Plan for 20,000 Welsh social homes 'hanging by thread'

A target to build 20,000 social homes is "hanging by a thread" because of the state of the economy, Labour's housing minister has said.

Julie James said the cost of living crisis - which she blamed on the Tories - and problems in the construction industry were contributing to a "perfect storm of misery".

But the Conservatives' Janet Finch-Saunders told her: "This is your mess."

The pledge had been in Welsh Labour's 2021 election manifesto.

It promised to build 20,000 low-carbon homes that would be let by councils and housing association.

Mrs Finch-Saunders said social landlords feared having to make cuts if they cannot put up their rent in line with inflation.

That would have a big impact on their ability to build homes, leaving Labour's target "hanging by a thread", she said.

Ms James said she faced a "very difficult decision indeed" over whether to cap social housing rents.

Social landlords needed the income from rent to meet the "increasing demand caused by the number of people unable to keep a roof over their head because of the cost of living crisis".

Meanwhile, the building industry faced global supply chain problems and a shortage of staff.

"The idea that there is some silver bullet to fix this which isn't related to the mess the economy is currently in is, I'm sorry, just complete pie in the sky," she said.

"So it is hanging by a thread our ability to build 20,000 low-carbon homes.

"We are almost certainly facing the worst cuts we have ever seen right across public services."

But Ms Finch-Saunders said: "Stop looking to the UK government to blame them. This is your mess.

"Devolution under a Welsh Labour government over the last 23 years has denied many in my community a home and a roof above their head."

Later, Ms James said soaring inflation had increased costs.

"So the money that we've put aside, despite being record levels, is of course eroded by inflation which has gone into double figures," she said.