Social Housing Allocations
Neil Morland
February 11, 2026

Reforming social housing allocations in Wales

The Welsh government has agreed to make positive significant changes to the way social housing is allocated in the nation. What lesson can other UK nations learn? And what does this mean for Welsh local authorities and registered social landlords?

The Homelessness & Social Housing Allocation (Wales) Bill was passed by the Senedd on 10 February 2026. Royal assent will very soon be given to make the Bill become an Act of parliament.

A lot of attention has (rightly) been on to Part 1 of the Bill, which concentrates on homelessness, which when introduced will give Wales a similar legal framework to that of Scotland, which affords more people, more rights to assistance, at an earlier stage, and for a longer period.

However, Part 2 of the Bill is equally important, as for the first time since devolution, the Welsh Government has reformed the way social housing is allocated and as result created a unique legislative framework that is distinct from other UK nations. Welsh assembly members, government ministers and civil servants should be congratulated for the work they’ve done to make this happen.

The Bill is very good. The new social allocation duties that require:

are all excellent and well drafted. It would be beneficial for this legislation to be extended to other UK nations.

The Bill when introduced, included a proposal that local authorities would be able to establish a qualification criterion for persons to be allocated social housing. This was subsequently removed from the Bill in the amended version that was published after stage two. This aspect of the Bill has been on statute in England since 2011. The vast majority of local authorities in England have not been challenged about qualification criteria. It is true, that some challenges have been made, and the courts have overturned some aspects of qualification criteria for a small number of local authorities. However, the courts hear far more challenges about the handling of applications or the prioritisation of applicants, and other aspects of housing allocation legislation then they do about qualification criteria. Establishing a qualification criteria changes housing allocation from a universal provision, akin to NHS healthcare which is available for everyone regardless of their social or economic circumstances, to a means tested provision, akin to welfare benefits. So, the key question is should social housing to be a universal provision that is available for everyone or a means tested provision that is available only for some people. In England the law defines social housing as homes available to rent a sub-market rates for people whose needs cannot be met by the commercial housing market (no similar definition exists in other UK nations). Therefore, given this definition, it appears that social housing has already been defined as it means tested provision and is no longer the universal offer for everyone in England. Consequently, it’s essential that English local authorities are able to decide a qualification criterion, so as to ensure that whoever is put on their housing register, is compatible with the legal definition of social housing.

Housing allocation law in England requires that the UK Armed Forces community, local authority tenants with a need to move for work, victims of domestic abuse and care leavers are all exempt from local connection criteria. This legislation could be extended to other UK nations, so these individuals are not disadvantaged when decisions are made about the prioritisation of applicants on the housing register.

The Act might have benefited from have including a section of legislation, already on statute in Scotland, concerning the handling of rent arrears from people making an application for an allocation of social housing. Scottish social housing allocations law, which applies equally to local authorities (but only those that retain stock, those that are transferred their stock are not obliged to hold a housing register in Scotland,) and Scottish registered social landlords, requires them to deal with application applications from people with rent arrears in the following fashion:

This legislation ensures consistency and fairness when dealing with applications from people with rent arrears. This aspect of Scottish social housing allocation law should be incorporated into social housing allocation law in other UK nations.

Scottish housing allocation law also requires local authorities and registered social landlords to consult with housing registered applicants, social housing tenants, and anyone else interested in the allocation of social housing before changing rules concerning the allocation of social housing. And that the consultation findings be published. This is much more robust than what is currently in social housing allocation law in other UK nations.

It’s significant that the Housing Act 1985, section 106, remains on statute and although it has been superseded for local authorities by duties set out in the Housing Act 1996 Part Six, the Housing Act 1985, section 106, remains on relevant for Welsh registered social landlords (and also for private registered providers in England). The text in the legislation uses of the unusual term housing authorities, but the 1985 Act clearly defines this term as meaning registered social landlords (and private registered providers). Therefore, registered social landlords continue to have a duty to:

It’s important to be clear that these legal duties continue to exist (as they have done for 40 years) and the Bill does not repeal this legislation. Therefore, even once the Bill has been implemented, Welsh registered social landlords will still be obliged to fulfil the requirements in section 106 of the Housing Act 1985. Therefore, the duty to require local authorities to establish a common housing register and the requirement for registered social landlords to offer accommodation to people from the common housing register will have to sit alongside the legislation in Housing Act 1985 section 106. This will allow registered social landlords to continue to hold separate rules to decide how people are prioritised for an allocation, even though they must make offers of housing from a common register. Registered social landlord could adopt common prioritisation rules with local authorities and should seriously consider doing so, as this makes things easier for everyone, especially housing register applicants.

There is an absence of statutory guidance or voluntary good practice available for registered social landlords, but this can be remedied. Now the Bill has been passed, joint statutory guidance on social housing allocations for local authorities and registered social landlords can be written. It would be hugely beneficial for this guidance to include up-to-date advice nomination agreements between local authorities and registered social landlords. New statutory guidance could also feature advice about:

The Bill marks an important and positive change to the way social housing is allocated in Wales. There is much that the governments for the other UK nations can learn from the Bill. It will now be important that for local authorities and registered social landlords to fully understand what’s required to successfully implement the Part 2 of the Bill.

To download and read a copy of the Bill, CLICK HERE.

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