policy
Welsh Government defers council tax revaluation as HBF flags planning condition delays
Legislation to push the revaluation into the next Senedd term is due next month, while new HBF research shows only half of planning condition applications are decided on time.
The Welsh Government will bring forward legislation next month to defer its planned council tax revaluation to the next Senedd term, after estimating that support for households facing higher bills could have cost up to £80m in the first year.
The decision was among the items in the Home Builders Federation's (HBF) Wales industry news summary for 23 October, alongside the trade body's own research on planning condition delays and new figures on Welsh house prices.
According to the Welsh Government, council tax bands in Wales are still based on property values from 2003. Its research estimates that about a quarter of households could have seen their band go up under a revaluation.
Elin Jones, Cabinet Minister for Finance, said: "This isn't about giving up on council tax reform or retreating from fairness." She said some people are still paying council tax based on what their home was worth more than 20 years ago, and that the government is focused on bringing down NHS waiting lists.
Planning conditions
Separately, the HBF said only 50.8% of applications to discharge planning conditions are determined within the statutory eight-week timeframe. The research, carried out with Paragon Bank Development Finance, was based on a Freedom of Information exercise to local planning authorities.
The HBF's figures show on-time performance falling from 55.6% in 2023/24 to 51.8% in 2024/25.
| Period | Applications determined within eight weeks |
|---|---|
| 2023/24 | 55.6% |
| 2024/25 | 51.8% |
The statutory timeframe for determining applications to discharge conditions is 56 days, the HBF said. The median determination time in 2025/26 was 70 days, 25% longer than the target.
Performance varied widely between councils. Some authorities determined more than 75% of discharge applications on time, while others met the deadline in just 18% of cases. The HBF said 90% of council planning departments are now operating below full capacity.
Neil Jefferson, chief executive of the HBF, said: "These delays create unnecessary cost, uncertainty and risk for home builders, particularly smaller businesses without the reserves to absorb them."
The HBF said the delays can hold up the delivery of affordable homes secured through planning obligations. Neal Moy, managing director at Paragon Development Finance, said in the HBF's release that Paragon works with hundreds of SME housebuilders nationwide.
Welsh house prices
Principality Building Society's Wales House Price Index puts the average price of a home bought with a mortgage in Wales at £258,000. The index covers all 22 Welsh local authorities and is updated quarterly from CACI data. Andy Mottram, head of product, lending at Principality, said the Welsh housing market was waking up.
The official UK House Price Index, published by HM Land Registry and the Office for National Statistics, gives a different figure on a different basis. It put average house prices in Wales at £216,000 in August 2026, a provisional estimate, up 3.1% over 12 months. The monthly change for Wales in August was 1.0%.
What happens next
The Welsh Government said legislation to defer the revaluation to the next Senedd term will be introduced next month.
On the record: Home Builders Federation
Sources
- Home Builders Federation (opens in a new tab) (accessed 2026-10-30)
- Welsh Government (opens in a new tab) (accessed 2026-10-30)
- Home Builders Federation (opens in a new tab) (accessed 2026-10-30)
- Principality Building Society (opens in a new tab) (accessed 2026-10-30)
- HM Land Registry / Office for National Statistics (GOV.UK) (opens in a new tab) (accessed 2026-10-30)
This story was researched from the primary sources above and checked against them before publication. Spotted an error? Tell us and we will correct it promptly.
