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Home Builders Federation @homebuildersfed.bsky.social · 1h

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Increasing Housing Supply in Wales report

Increasing Housing Supply in Wales outlines the home building industry's asks of the next Welsh Government.

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Home Builders Federation @homebuildersfed.bsky.social · 1h

➡️ On average over the last five years, local authorities delivered 64% of their LDP housing requirements.

The next Welsh Government must make urgent interventions to address the main causes of undersupply and to support more investment in home building in Wales.

Recommendations 👇

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Home Builders Federation @homebuildersfed.bsky.social · 1h

➡️ There was a shortfall of around 6,300 homes in Wales in 2023/24 compared to if every local authority had delivered 100% of its housing requirement.

➡️ Local authorities with an up-to-date LDP achieved 58% of their annual housing requirement in 2023/24, versus 34% for those without one.

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Home Builders Federation @homebuildersfed.bsky.social · 1h

Just one local authority in Wales delivered its annual housing requirement in 2023/24
On average, local authorities in the country delivered just 51% of their requirement.

We found... 👇

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Home Builders Federation @homebuildersfed.bsky.social · 4h

This morning, our Planning and Policy Advisor for HBF Wales, Mark Harris, took part in a roundtable with Jayne Bryant MS, Cabinet Secretary for Housing and Local Government, on key issues for SME home builders, including
🔺Access to deliverable land
🔺Planning system challenges
🔺Access to finance

Home Builders Federation @homebuildersfed.bsky.social · 10h

We also urge Government to consider allowing the use of Homes England grant funding on Section 106 Affordable Homes for a time-limited period.

This would provide vital short-term support and help prevent the loss of much-needed Affordable Housing.

Home Builders Federation @homebuildersfed.bsky.social · 10h

This approach would help ensure that homes continue to be built while providing reassurance that, if an RP cannot be found, Affordable Homes could be delivered through an alternative tenure or, as a last resort, a payment in lieu made to the Local Planning Authority.

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Home Builders Federation @homebuildersfed.bsky.social · 10h

We are calling on Government to encourage Local Authorities to adopt a more flexible approach to the use of cascade mechanisms in Section 106 agreements, and engaging constructively in renegotiations when a Registered Provider cannot be secured.

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Home Builders Federation @homebuildersfed.bsky.social · 10h

The shortage of Registered Providers in the market is becoming a growing concern, leaving Affordable Homes standing empty and stalling progress.

Unless action is taken, the gap between housing supply and the government’s ambitious targets will only continue to widen.

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Home Builders Federation @homebuildersfed.bsky.social · 10h

“Government’s social and Affordable Housing announcements were a welcome step to giving Registered Providers confidence to plan long term, but they are doing little to ease the immediate constraints of delivering Affordable Housing through Section 106 agreements” Neil Jefferson, Chief Executive, HBF

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Home Builders Federation @homebuildersfed.bsky.social · 1d

(You can view this and past briefings on our website, too
👉 buff.ly/4EcGSNs)

Home Builders Federation @homebuildersfed.bsky.social · 1d

These amendments will be considered when the Bill returns to the Lords for Report Stage on 20 October.

The Bill will then return to the House of Commons to approve the amendments, before the Bill can become law - which is expected later this year.

Members, a full briefing is waiting in your inbox

Quick links

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Home Builders Federation @homebuildersfed.bsky.social · 1d

🔸…And changes to prevent planning permissions from being timed out for approved major housing schemes facing lengthy judicial reviews.

The Planning and Infrastructure Bill is currently in the House of Lords.

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Home Builders Federation @homebuildersfed.bsky.social · 1d

MHCLG has released details of amendments to the Planning and Infrastructure Bill, including 👇

🔸New powers for ministers to issue ‘holding directions’ to stop councils refusing planning permission while they consider using ‘call-in’ powers to decide whether or not to approve applications…

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Home Builders Federation @homebuildersfed.bsky.social · 1d

Read our report – Planning for Small sites – for more insight on challenges facing SME home builders 👇

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Home Builders Federation @homebuildersfed.bsky.social · 1d

And our research shows that it takes an average of 30 weeks from application to committee decision and a further 21 weeks to secure formal permission on small sites.

Applications decided at committee take 53 weeks on average…

… that’s 10 weeks longer than delegated decisions.

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Home Builders Federation @homebuildersfed.bsky.social · 1d

Timescales facing planning applications for small sites are unreasonable and unmanageable.

As it stands, around 94% of applications currently miss the statutory determination deadline.

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Home Builders Federation @homebuildersfed.bsky.social · 2d

The growing list of constraints facing today’s SME home builders must be addressed if Government is to meet its housing ambitions.

Read our report – Planning for Small sites – for more insight on challenges facing SME home builders and how they can be addressed. 👇
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Home Builders Federation @homebuildersfed.bsky.social · 2d

❌Increasing taxation and regulatory costs potentially adding £10,000s of cost per home
❌Challenges and delays with Biodiversity Net Gain implementation
❌Nutrient neutrality requiring expensive strategic mitigation schemes or land for offsetting

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Home Builders Federation @homebuildersfed.bsky.social · 2d

❌Time taken to finalise Section 106 agreements
❌Lack of standardisation in drafting agreements
❌Average negotiation timescales exceeding 12 months
❌Delays in responses from statutory consultees

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Home Builders Federation @homebuildersfed.bsky.social · 3d

Reduced availability of housing of all tenures, prolonging the housing crisis, and deepening housing inequality.

It also places significant pressure on SME home builders.

With capital tied up in uncontracted units, cash flow is jeopardised, hindering investment in future phases or projects.

Home Builders Federation @homebuildersfed.bsky.social · 3d

Without a commitment from Registered Providers to take Section 106 Affordable Homes on, housing delivery grounds to a halt as developments are stalled, phased differently or even rendered unviable altogether.

Meanwhile, in some instances, Affordable Homes are left standing empty.

The result? 👇

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Home Builders Federation @homebuildersfed.bsky.social · 3d

An estimated 900 completed Affordable Homes are currently standing empty due to a lack of commitment from social housing providers to take them on, with thousands more at risk.

Our analysis has found that around 8,500 Affordable Homes due to be built in the next 12 months are currently uncontracted

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Home Builders Federation @homebuildersfed.bsky.social · 6d

Planning for Small Sites can be downloaded from our website
www.hbf.co.uk/research-ins...

This report has been delivered in partnership with Quantum Development Finance based on Lichfields analysis.

Home Builders Federation @homebuildersfed.bsky.social · 6d

…Meanwhile, the proportion of total planning permissions granted on sites of 150 units or fewer, plummeted to 6-8%...

From 20% in 2008.

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