Housing Executive to start building again as number in need spirals

Tuesday, 3 November 2020 11:54

By Bob Huggins

By Michael McHugh, PA

The Housing Executive is to start building homes again for the first time in decades as the number of people in need spirals.

The public authority will be given new borrowing powers to update existing deteriorated stock and finance major new construction projects, the Communities Minister said.

It is part of a significant shake-up of Northern Ireland’s largest social housing landlord.

Minister Caral Ni Chuilin warned that the number of people sleeping on sofas and in hostels while awaiting a decent home is “out of control”.

She told the Assembly: “We need to build more social homes. We need to sort out the long-term future of the Housing Executive.

“We need to make sure it can repair its homes, regenerate its estates and start building again. We need to get the Housing Executive building again.”

Around 1,500 social homes have been constructed each year over the last seven years but that has not kept pace with demand.

The number of people with an acute need on the waiting list has risen by on average 1,000 a year.

The Housing Executive is responsible for 85,000 homes.

It has two functions – as a landlord and as a regional housing authority, managing the waiting list.

Ms Ni Chuilin is proposing to place those roles with separate organisations in order to allow the Housing Executive to borrow based on its revenue streams rather than adding to Stormont debt.

While it remains classified as a quasi-public corporation, as a landlord it cannot borrow.

The minister said: “I plan to change the classification of the Housing Executive landlord to a ‘mutual’ or co-operative designation so that it may borrow and secure a sustainable future for all of its 85,000 homes and provides security for current tenants and future generations.”

She wants to expand the existing stock while opening a new route to home ownership for those who can afford to do so.

A significant number of properties have been sold off to tenants in recent years, working against efforts to expand the portfolio.

Ms Ni Chuilin added that a new system known as intermediate rent homes can be a stepping stone for some into low-cost home-ownership or can provide a better, more affordable rental solution for others.

About 40% of all housing benefit is paid to private landlords.

More families with children are renting privately.

The minister pledged to bring forward legislation to improve the safety, security and quality of the sector, extending the notice to quit before people can be evicted to something like six months.

“I accept that landlords run businesses, but I will not let them exploit tenants, especially given that so much of the rent they receive comes straight from taxpayers,” she said.

“It doesn’t matter if you rent a social house or from a private landlord, I will bring forward proposals to ensure your rent is fair and secures you a good home.”

Professor Peter Roberts, chair of the Housing Executive, said the proposals offered significant opportunities.

“It is our view the minister’s proposal will unlock investment that will benefit our tenants – as well as the local economy – and enable the Housing Executive to be even more ambitious in shaping and managing the places and communities we serve.

“Alongside this, being able to build new homes again gives the Housing Executive the opportunity to tackle growing housing need and address homelessness across Northern Ireland.”

The Northern Ireland Federation of Housing Associations said it was crucial that the Housing Executive is able to address historic underinvestment and ensure tenants can live in good-quality homes over the long term.

Chief executive Ben Collins said: “We agree that our region needs to build more social homes with a mixed tenure approach, to address the increasing numbers in housing stress.

“Housing associations have been at the forefront of increasing the size and quality of social housing across Northern Ireland, and their ability to match the funding we receive from government with private finance, allows us to build twice as many homes as would otherwise be possible.”