Welsh government should ‘fully realise’ potential of existing dwellings to boost social housing supply, thinktank says

There are many opportunities for social landlords in Wales to acquire existing dwellings, the thinktank said, with over 50,000 residential sales every year.

It said there is potential to purchase dwellings already being marketed, as well as actively approaching current owners with the option to sell.

Based on analysis of residential transactions between July 2024 and June 2025, the thinktank said that if all properties purchased by private landlords or for second homes or holiday lets were instead acquired by social landlords, that could total an additional 7,480 homes per year.

Previous research by the Bevan Foundation has also estimated that more than 1,300 homes could be provided through the redevelopment of unused faith-owned spaces.

The thinktank said the benefits of this approach include delivering homes more quickly with potential cost savings, highlighting that one in every 14 households in Wales is now on a housing waiting list, with thousands living in temporary accommodation.

It also outlined the “significant” barriers to tenure change and repurposing, but argued that these are “not insurmountable”. 

“There are clear steps [that] the next Welsh government could take to improve both the financial and specialist support required,” the Bevan Foundation said. 

One such barrier is the “policy conflict between aspirational, zero-carbon standards for any homes brought into the social housing stock and the need to boost supply”.

The report continued: “It is right to ensure that tenants have the guarantee of a good-quality home, but we must be pragmatic and led by what tenants need and want. 

“Current standards are driving up costs and making many existing dwellings unsuitable for acquisition – including former social homes of the same design and layout as those already owned by social landlords.”

The thinktank said that calls for flexibility or a lowering of standards for acquisition have been met with the Welsh government saying that it does not want “to create two-tiers of accommodation standards”.

“We would counter this argument by making the case that temporary accommodation could itself be regarded as a ‘second’ tier of accommodation,” it added.

The Bevan Foundation called on the Welsh government to conduct a review of the Welsh Housing Quality Standard (WHQS) to “establish the elements which prevent tenure change” and “provide pragmatic flexibility”.

In particular, the thinktank recommended a “critical review” of the merits of requiring all social homes to meet an Energy Performance Certificate (EPC) A rating.

On funding, the report said: “Distinct and enhanced funding is needed for social housing schemes which make use of existing dwellings and buildings.

“This should clearly recognise the wider benefits and cover additional costs.”

It also said a Welsh government funding package is needed to increase capacity for empty homes and building work at local authority level.

In its recommendations to government, the Bevan Foundation said the Transitional Accommodation Capital Programme (TACP) funding requirement that a dwelling is sold after 10 years if it does not meet the WHQS “needs greater flexibility”.

The TACP is the Welsh government’s fund to boost housing supply through acquisitions, conversions and refurbishments of void properties.

In response to the report, the Welsh government said it is “determined to use every tool available to ensure that everyone in Wales has access to a safe, secure and affordable home”.

The spokesperson continued: “We have backed this ambition with more than £2bn this Senedd term, helping to deliver some of the highest levels of additional social housing in almost 20 years.

“We are also already taking steps to turn existing dwellings and buildings into social homes including through the Social Housing Grant and Transitional Accommodation Capital Programmes, and we continue to work closely with social landlords and local authorities to explore every avenue to increase the supply of social homes.

“We recognise that empty properties are a wasted resource in our communities. That is why we have given local authorities increased powers to address high levels of second homes and empty properties, and why we provide support through our funding programmes to bring empty properties back into use.”