Next steps
Housing reform is moving forward in Northern Ireland
STRATEGY
Image: Derry (Istock)
Ben Collins
Chief executive, NIFHA (Northern Ireland Federation of Housing Associations)
NIFHA welcomes the wide-ranging housing proposals announced by the Northern Ireland Communities Minister at the start of November. These include an announcement that the Northern Ireland Housing Executive (NIHE) will be reformed. What are the key points and why?
First, the plans outlined for the NIHE are a necessary step to enable the 85,000-home landlord to secure the required investment to refurbish its existing stock (see box). Homes are a key foundation stone for society, as the quality of home has a significant impact on the mental and physical wellbeing of those who live within them. It is crucial that the NIHE is able to address its historic underinvestment and to ensure that its tenants can live in good-quality homes over the long term.
NIHE stock investment needs (2018)
- 85,000 homes
- £7.1 billion investment needed over 30 years
- £3 billion of this over next 11 years
- NIHE could afford half of this
Source: Department for Communities
Rathcoole housing estate in Newtownabby, County Antrim (Istock)
More social homes
We agree that our region needs to build more social homes with a mixed-tenure approach to address the increasing numbers of people in housing stress (see box). Housing associations are at the forefront of increasing the size and quality of social housing across Northern Ireland. Their ability to match the funding received from the government with private finance allows housing associations to build twice as many homes as would otherwise be possible.
Housing stress in Northern Ireland
The number of households in Northern Ireland on the social housing waiting list with an acute need for a home:
13,042 (2002/03)
29,539 (Sept, 2020)
Source: Department for Communities
Making affordable rents work
As the driver of new-build social and affordable homes, our members are particularly happy at the minister's commitment to increasing the budget and to implementing policy changes to support new-build homes. To implement the minister’s agenda there will need to be a continued ability to set rents at an affordable level, to enable the housing sector to pay back borrowing, to invest in existing stock and to provide tenant support.
The Northern Ireland Executive has previously stated that the construction of new-build housing will be key to the region’s economic recovery from the adverse effects of the COVID-19 pandemic. As a sector, we want to respond to the growing numbers of people in urgent need of a home and to play our part in economic recovery. Research has previously shown that the construction of new social homes in Northern Ireland has an economic multiplier effect of around £1 billion for the regional economy, when the impact on the wider construction industry and suppliers is taken into account.
We will work with the minister and the NIHE on the implementation of the allocations review. Reform must better facilitate delivering sustainable tenancies and balanced communities. We look forward to working with Minister Ní Chuilín, her department, the NIHE and the wider construction industry on delivering the new homes and the associated economic boost Northern Ireland needs in this difficult period.
While these are challenging times with the uncertainty caused by Brexit and the pandemic, we will continue to work in partnership with the Northern Ireland Executive and others organisations which have a role in delivering and maintaining homes, as well as supporting tenants and continuing our focus on community investment.
