Local Government is committed to working with the new Welsh Government to achieve:
- Increased investment in the supply of new affordable housing to address the lack of supply being delivered by the market recognising the strategic leadership role of local authorities as they work with RSL’s, developers and lenders to explore new models of delivery and financing;
- An end to the payment to the Treasury of rents paid by council tenants in Wales;
- Improvements in the quality of existing private rented property through improved support and appropriate regulation, and increase supply through attracting institutional investment into the sector;
- More innovative use of available funding to support the continued successful implementation of Housing Renewal;
- Recognition of the increasing need for housing adaptations and Disabled Facilities Grants which support independent living and reduce demands on the NHS;
- Better integration of housing, social care and health services in addressing the housing needs of older people;
- Sufficient resource to match any change in homelessness legislation; and
- Implementation of the Supporting People Review recommendations to improve the effectiveness of services and outcomes achieved.
Background:
Good quality affordable housing is fundamental to the health and well being of individuals and communities and is key to our ability to address a wide range of priorities including social inclusion, economic prosperity, educational achievement, social justice, reducing our carbon foot print and community safety.
The crisis in housing supply continues and deepens since the collapse of the banking and finance markets in 2008. Construction rates and mortgage approvals continue to be a fraction of what they were and homelessness is steadily increasing. The investment in social housing will be sharply curtailed following the cuts in capital expenditure.
In this challenging new era local government, in its strategic housing role, has a critical part to play in addressing housing needs and aspirations. Local government and the Welsh Government must work with stakeholders from across the housing market, whether they are RSL’s, private developers, private landlords, investors and lenders to address these challenges. These include a growing challenge in terms of housing for older people where there is a need to ensure that its older citizens live in comfort and security and as independently as their health allows.
It is well evidenced that given long term demographic trends Wales will need more homes. The challenge is to work towards that even as market conditions work in the opposite direction. Local government will consider, with the Welsh Government, the potential for local government to use its resources to improve access to affordable housing.
Additional investment is desperately needed to increase the supply of new affordable homes, but the reality is that the majority of housing need will have to be met by using existing dwellings. We must therefore make best use of housing in all sectors of the market to provide high quality, affordable and sustainable homes in communities where people want to live.
A good quality well managed private and intermediate rented sector potentially has a vital role to play in preventing homelessness and meeting housing need in Wales. This sector currently only provides 12% of homes in Wales but with additional institutional investment, an appropriate regulatory framework and support for landlords, the sector could play an increased and significant role.
The National Housing Strategy (2009), the Essex Review on Affordable Housing (2008) and the Supporting People Review (2010) offer an invaluable opportunity to make a real impact on the new and significant housing challenges that lie ahead. The ability of local government and other stakeholders to grasp this opportunity and work strategically and innovatively will be critical to our ability to make a real impact on housing in Wales.
All of these objectives would be more readily achieved if the UK Government would agree to end the arrangement whereby a proportion of the rent paid by council tenants is transferred to the Treasury. This is entirely unjustified and Welsh local government will continue to work with the Welsh Government to expose this iniquity and require the UK Government to act.