Business

8,400 new-build starts last year - 'but not enough social housing'

NOT enough new social homes are currently being built in Northern Ireland to keep up with demand, a housing body claims.

Figures in the latest Department for Communities housing bulletin show that in the January-March quarter, there was a total of 1,760 new dwelling starts - down 10.2 per cent on the same period a year earlier (1,960).

The number of private owner/speculative development new starts was 1,582, a decrease of 9.9 per cent year on year (1,756). For social housing, this figure was 178, down 12.7 per cent on the figure of 204 in 2018.

The figures for house completions were better, however, with 1,869 new dwelling completions in the period (up from 1,704), made up of 1,749 private developments (up 19.5 per cent year on year) and 120 social houses (less than half the previous year's figure of 241).

The number of new dwellings commenced in whole of 2018-19 (April to March) was 8,424, of which 89 per cent were private.

The number of homes completed over this period grew by 10 per cent on the previous year, continuing long-term growth.

Justin Cartwright, policy and engagement manager of the Chartered Institute of Housing (CIH) in Northern Ireland, described the annual figures as “welcome news”.

He said: “Official estimates suggest Northern Ireland needs around 7,200 homes each year to keep up with things like population growth and demolition of older housing. In our view this is a conservative figure, so it’s great to see almost 8,500 new homes started over the year, which is closer to the number we need.

“But housing supply remains an issue for lower income households and people who need social housing. Some 1,786 new social homes were provided over the period – an increase on the previous year. It’s welcome that social housing investment continues to be given relatively high priority in Northern Ireland.

“At the same time the number falls short of the 2,000 homes the Housing Executive says are needed. This number would be difficult to achieve in the current environment, due to budgeting and associated issues that have arisen from the political impasse.

“In addition to working in an environment of political uncertainty, social housing providers are working under the growing weight of welfare reform. Up to 34,000 Northern Ireland households will be hit by the bedroom tax in March next year risking rent arrears and therefore fewer social homes built, since rents go towards loan repayments for new housebuilding.”

Mr Cartwright added: “The lack of housing and social security policy development is worrying – we need an Executive to make the case for more social and affordable housing and to ensure that legislation, funding and support is in place to make it happen.”