Welsh affordable housing delivery reached a record 3,865 additional units in 2025-26, according to Welsh Government statistics released on 27 October 2026. That was 222 units, or 6%, above the previous year, and the highest annual total since the series began in 2007-08. It is a noteworthy rise, but the total does not mean that 3,865 newly built homes were completed.
The official figures cover new-build homes alongside acquisitions, conversions and properties leased for more than a year. They also expose a weaker part of the planning pipeline: 823 affordable units were delivered through planning obligations, down 7%, while the number receiving detailed permission through those arrangements fell to 793. Permissions and completions are different measures and must not be added together.
The Welsh affordable housing figures matter to planners, developers and housing providers beyond the immediate headline. They show where grant-backed delivery has grown, why section 106 contributions are not producing the same momentum, and how different definitions can distort progress towards government targets. I would use the official breakdown before drawing conclusions about the effect of planning policy alone.
Why Welsh affordable housing reached a record
The Welsh Government’s statistical release says the total was the highest total since data was first recorded in 2007 to 2008
. It measures additional affordable housing under Technical Advice Note 2, rather than every new dwelling or every change in the net housing stock. Homes lost through subsequent sales or demolitions are not subtracted from this annual additions figure.
Registered social landlords supplied 2,859 units, or 74% of the total, while local authorities accounted for another 954 and other providers 52. The local authority figure was itself a record in this series. These provider totals include homes brought into affordable use through acquisition or conversion, so a comparison with new-build completion statistics needs care.
About 69% of reported affordable provision was newly built, excluding units from other providers where that split is unavailable. Of the housing delivered by registered social landlords, 2,217 units were new builds; for councils, just 423 of the 954 units were newly constructed. The rest of the Welsh affordable housing total remains important to people needing housing, but it has different implications for land supply and the construction industry.
Section 106 delivery is heading the other way
One of the most useful findings for planning professionals is that Welsh affordable housing delivered through planning obligations fell to 823 units in 2025-26, a 7% reduction on the previous year. That was 21% of total affordable provision, compared with 24% a year earlier. The wider delivery record is therefore not evidence that market-led section 106 contributions have suddenly become stronger.
The figures also distinguish affordable units granted detailed planning permission through obligations or relevant planning conditions. That permission measure declined slightly to 793, with 727 in local authority areas outside national parks and 66 within national parks. A permission granted this year may take years to produce an occupied home, while a home completed this year may arise from a much older permission.
The Welsh Government explains that obligations are negotiated alongside development proposals to secure affordable housing consistent with local policy and development viability. Planning Geek’s section 106 agreement guide explains the legal mechanism, but the relevant Welsh development plan policies and guidance must be applied when assessing a site in Wales.
This is also a reminder not to count the same dwelling twice. An affordable unit delivered through a section 106 obligation may also be on an affordable housing exception site. The statistical release explicitly warns against adding those two categories together. The planning system’s role should be assessed against its own measures, not an inflated sum of overlapping pathways.
Rural exceptions and the local picture
Detailed permissions for affordable housing on exception sites reached 421 units, the highest recorded annual figure. Actual delivery on local authority exception sites was much smaller at 126 units, spread between Powys, the Isle of Anglesey and Gwynedd. National parks reported another 14 delivered units on exception sites. Permissions may therefore signal a future pipeline, not homes ready for occupation now.
An exception site can help meet local housing needs on land that would not normally be allocated for general housing. That does not create a blanket permission to build wherever there is demand. The applicable Welsh development plan policy, local need, access, design and any other material considerations still matter. Planning Geek also explains the general concept in its rural exception sites guide.
Local outcomes varied sharply. Cardiff delivered 709 affordable units, up from 544, and Swansea increased from 230 to 358. The Vale of Glamorgan declined from 316 to 144 and Flintshire from 213 to 110. By delivery rate per 10,000 households, Pembrokeshire led at 52.7, while Bridgend recorded 8.3. Absolute totals and rates answer different questions.
Grant funding matters more than the headline suggests
Capital grant funding supported 83% of Welsh affordable housing delivered in 2025-26, compared with 79% the previous year. Just 663 units were recorded without such funding. That matters when assessing whether a scheme can be delivered: a planning allocation or signed obligation does not necessarily substitute for a viable funding package and an affordable housing provider.
Most of the units were intended for rent. Across the reported housing with known tenure, 94% was for social or intermediate rent, with smaller proportions in shared ownership and shared equity. Registered social landlords alone delivered 2,439 social-rented units, accounting for 85% of their provision. These tenure categories should not be treated as interchangeable in an appraisal or local housing needs assessment.
The figures also recorded 614 affordable units on public sector land, 16% of all provision. Council land supplied 399 of those units. Public ownership may help with assembly or cost, but it does not remove the need for permission, infrastructure, appropriate housing standards and a credible delivery programme.
What the government housing targets actually measure
The previous Welsh Government commitment concerned 20,000 additional low-carbon homes for rent in the social sector from April 2021 to April 2026. The published annual release records 17,236 qualifying units to March 2026 when the relevant funded void properties are included. The target period runs a month beyond the annual figures, and its definition differs from the 3,865-unit Technical Advice Note 2 headline.
A new administration has committed to 20,000 additional social homes by 2030. Its definition focuses on homes remaining available for social or intermediate rent, including some acquisitions and community-led delivery. Shared ownership and shared equity homes are excluded from that new target. The Welsh Government says future releases will report progress, so this year’s general affordable provision total should not be presented as the first instalment of the new commitment.
That distinction is important for anyone quoting Welsh affordable housing statistics in a local plan examination, planning committee report or investment prospectus. Affordable housing, social housing, new-build completions and net additional dwellings are not identical measurements. The official quality report sets out the data collection and its limitations.
Will the next year bring more homes?
Local authority returns indicate that 4,034 additional affordable units were planned for delivery in 2026-27. More recent programme management information suggests a range of 4,500 to 4,850, including 1,636 reported as delivered by 30 September 2026. These forecasts use different collection methods and are not directly comparable with each other or with final annual statistics.
There is a useful warning in the numbers. Management information previously forecast 4,800 units for 2025-26, around 24% above the eventual official total of 3,865. Delays, funding changes, construction progress and acquisitions can all alter the final result. Planned units are therefore a pipeline indicator rather than an undertaking that a stated number will be occupied by a particular date.
For developers, the practical point is to track detailed permissions, grant availability, obligations and actual completions separately. Welsh affordable housing has reached a record, but weaker planning-obligation delivery sits alongside that achievement. The 27 October Welsh Government release and its linked StatsWales tables provide the authoritative figures for comparisons and local breakdowns.
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