Business

‘Alarming’ drop in housing completions in north so far this year

Water infrastructure issues taking their toll on residential development, according to CIS data

Berkeley Group has reported a drop in house completions (Alamy/PA)
A report by CIS says there has been an alarming drop in house completions in the north
By Gary McDonald

The acute housing crisis in the north shows no sign of abating following an “alarming” drop in completions so far in 2024, a new report reveals.

And according to Construction Information Services (CIS), it’s water infrastructure issues which are taking their toll on residential development.

Data from construction intelligence specialists CIS shows that in the first three quarters of this year, just 2,778 housing completions were recorded in the north - well below historical levels and just about half of the 2023 figure of 5,373. It is the fifth consecutive year of declining residential completions.

CIS commercial director Dave Thompson said: “NI Water, the public body that maintains our water supply and infrastructure, has said that limits to its funding means it can’t provide the infrastructure to support the strong demand for housing developments. We have seen the impact that these issues have had already this year, with significant reductions in housing activity.

There are no signs of an end to Northern Ireland’s acute housing crisis, with a new report showing significant declines in the numbers of year-on-year planning permission submissions, approvals and project commencements across the region
CIS commercial director Dave Thompson

“Key regions have been particularly affected in the first half of 2024. Belfast, one of the most critical areas for housing supply, had just 266 completions – well below the required levels to meet ongoing demand.

“And if this current pace continues for the remainder of 2024, it will mark another difficult year for the housing market and could impact home availability, particularly in key urban centres.”

He added: “These issues, largely driven by under-investment, have limited the region’s capacity to meet housing demand, particularly in high-demand regions like Belfast, Antrim and Newtownabbey.”

The CIS data also underscores a persistent gap between private and social housing completions - 5,509 private units completed compared to just 501 social units in the third quarter, which highlights the limited availability of affordable housing for lower-income groups.

Mr Thompson said: “Addressing the shortfall in both social and affordable housing is critical, particularly as demand for low-cost homes continues to rise. Without a greater emphasis on both of these areas, Northern Ireland will struggle to meet the current housing demand, particularly as economic pressures intensify.”

In the years preceding 2024, Northern Ireland saw the following completion figures:

  • 2020 - 6,415 units
  • 2021 - 7,416 units
  • 2022 - 6,838 units
  • 2023 - 5,373 units
  • 2024 (so far) - 2,778 units