Short-term gain will avoid long-term pain

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Stalling of social housing provision - the impact on Northern Ireland. The effects of the shortfall in capital expenditure on housing are alarming warns NIFHA.

The draft Budget is causing grave concern in the housing association movement. In a recent letter to all MLAs the Northern Ireland Federation of Housing Associations (NIFHA) is urging all Assembly members to back their call for an increase in funding for housing.

  • No new starts for social housing
  • 3,240 jobs in construction alone may be affected
  • Conservatively estimate £150m lost to the NI economy and £66.6m per annum being loss to the construction industry
  • 13 planned new supported housing schemes are at risk
  • Co-ownership housing is at risk
  • 36,182 are on the waiting list - this will rise

There is simply not enough capital allocation in the draft budget to turn Sir John Semple’s recommendation of building at least 10,000 new homes over the next five years into reality. A further worrying consequence of the draft budget’s figures is that NI Co-ownership Housing Association will be unable to help enough households into partial home ownership.

NIFHA’s Chief Executive, Chris Williamson commented:

“Right now housing associations can clinch realistic deals with landowners and developers to add to the social housing stock. However, the NI Housing Executive is having to apply the brakes to many proposed schemes because they may not be able to pay the grant contribution for them in the next financial year.”

He went on to say:

“This window of opportunity is rare but is being stymied by a real cash crisis. Housing associations need cash now to help avoid a nightmare scenario in which the shortage of social housing becomes worse instead of better.”

The effect of good quality affordable housing on society is clear. Decent housing contributes to good health and well-being, improved educational attainment and more community pride and self confidence. All of these benefits will underpin the NI Executive’s desire for increased economic prosperity and sustainability for Northern Ireland.

The draft Programme for Government promised to focus on affordable housing for all. The proposed selling of surplus government land and changes in planning which have been outlined to help make the promises a reality are medium to long-term initiatives. In the short-term, however,there is a period of transition for which real cash is needed.


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