Investment anticipated
NIFHA is glad to learn the DSD proposes to seek permission from DFP for housing associations to redeem public loans taken out under an earlier financial regime. The intention would be to replace them by private loans carrying lower rates.
A key part of this request is that housing associations would not be required to pay a prohibitively expensive penalty for redeeming public sector loans earlier than planned. Our members believe re-financing on more favourable terms will generate useful long-term savings which can be channelled to new-build and/or maintenance of homes.
Taking into account the multiplier effect whereby each pound invested in housing should create £2.09 of economic output1- more than most other sectors – this will stimulate Northern Ireland’s economy in the short-term and bolster the economic prospects which "remain muted" according to the Department of Enterprise, Trade and Investment.
NIFHA’s Chief Executive, Chris Williamson, commented:
“There is approximately £11m outstanding from the loans and we understand the Department for Social Development is currently developing a business case for approval by the Department of Finance and Personnel regarding the required conditions of any proposal. The housing association movement looks forward to a positive outcome from this initiative.”
This year’s budget for social housing development programme is much lower than last year’s and will be further reduced in the next two years.
Ends
Further Information
Chris Williamson
Chief Executive
T: 028 9023 0446 M: 078 6646 6119
1Investment in housing and its contribution to economic growth. Report prepared for Shelter by Vicky Pryce, Dan Corry and Mark Beatson FTI Consulting (Oct 2011).
Notes for editors
- Confirmation was contained within a response to written question AQW 3917/11-15 published 4 Nov.
- There are 31 registered Housing Associations in NI, all of which are members of NIFHA.
- Housing associations manage nearly 36,000 units of accommodation - over a quarter of all social housing in NI.
- Since 1998 housing associations have provided virtually all new social housing in NI.
- In the financial year 2010-11 housing associations achieved a record 2,418 starts.
- Collectively, since 1991 housing associations have taken out over £626.2million of private finance to assist with social house building.
- 21,000 households in NI have been assisted with purchasing their own homes through Co-ownership. In the financial year 2010-11 Co-ownership had 492 in contract to purchase and 121 homes where clients stair-cased to full ownership.
