Northern Ireland

Significant fall in budget for maintaining social housing flagged up in new report

Spending on maintaining Housing Executive homes fell from £178m in 2018/19 to £135m in 2020/21, according to the UK Housing Review.
Spending on maintaining Housing Executive homes fell from £178m in 2018/19 to £135m in 2020/21, according to the UK Housing Review.

SPENDING on improving and maintaining social housing in the north has fallen significantly in recent years, according to new analysis.

The latest UK Housing Review by the Chartered Institute of Housing (CIH) found that spending on maintaining the Housing Executive’s 85,000 residential properties fell from £178 million in 2018/19 to £135m in 2020/21.

The report warned that structural funding problems continue to hinder the Housing Executive’s ability to invest in its existing stock.

The review said that capital investment in new social and affordable housing had steadily increased by almost £43m since 2012, rising to £132m last year.

But despite that rising spend, the number of social homes built annually here – averaging around 1,500 per year – has fallen short of the 2,000 homes the Housing Executive says are needed.

The north’s public housing authority has not built houses for almost two decades, with housing associations taking on the role.

In November, Communities Minister Carál Ní Chuilín announced a massive shake-up of the Northern Ireland Housing Executive.

It will see the housing authority split in two, with its landlord division transformed into an independent co-operative body, enabling it to borrow money and start building houses again.

The Minister said that change was needed to increase the supply of social homes here.

She also said that giving the landlord arm borrowing powers could resolve the underspend in improving and maintaining the existing housing stock.

Speaking in November, Ms Ní Chuilín said analysis carried out in 2018 found that the landlord side needed to invest around £7.1bn in the Housing Executive’s 85,000 homes over the next 30 years if they are to remain in decent condition.

She said £3bn was required over the next 11 years, adding: "The Housing Executive can only afford about half of this requirement."

One of the review’s main authors, John Perry said: “The announcement to reform the Housing Executive is a welcome indication of progress in addressing a thorny issue, but the proposal raises several questions in its turn.

“Experience in the rest of the UK has shown that, even where substantial backlogs of work need to be addressed, tenant support may be difficult to achieve,” he said.

“There are also important questions around what the financial and governance arrangements will be, which will undoubtedly influence the outcome.”

CIH director in the north, Justin Cartwright added: “The fact that a direction of travel has been identified for the Housing Executive shows apparent willingness to face what has been a difficult political issue.

“It is important that a long-term future for the organisation, its stock and its service to tenants, now takes specific shape within a reasonable timescale."