Welsh Development Quality Requirements (WDQR) 2021: integrated impact assessment

Background

Until October 2021 Affordable housing schemes built using Social Housing Grant or provided through s106 planning agreements were required to meet Welsh Government “Development Quality Requirements” (DQR) 2005. The Independent Review of Affordable Housing Supply 2019 made 22 key recommendations. Recommendation 3 stated that “Welsh Government should develop new consolidated and simplified standards for new build grant funded and S106 homes. The new standards should be easier to use and should not have conflicting requirements. The new standards should concentrate on minimum space standards, including storage inside and outside”.

Welsh Government prepared a draft standard called “Beautiful Homes and Spaces” (BHS) which responded to recommendation 3 of the Independent Review of Affordable Housing Supply. BHS included guidance on the use of Modern Methods of Construction (MMC) and encouraged the utilisation of a “circular economy” and other low carbon initiatives to help Wales meet its carbon reduction targets.

Following a full consultation in 2020, BHS was amended changing the name to “Welsh Development Quality Requirements 2021”, subtitled “Creating Beautiful Homes and Places” (WDQR 2021). Other changes included more emphasis on the importance of healthy homes, wellbeing, mental health, cultural suitability, place making, ecology and sustainability.

In July 2021, the standard was published and superseded the previous version from 2005 (which was subject to several updates and associated explanatory circulars). WDQR 2021 became mandatory for affordable housing schemes from 1 October 2021.

It has been agreed that the standard will be reviewed every two years.

In 2023 officials reviewed WDQR 2021 in operation and concluded that the standard did not need to be substantially changed to maintain policy aims at that time. However, questions in relation to the application of the standard arose which have been addressed in the publication of the WDQR 2021 Frequently Asked Question (FAQ) Addendum December 2023.

The next review of the standard will be undertaken in 2025.

In preparing the standard, consideration has been given to the application of the five ways of working in the Well-being of Future Generations (Wales) Act 2015 as follows;

Long term

The Welsh Government Future Trends Report 2021 identifies key future social, economic, environmental and cultural trends for Wales. The standard will influence most of the six themes of the report.

The population growth in Wales is projected to increase over the next 20 years putting increased demands for the delivery of more homes. There is concern about the quality of homes currently being provided across all sectors in Wales and the adoption of the standard addresses these concerns and drives up standards. There is projected to be a significant increase in older persons, increasing the demand for the provision of accessible homes, and particularly the provision of homes suitable for occupation throughout extended lifespans. Also, the impacts of the Covid crisis have placed more emphasis on the importance of space standards for home working and associated family needs.

The standard will meet the challenges for accessibility in general need homes through the implementation of Lifetime Homes design principles, alongside other “best practice” procedures to encourage high quality housing through good architecture.

Prevention

It is widely recognised that the provision of good quality housing will have a positive effect on the health and well-being of people living in their homes The standard also mitigates environmental damage through the encouragement of a “Circular Economy” and other low carbon measures to help Wales meet its carbon reduction targets.

Integration

Increasing housing supply and raising the quality of new homes is a key policy for Welsh Government. Investment in housing provides support to the Welsh economy in terms of maintaining and supporting jobs in the construction industry and the supply chain. This contributes to the “tackling poverty” agenda in terms of providing employment and training opportunities. The procurement of contracts enables the benefits of our investment to remain in Wales and be maximised in our communities. Jobs created by housing development should provide employment for many of those who are unemployed in the construction workforce making a significant positive impact on their mental and physical well-being (the health impacts of unemployment being well documented), reducing benefit expenditure, help to tackle homelessness and boosts opportunities for apprenticeships and training.

The standard underpins the key Welsh Government target for this term of government which is to deliver 20,000 additional low carbon homes for rent in the social sector.

The standard has been drafted in the spirit of Prosperity for All: economic action plan, taking due regard of the national strategy and to the commitments of “Taking Wales Forward” setting out a platform for delivery of good quality homes for the future.

