# Welsh councils finances and housing

> Live situation record from CLSTR: https://clstr.news/situations/wales-local-council-planning-approvals
> Updated: 2026-09-02T07:20:23.000Z. Sources: 18. Developments: 14.

Since July 2026, Powys County Council has focused on addressing housing shortages and financial pressures through various initiatives. The council is advancing a modular housing scheme at County Hall, Llandrindod Wells, to provide self-contained temporary homes for 31 households in emergency accommodation. Recent developments include public consultations for seven single-storey modular units on a brownfield site at County Hall. While intended for homeless accommodation, the proposal has faced local concern regarding its proximity to Ysgol Cefnllys primary school, with some residents and the Llandrindod Wells Town Council citing a lack of detailed public information.

In August 2026, the council appointed Morganstone Ltd to build 16 energy-efficient one-bedroom homes at the Ael-Y-Bryn/Pen-Y-Bryn site in Ystradgynlais. This project, part-funded by the Welsh Government, aims to replace outdated flats and support net-zero goals. Simultaneously, Powys is consulting on a potential Council Tax premium for long-term empty homes, considering a stepped increase up to the maximum 300% to encourage the return of vacant properties to use.

By September 2026, Powys County Council reported slow progress in meeting its financial targets, having delivered £703,000 of a £15.428 million savings target as of late June. However, finance officials anticipate ending the 2026/27 financial year with a £2.12 million surplus, supported by a £4 million risk budget intended to mitigate pressures in Highways and Social Services.

At the national level, the Welsh Government has extended the Help to Buy Wales, Help to Stay Wales, and Empty Homes Grant programmes until 31 March 2027. In Caerphilly, a reserved-matters application for a 44-home development near Trinant Sports and Social Club is undergoing public consultation, despite concerns regarding its greenfield location near an animal sanctuary.

## Timeline

### 2026-09-02: Welsh councils face budget pressures and funding disputes

Welsh councils face financial pressures, with Powys reporting slow progress on savings targets and Wrexham calling for the release of £12 million in promised school funding for additional learning needs.

2 sources. https://clstr.news/cluster/welsh-councils-face-budget-pressures-and-funding-disputes

### 2026-08-21: Powys County Council proposes modular homeless housing in Llandrindod Wells

Powys County Council is holding consultations on plans to build seven modular homeless accommodation units on a brownfield site near County Hall in Llandrindod Wells.

2 sources. https://clstr.news/cluster/powys-county-council-proposes-modular-homeless-housing-in-llandrindod-wells

### 2026-08-07: Wales council approves new affordable housing developments in Powys and Caerphilly

Wales council moves ahead with 16 energy‑efficient homes in Ystradgynlais and a 44‑home development in Trinant, Caerphilly, to boost affordable housing.

3 sources. https://clstr.news/cluster/wales-council-approves-new-affordable-housing-developments-in-powys-and-caerphilly

### 2026-08-04: Welsh Government extends housing aid schemes as Powys Council seeks input on empty‑home tax

Powys Council consults on a stepped empty‑home tax premium, while the Welsh Government extends key housing aid schemes to 2027, supporting hundreds of households and renovations.

2 sources. https://clstr.news/cluster/welsh-government-extends-housing-aid-schemes-as-powys-council-seeks-input-on-emptyhome-tax

### 2026-07-27: Powys County Council secures £3 million for residents and unveils modular housing plan

Powys County Council secured nearly £3 million for residents and announced a modular housing project to assist 31 emergency‑housing households, aiming to reduce placement costs and improve local support.

4 sources. https://clstr.news/cluster/powys-county-council-secures-3-million-for-residents-and-unveils-modular-housing-plan

### 2026-07-20: Pembrokeshire Council pushes review of 182‑day holiday rental tax and expands Homebuy affordable scheme

Pembrokeshire Council sought a review of the 182‑day holiday‑rental tax rule and approved an expansion of its Homebuy affordable‑housing scheme after a successful pilot.

3 sources. https://clstr.news/cluster/pembrokeshire-council-pushes-review-of-182day-holiday-rental-tax-and-expands-homebuy-affordable-sche

### 2026-07-17: Powys Council faces high agency costs and grant‑reliance worries

Powys Council has spent >£11 m on supply‑teacher agencies in four years and relies on last‑minute grant funding, prompting councillors to demand clearer budgeting and cost cuts.

3 sources. https://clstr.news/cluster/powys-council-faces-high-agency-costs-and-grantreliance-worries

### 2026-07-13: Powys County Council grapples with grant‑funding reliance and primary school closure plan

Powys County Council faces criticism over reliance on one‑off grant funding and a contentious plan to close Gladestry primary school, sparking concerns about fiscal stability and community impact.

3 sources. https://clstr.news/cluster/powys-county-council-grapples-with-grantfunding-reliance-and-primary-school-closure-plan

### 2026-07-08: Pembrokeshire County Council spends £6.5 m on housing purchases and logs £5.6 m budget surplus

Pembrokeshire County Council spent £6.5 m on 17 housing purchases and recorded a £5.6 m budget underspend, directing the surplus to initiative projects and second‑home tax refunds.

2 sources. https://clstr.news/cluster/pembrokeshire-county-council-spends-65-m-on-housing-purchases-and-logs-56-m-budget-surplus

### 2026-07-07: Powys County Council posts £1.2 bn surplus and adopts long‑term growth strategy

Powys Council reports a £1.2 bn surplus, increased reserves and a new 2026‑2040 economic strategy targeting seven growth sectors.

2 sources. https://clstr.news/cluster/powys-county-council-posts-12-bn-surplus-and-adopts-longterm-growth-strategy

### 2026-07-07: Powys Council stalls church holiday let and weighs school closure

Powys Council rejected a church holiday‑let over River Wye pollution concerns and is set to begin a consultation that could close the county’s smallest school, Gladestry, by 2027.

4 sources. https://clstr.news/cluster/powys-council-stalls-church-holiday-let-and-weighs-school-closure

### 2026-07-06: Pembrokeshire Council launches council tax premium consultation and reports £6.5 m housing purchases

Pembrokeshire Council seeks views on new council‑tax premiums for second homes and empty properties, and announces £6.5 m worth of housing acquisitions funded largely by grants.

2 sources. https://clstr.news/cluster/pembrokeshire-council-launches-council-tax-premium-consultation-and-reports-65-m-housing-purchases

### 2026-07-05: Pembrokeshire County Council approves two rural development schemes

Pembrokeshire County Council approved a One Planet Development farm project and a barn conversion for camping and festivals, both at its June 30 meeting.

2 sources. https://clstr.news/cluster/pembrokeshire-county-council-approves-two-rural-development-schemes

### 2026-06-11: Powys County Council greenlights two housing projects in Churchstoke and Llandrindod Wells

Powys County Council approved a 38‑home council estate in Churchstoke and a three‑home development for a cancer charity in Llandrindod Wells, despite objections on drainage and site density.

2 sources. https://clstr.news/cluster/powys-county-council-greenlights-two-housing-projects-in-churchstoke-and-llandrindod-wells

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Cite as: Welsh councils finances and housing. CLSTR, https://clstr.news/situations/wales-local-council-planning-approvals