Estate agents Savills has forecasted house growth of 18% in Wales over the next five years, which would make it one of the fastest growing markets in the UK.
In 2018/19, 2,592 new affordable homes were delivered, compared with 2,316 in 2017/18. The Welsh Government is said to expect to have completed around 3,569 affordable homes in 2019/20.
Despite the rise, it still falls 33% short of the requirement of 3,895 more affordable homes per year over the five years to March 2024.
The average annual requirement of 3,895 affordable homes over the next five years, set out by Government earlier this year, equates to 47% of new homes built between 2019 and 2024.
Commenting on the results, Caroline Jones, associate director at Savills said: “The value of residential property in Wales is fast catching up with the rest of the UK. The removal of the Severn Bridge tolls this time last year has already had an impact on prices in the south east of the country and this is likely to ripple out further in coming years.
“While this is good news for homeowners, it will push the limits of affordability for more households, making the requirement for affordable provision increasingly urgent.”
She added: “Whilst the target to develop is welcomed, as it should contribute to addressing the affordability issue, it undoubtedly puts pressure on providers to deliver. This new drive is also an opportunity for those in the sector to innovate and ultimately to provide the quality, as well as the volume of affordable stock we need.”