Welsh housebuilding figures increased by 11% in 2025/26, according to the latest Welsh Government housebuilding figures. However, delivery remains significantly below the level required to meet the country’s housing needs.
A total of 5,159 new homes were completed during the year, while around 4,800 new dwellings were started – a 12% increase on 2024/25.
Despite the year-on-year improvement, annual completions remain well below historic levels. An average of 8,558 homes were completed each year during the early 2000s, while the most recent peak was 6,900 homes in 2015/16.
The Welsh Government estimates that 8,700 new homes are needed annually until 2030 simply to keep pace with household growth. This means delivery would need to increase by around 70% from current levels to meet that requirement.
The latest figures also show that 79% of completions – equivalent to 4,064 homes – came through private enterprise, representing a 21% increase on the previous year. Registered social landlords and local authorities accounted for the remaining 21%, or 1,095 homes, down from 27% in 2024/25.
Most of the homes completed were houses or bungalows, accounting for 73% of total delivery, while flats made up the remaining 27%.
Despite the increase, 2025/26 completions were still around 15% below pre-pandemic levels, when 6,037 homes were completed in 2019/20. Overall delivery is also around 41% below the Welsh Government’s estimated annual requirement of 8,700 homes.
The Home Builders Federation (HBF) said the figures demonstrated the scale of the challenge facing Wales as it seeks to increase housing supply.
The organisation has called for an all-tenure housing delivery target that recognises the contribution of private, social and affordable housing; greater consideration of the impact of policy requirements on viability; up-to-date Local Development Plans across Wales; and increased investment in planning services to support faster decision-making.
The HBF said the homebuilding industry was ready to increase delivery, but that a more favourable policy and planning environment would be needed to unlock additional supply.
The figures underline the scale of the opportunity – and the challenge – for all parts of Wales’ housing sector, including smaller builders and developers. With delivery still substantially below identified need, increasing the number of viable sites coming forward and ensuring the planning system can support a wider range of development will be central to addressing the supply gap.
