Welsh Government, Affordable Housing Delivery Scheme

This proposed Welsh Government Affordable Housing Delivery Scheme, worth £5.53 billion, will combine existing schemes under a single umbrella and will provide for the development and acquisition of affordable housing in Wales. Local Authorities and Registered Social Landlords (RSLs) will be able to apply for funding in the form of a direct grant or a subsidised loan. The scheme will run from 20 March 2025 – 31 March 2031

Our key takeaways from the Subsidy Advice Unit (SAU) Report are as follows:

• Assessments should go into detail regarding processes used to limit the subsidy amount to the minimum necessary for the sub-schemes.
• Assessments should go into detail regarding criteria and processes used when permitting individual sub-schemes to exceed the Guidelines or viability gap caps or allowing subsidies to be granted retrospectively.
• Assessments should be clear which appraisal arrangements apply to which sub-schemes.
• Assessments should explicitly address how the nature of activities subsidised, and the timing of subsidy provision affect the competitive and investment impacts. They should also describe in detail the reporting, and monitoring and evaluation, processes.
• Assessments should discuss how decisions on the various subsidy characteristics mentioned in the Statutory Guidance could help minimise potential distortions to competition and investment.
• Assessments should demonstrate that the existence of social housing does not influence private sector rents, including in the temporary accommodation market, given the explicit aim that the scheme will reduce reliance on temporary accommodation.
• Assessments should consider the potential for affordable housing subsidies to crowd out private investment.
• Assessments should take a systematic approach to presenting how SPEI requirements (where applicable) are addressed in line with the Statutory Guidance.

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