formula he devised as no longer fit for purpose.

Holding a copy of the statement of funding policy referred to by Mr Davies, he said talks with the UK treasury on the matter continue and the figures will not be confirmed until late spring.

He said: “Paragraph 10 on page 13 says … ‘when decisions are taken by any of the administrations which leads to additional costs of another of the other administrations, the body whose decision leads to the additional cost will meet that cost’.

“Well, that suggests to me that when the UK Government made its decision that it should reimburse Welsh public services for the actual costs of the increase in NI contributions – not a Barnett share of the costs in England.”

The Conservatives’ Janet Finch-Saunders supported reforming funding to be based on need rather than population, calling for help for care homes with the costs of NI increases.

Prof Drakeford reiterated his position that the Welsh budget should not be used to plug gaps created by UK Government policies.

He emphasised the real issue is that the formula can only be reformed if every part of the UK agrees, “and some parts do rather well out of the Barnett formula”.

“The pressure on them to seek reform is not the same,” he said.

Describing national insurance as a “shocking” example, Adam Price said: “The Barnett formula is not just clearly unfair, it’s also inconsistently applied and lacks transparency.”

The Plaid Cymru politician warned: “It’s not working at any level.”

Prof Drakeford called for an independent oversight body: “We cannot go on, I believe, indefinitely having the [UK] treasury, the judge, jury and, occasionally, the executioner when it comes to the Barnett formula.”

Questioning the first minister a day earlier, Mr Davies argued reform of the Barnett formula is one of the most important questions facing Wales.

He said: “The real question facing this government and this parliament is protecting and investing in the future of our people and our communities. We can’t do that if Wales is the worst-funded country in the United Kingdom.”

Eluned Morgan responded: “I couldn’t agree more and that’s why I have made it a point of bringing up these issues at every opportunity I have had with the prime minister.”

Andrew Jeffreys, director of the Welsh treasury, last week reiterated the Welsh Government position that spending should be distributed based on need rather than the Barnett formula.

But he told a Senedd committee on Friday: “The UK Government doesn’t seem interested in any substantial reform to the way that system works.”

WEST WALES could have a new water park attraction in proposals being mooted by the award-winning Moody Cow Farm Shop and Welsh Kitchen, near Aberaeron, Ceredigion.

The award-winning Moody Cow Farm Shop and Welsh Kitchen, along with Bargoed Farm, is owned by Chris and Geraint Thomas.

The couple moved to the derelict farm in 2010 after previously diversifying their cattle farm in the Brecon Beacons, but then losing everything due to legal issues.

They completely transformed the site before opening Bargoed Farm Campsite in 2018 and using wooden hot tubs as a unique way to bring in customers.

Chris and Geraint then launched The Moody Cow Farm Shop and Welsh Kitchen, serving up a wide range of Welsh dishes created using local ingredients.

Over the years, the attraction has expanded, recently gaining permission for a trampoline park on-site, called the ‘Bouncing Bull,’ and, back in 2023, was given planning permission expand its on-site caravan park with new tourer pitches with hot tubs, and glamping accommodation.

Bargoed Farm has now launched a public consultation on proposals to expand the attraction with a water park and leisure facility.

Details of exactly what is proposed have not been released yet.

The consultation, available online through surveymonkey or from Bargoed Farm, says: “Bargoed Farm is planning an exciting new indoor and outdoor waterpark and leisure facility, designed to provide year-round water-based activities for visitors and the local community.

“This new development will include indoor and outdoor swimming pools, thrilling water slides, a dedicated training pool, a children’s splash area, and a warm activity pool, ensuring that people of all ages and abilities can enjoy high-quality aquatic experiences in all seasons.

“Our aim is to create a premier leisure attraction in Mid Wales, offering family fun, fitness, and relaxation, while also supporting the local economy by drawing more visitors to the area.

“As we progress with the planning and development of this project, we are committed to ensuring that the views and needs of both local residents and visitors are fully considered. This survey has been created to gather your feedback on how you would use the facility, what features are most important to you, and how we can make it as accessible and enjoyable as possible.

“Your insights will directly influence the final design of the waterpark, helping us to shape it into a valuable asset for the local community and a must-visit destination for tourists.

“By taking part, you are helping to ensure that this development is designed in a way that best serves those who will use it most.

“We greatly appreciate your time in completing this survey.

“Whether you are a local resident looking for improved swimming facilities, a visitor who would love a high-quality waterpark in the region, or a business owner interested in how this could boost the local economy, your feedback is essential in shaping the future of this exciting new project.”

Bargoed Farm, which publicised the proposals on March 31/April 1, has confirmed the scheme was not an April Fools.