The target is made up of 7,500 affordable homes - 1,000 more than the previous government's target - and 5,000 empty homes brought back into use through the Houses into Homes scheme launched earlier this year.
The 7,500 affordable homes will be delivered with a combination of subsidy from the Welsh Government and other housing providers using their own finance.
Measures to achieve this target include:
- Securing additional social housing grant (SHG) funding of £22M to bring the 2011-12 total to £97M.
- Supporting the development of a Welsh Housing Bond.
- Accelerating Land Release for housing.
- Supporting new models of development e.g. Ely Bridge.
- Developing new and innovative ways to access housing e.g. co-operative housing and mutual home ownership.
- Securing the best position to exit the Housing Revenue Account Subsidy system.
The White Paper, which will set out the Government’s proposals for new legislation and other, non-legislative action to help to meet housing need in Wales will be published next week.
Speaking at a Cardiff Community Housing Association development at Colchester Avenue, Cardiff, which was funded through the Welsh Government’s Social Housing Grant, the Minister said:
"A decent and safe home is a fundamental human right and increasing housing supply and choice is a key commitment as part of out Programme for Government. This target is a clear signal of our commitment to housing in Wales.
"The target will not be easy to achieve. However, it is vital that we provide these much needed homes which will not only satisfy people’s housing requirements but will also create jobs and help stimulate the economy.
"There is great pressure to provide affordable housing across Wales and we are aware that there is not enough to meet the need. At the same time as Welsh Government budgets are reducing, the level of housing need is increasing. It is therefore imperative that we make existing budgets stretch further. I want to secure alternative ways of bringing new money into the housing sector and also new approaches to housing, such as co-operative housing and innovations such as the Welsh Housing Partnership.
"A total of 12,500 homes is an ambitious goal, but one I believe is deliverable. To do this the Welsh Government, Local Authorities, Housing Associations and the private sector will all have to work together to attract funding from other sources and to achieve the best possible value for money in order to deliver much needed homes for the people of Wales.
"It is a tough challenge, but one I look forward to facing with the help of all our partners."