Extra £20m for social housing in Northern Ireland welcomed, but CIH says “significant gap” remains

The Chartered Institute of Housing Northern Ireland has welcomed the allocation of an extra £20m for new build social housing, while warning that “a significant funding gap” remains.

In the mini-budget on Monday, the Northern Ireland Executive allocated £20m for new build social housing and £10m towards discretionary support and the Supporting People programme, as well as for homelessness interventions.

In April’s capital budget, the Department for Communities (DfC) saw its capital budget cut by 38%, from £216m to £133m.

The capital budget is earmarked for investments in projects like housing development. The CIH Northern Ireland described the budget cut as a “devastating blow” which could result in 600 fewer social homes being built this year.

The country needs to build 2,200 social homes per year to meet demand.

In June, the DfC committee reported that funding would only allow for a maximum of 400 social housing starts this year, representing a 73% decrease in starts.

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The Northern Ireland Federation of Housing Associations has said it expects the additional funding to increase the number of new social homes built this year to just over 500.

In 2022/23, the social housing development programme (SHDP), managed by the Northern Ireland housing executive reported 1,956 starts.

In the same period, there were 1,449 SHDP completions.

Director of CIH Northern Ireland, Justin Cartwright said: “We welcome the recognition that the Department for Communities requires additional funding to address the pressing needs in Northern Ireland’s communities.

“The allocation of £20 million for new social housing is a step in the right direction, and the investment in safe cladding is essential for the well-being of residents.

“The additional £10 million boost to discretionary support, Supporting People and homelessness interventions will offer a lifeline to those experiencing hardship and ensure vital services are available to people who rely on them.”

He added that “while these funds are appreciated, it’s important to acknowledge that the Department for Communities continues to face a significant funding gap relative to the scale of the challenges at hand.

“The initial budget allocation, and now this monitoring round, proportionally disadvantage the department, making it difficult to adequately address the urgent need for new homes and comprehensive support services.

“We urge a continued focus on equitable funding for the Department for Communities to ensure that all the people of Northern Ireland have access to safe, affordable housing and the support they need to thrive.”