Demand for housing in Merthyr Tydfil remains heavily concentrated in one-bedroom accommodation, while there is also acute pressure for larger family homes requiring four or more bedrooms, a report has said.
The latest housing register and homelessness data show continued sustained demand pressures, increasing complexity of need, and a continued mismatch between housing supply and demand. As of August 4, 2026, there were 2,244 active applications on the housing register, with approximately one third assessed as being priority need.
Data highlights complexity of need
A report for the council's Thriving Merthyr Tydfil scrutiny committee said the data confirms increasing complexity of need, including rising numbers of applicants requiring adapted housing, alongside sustained use of 'homeless at home' arrangements reflecting insecure and often overcrowded living situations.
"These factors directly inform the need for clearer policy thresholds, improved prioritisation, and strengthened allocation of limited housing resources," the report said.
Proposed changes to allocations policy
The council is currently proposing changes to its allocation policy for community housing. Following the adoption of the current allocations policy in 2023, monitoring through the local housing panel and housing register data has identified areas where demand has continued, particularly for adapted accommodation and complex household needs.
In some cases, the existing banding structure did not sufficiently differentiate between general need and specialist need, creating operational pressure and reducing clarity for applicants and partners, the report said.
The current allocations policy introduced a needs-based banding system aligned with the council's rapid rehousing approach. Since implementation, monitoring by housing services and partner landlords has highlighted areas where greater clarity and stronger policy controls are required, particularly in relation to foster care, adoption and kinship care arrangements, adapted and accessible housing, overcrowding and unsuitable housing, insecure living arrangements, local lettings plans for new developments, governance and decision-making arrangements, and adult social services placements and care arrangements.
Policy gaps identified
The report said the 2023 policy established a strong needs-based framework but did not fully anticipate emerging pressure points affecting children's placements, specialist housing needs, and local lettings for new developments.
It said certain household groups, particularly those linked to fostering, adoption, kinship care, and children returning from care, were being assessed through discretionary routes rather than a clearly defined policy framework. Some priority categories, including overcrowding, insecure household arrangements, and property condition, lacked a sufficiently clear threshold, leading to inconsistent application and increased review.
The proposed changes to the policy include introducing a dedicated policy framework for foster care, adoption and kinship care with clear priority awards and governance arrangements; strengthening criteria, governance and review arrangements for local lettings plans; introducing clearer thresholds and evidential requirements for overcrowding and unsuitable housing; formalising assessment criteria, evidence requirements and review processes for homeless at home arrangements; introducing a new adapted housing band for verified adaptation needs; clarifying how education and schooling are considered when assessing housing offers and refusals; strengthening decision-making processes, review rights and recording requirements; and establishing a dedicated policy framework for adult social services placements and care arrangements.
Consultation and aims
The report said consultation and engagement have been carried out throughout the policy review process and fed into the proposed amendments.
"The council seeks to operate a clear, robust, and transparent allocations policy that is consistently applied, legally sound, and responsive to local housing pressures," the report said. "The revised policy is intended to support the effective use of limited community housing stock while ensuring that households with the most acute needs are prioritised appropriately."
It said the revised policy aims to prioritise households with the greatest housing need, support homelessness prevention and rapid rehousing objectives, improve consistency and transparency in decision-making, make best use of limited and specialist housing stock, support safeguarding responsibilities, and maintain public confidence in the allocations process.
