CIH Cymru concerned over housing funding in Welsh draft budget

The Welsh government has published its outline draft budget for 2026/27.

Overall resource funding for housing and local government is to increase 2.21%, while capital funding for both areas will increase by 2%. Total indicative funding for housing and local government will be £6.98bn.

The specific allocation for housing won’t be confirmed until 3 November, but membership body CIH Cymru is concerned by the “inflationary” increase, believing more funding is needed to meet housing need.

A spokesperson said: “Welsh government’s 2026/27 draft budget [is] welcome but doesn’t reflect the housing emergency.”

CIH Cymru’s ‘Plan for Housing in Wales’ manifesto points out that in 2023/24 there were more than 13,000 households made homeless, the highest level since the Housing (Wales) Act 2014 came into force.

CIH said that in July 2025 there were 10,941 individuals living in temporary accommodation and 161 sleeping on our streets.

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It said the total level of social housing grant provided in the current Senedd term averages £347 million per year, 40% lower than the £646 million per annum CIH Cymru has calculated will be needed to meet housing adequacy in the next Senedd term.

Matt Dicks, national director of CIH Cymru, said: “We welcome the indicative budget allocation of £6.98 billion for housing and local government, which includes £1.29 billion for capital funding.

“Yet it is unclear what proportion will be for housing-related expenditure and how much is for local government. There is a need to ensure that the allocation for housing-related expenditure is reflective of the deepening housing emergency in Wales and the level of investment needed to effectively tackle it.”