Collaboration and Involvement

A review of the previous DQR (2005) was undertaken in 2017, which included widespread stakeholder consultations. The Independent Review of Affordable Housing Supply panel also reviewed the 2005 standard and consulted on its recommendations before publishing their final report in April 2019. The current standard responded to stakeholder feedback and the recommendations of the 2019 review as they relate to housing quality.

Furthermore, a full consultation during 2020 on a draft standard (previously referenced as BHS) was encouraging with 77 responders including a wide range of stakeholders from the housing sector. There was significant support for the standard but over a third of the responses raised concerns worthy of further consideration and proposed amendments to the draft standard. There was a great deal of interest in accessibility (Lifetime Homes), space standards and low carbon design.

In addition to the above referenced “five ways of working” within the “Well-being of Future Generations (Wales) Act 2015”, consideration was given to the following:

Impact

The argument for the proposals is that the housing standard for new homes had become obsolete and needed to be reviewed in the light of future trends and evolving Welsh Government policy. There was widespread support for the provision of a housing quality standard within the Social Housing sector.

A key recommendation of the Independent Review of Affordable Housing Supply (2019) is that Welsh Government should set a long-term goal by 2025 at the latest to have the same standard for all homes irrespective of tenure. The private house building sector currently does not have a similar housing quality standard and the impact of the new standard is significant and encourages all housing developers to make significant and improved quality changes in particular space standards, in the provision of housing for sale.

Costs and Savings

There are no direct financial implications, as the financial impact of design requirements will be contained within current and proposed budgets. Acceptable Cost Guidance (ACGs) will be adapted where necessary to contribute towards any additional costs incurred by building to the WDQR 2021 standard in the usual way. In the short term, the costs of building homes in new low carbon ways will potentially increase cost per home as Welsh supply chains grow and adapt to opportunities of a green economy. Higher costs in return for higher standards have always been anticipated and factored into programmes for government.

Mechanism

No new legislation is proposed.

8.1 How have people most likely to be affected by the proposal been involved in developing it?

The development of “WDQR 2021” has included full consultation with stakeholders both at the specific review of the Development Quality Requirements (DQR 2005) in 2017, during the various consultation stages associated with the Independent Review of Affordable Housing Supply (2019) and most notably through a full consultation on BHS in 2020. 

We are satisfied that the proposals are in keeping with the Well-being of Future Generations (Wales) Act 2015 and Welsh Government’s commitments to involving people, including parents representing children, people with protected characteristics and all other people affected by the proposals.

8.2 What are the most significant impacts, positive and negative?

WDQR 2021 has replaced the “Development Quality Requirements” (DQR) published in 2005. The standard (WDQR 2021) expects high quality design to deliver spacious, visually attractive, energy efficient, low carbon homes.

The standard underpins the key Welsh Government commitment to provide more low carbon affordable homes for rent. The standard has been drafted in the spirit of “Prosperity for All”, taking due regard of the national strategy and to the commitments of “Taking Wales Forward” setting out a platform for delivery of good quality homes for the future.

8.3 In light of the impacts identified, how will the proposal:

• maximise contribution to our well-being objectives and the seven well-being goals; and/or,

• avoid, reduce or mitigate any negative impacts?

The population growth in Wales is projected to increase putting increased demands for the delivery of more homes. There is concern about the quality of homes currently being provided across all sectors in Wales and the adoption of the standard will help to address these concerns. There is projected to be a significant increase in elderly persons, increasing the demand for the provision of accessible homes, and particularly the provision of homes suitable for occupation throughout extended lifespans.

The standard will meet the challenges for accessibility in new general need affordable homes through the implementation of Lifetime Homes design principles, alongside other “best practice” procedures to encourage high quality housing through good architecture and “best practice”.

8.4 How will the impact of the proposal be monitored and evaluated as it progresses and when it concludes?

The standard will be regularly reviewed as necessitated by changes in policy to take account of feedback from housing quality reviews of grant funded projects.

The next proposed review date will be 2025 linked to Building Regulations Approved Document L: conservation of fuel and power 2025 review.