Cash-strapped executive could transfer 93,000 homes to one association
Commission sets out NIHE’s options
The largest housing association in the UK could be formed under proposals to overhaul the provision of social housing in Northern Ireland.
A report has suggested the Northern Ireland Housing Executive could transfer all its 93,000 homes to a single housing association. That association would then be responsible for more stock than all other registered social landlords in Northern Ireland, which own or manage 30,000 homes between them. The report also suggests the homes could be split between different associations.
The Commission on the Future for Housing in Northern Ireland published its interim findings last week. The report addresses the serious shortfall in funding for improvements faced by the NIHE. In September, the Northern Ireland Housing Council said falling capital receipts left a £200 million hole in the executive’s finances.
Stock transfer was one option mooted to enable substantial borrowing. The authors said: ‘The transfer of NIHE housing stock to a non-public body, perhaps a new housing association, or an existing organisation or several existing associations - would give the organisation additional financial freedoms.’
Other options include increasing the NIHE’s capacity to borrow, re-profiling debt, self-financing, pursuing leasing as an alternative to traditional new build, and rent convergence.
Professor Paddy Gray from the University of Ulster said the report was ‘excellent’, but did not go far enough in exploring new ways of housing supply, such as the private rented sector.
He agreed NIHE needed new funding options. ‘I believe that they should be freed up to borrow more money,’ he said. ‘My main worry would be that a housing association created through stock transfer of all NIHE homes would dwarf the other housing associations.’
A spokesperson for the NIHE said: ‘We welcome the findings from the commission as a basis for debate and the housing executive will further discuss this at a housing forum in December before responding to the recommendations.’
Lord Richard Best, chair of the commission, said: ‘The commission hopes to facilitate a vision for the future of housing; to help citizens of Northern Ireland to be real beneficiaries of devolution, in terms of housing outcomes.’
Key recommendations
- A single housing and communities strategy
- A ‘Communities Unit’ liaising between departments whose decisions affect housing
- A positive relationship between land-use planning and housing
- Improve regulation and introduce a housing ombudsman
- Housing associations to become larger scale providers
- Greater use of private rented sector
- Develop strategic function of NIHE
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