Northern Ireland

Housing assocations calls for additional Westminster funding to be ring-fenced

The north could be set to receive additional funding as a result of Labour’s housing plans in England

View of Belfast City, Northern Ireland. The scene is of a built up urban landscape on a sunny day, featuring both commercial and residential districts, focusing on the rows and rows of Terrace houses. Cavehill and tall chimney can be seen in the background.
NIFHA calls for ring fencing of additional housing funding (Getty/Getty Images)

Housing associations are calling for additional funding received as a result of Labour’s housing plans in England to be ring fenced for social housing in the north.

It follows a commitment by the new Labour government to “turbo-charge the building of houses” to meet their manifesto commitment to build 1.5 million new homes in England over the next parliament.

Stormont’s major source of funds is the “block grant” it receives from the Treasury every year. Additional spending on public services in England means an equivalent amount is added to Stormont’s budget.

The Northern Ireland Federation of Housing Associations (NIFHA) has written to government officials in Westminster and Stormont calling for any additional funding received as a consequence of UK Government investment in social housing to be used to help build additional homes across Northern Ireland.

Seamus Leheny, NIFHA Chief Executive said: “Right now we have more than 47,000 on the housing waiting list, yet the budget for social housing new build this year will only see less than 600 new homes.

“That is a staggering gap, and unless we see real action to ensure both the social housing budget and the challenges to development are addressed that gap will grow further.

“The commitments that the new Labour government are making around housing are encouraging, and show a real commitment to ensuring that more homes are built. As this policy progresses in England, we want to ensure that it can also benefit families here.

“This is why we are calling for any additional funding which is allocated to the Executive through the Barnett formula as a result of UK Government investment in social housing should be ring fenced for social housing in NI.”

Funding allocated to Stormont through the Barnett consequential is not ring-fenced and previous allocations relating to a social housing retrofitting programme in England were absorbed into Stormont’s overall budget with no similar investment made in the north.

Mr Leheny added that the NIFHA is aware of the “financial pressures” facing departments but said that housing cannot be ignored and should be “given greater recognition”.

“House building has both social and economic benefits, and in Northern Ireland social housing development is key for the construction industry. We will continue to press this issue with the communities minister, the finance minister and the deputy prime minister (Angela Rayner who is secretary of state for housing) ,” he added.