Welsh government’s 2026/27 draft budget welcome but doesn’t reflect the housing emergency, says CIH Cymru 

The Welsh government has published its outline draft budget for 2026/27, which outlined the main expenditure groups for 2026/27. 

Resource funding for housing and local government has seen an inflationary increase of 2.21, per cent and capital funding for housing and local government has seen an inflationary increase of two per cent.  

The total indicative funding for housing and local government in 2026/27 will be £6.98 billion to housing and local government, made up of £5.69 billion in resource funding and £1.29 capital funding.  

However, we won’t find out the specific allocation for housing until the Welsh government publishes departmental expenditure lines on 3 November. 

CIH Cymru would expect allocations to both capital and resource funding for housing to be in line with inflationary increases outlined above, but as we have stated in our 'Plan for Housing In Wales' manifesto and housing strategy, which we published last week to inform the housing debate ahead of next year’s Senedd elections, we need to substantially increase investment into housing beyond current levels. 

‘Deepening housing emergency’ 

Matt Dicks, national director of CIH Cymru, commented on the budget, saying: “Wales is in the midst of an ongoing structural and systemic housing emergency. Currently, 90,000 households representing 170,000 individuals including 34,000 children are waiting for a social home. In 2024/25, one in every hundred households became homeless and in July 2025 there were 10,941 individuals living in temporary accommodation and 161 people were sleeping on our streets.  

“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.   

“Housing should be a foundation mission of government. That is why in our Manifesto ‘A plan for housing in Wales’ CIH Cymru calls for the next government to enshrine the right of adequate housing into Welsh legislation. We must be ambitious and deliver the legislation needed, using it as the driver and mechanism through which we can ensure everyone in Wales can access a safe, suitable and affordable home ensuring housing is a foundation mission of government now and in the future.”

• For additional comments, interview arrangements or case studies please contact 07939302566 or cerys.clark@cih.org