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The future of housing in Northern Ireland

Jennie Donald reflects on the current challenges and opportunities facing the Northern Irish housing sector

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The future of housing in Northern Ireland, by Jennie Donald

This is my last article for Inside Housing as I will be leaving the Northern Ireland Federation of Housing Associations (NIFHA) and the housing sector next month for pastures and challenges new.

As I prepare to hand over to colleagues, I’ve been reflecting on where we are as a sector in Northern Ireland and the priorities for housing in the coming months.

In spite of the precarious political environment, from Brexit to the lack of a local Executive and Assembly, there is much to be positive about. I spent a day last week with senior officials from across government departments discussing the Programme for Government.

Despite the lack of an actual government and the programme remaining in draft, this is effectively the strategic framework for all policy and funding decisions to 2021. Housing is encompassed within two outcomes: caring for others and helping those in need, and as an indicator for connecting people and opportunities for infrastructure.


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The discussions around this second outcome and how it could be achieved were hugely encouraging. Stakeholders from transport, water, housing, utilities and consumer groups alongside policymakers from all government departments took a genuinely strategic view, setting aside our own areas of interest to look at infrastructure as an enabler, rather than seeing physical development as an outcome in its own right.

The focus on outcomes at the heart of the Programme for Government is at last embedded in the regulatory framework for housing associations. We have a new set of regulatory standards – governance, financial and consumer – geared around outcomes rather than process, with the regulator committing to a proportionate and risk-based approach. Nothing new for colleagues in other parts of the UK, but this has been a long journey in Northern Ireland. The regulatory framework has developed collaboratively, which will hopefully lead to greater understanding and buy-in.

Co-production and collaboration have definitely gained traction, in practice rather than aspiration. NIFHA has been working closely with both the Department for Communities and the Housing Executive to develop new policies and strategies, encourage and support innovation and remove some of the barriers to the delivery of new homes.

A co-authored think piece on mixed-tenure development and an affordable housing policy are on the horizon, while we continue to work in partnership to implement the delivery strategy for social housing. A total of 8,000 new social and affordable homes by 2020 remains the target for new development and it really will require all partners working together to realise this ambition.

The development landscape is a difficult one, with land and construction costs rising, sites in the right location harder to find and growing uncertainty around future funding. One thing that would make a significant difference is end of year flexibility on programme funding, rather than a one-year budget and artificial annual deadlines. Northern Ireland, like Scotland and Wales, has a strong capital commitment from government; however, this can’t be taken for granted in the future as public expenditure continues to be squeezed. Housing associations will have to look at alternative funding streams and innovative delivery models.

Funding for new development will face additional challenges as a result of welfare reforms, some already here, some looming in the distance. Universal Credit will be rolled out in Northern Ireland from next week and, aside from the operational difficulties it will present for housing associations, it will undoubtedly mean more financial pressure on tenants and on rental income.

“Northern Ireland has a strong capital commitment from government; however, this can’t be taken for granted in the future as public expenditure continues to be squeezed.”

Although a decision on the introduction of the Local Housing Allowance (LHA) cap will require some form of ministerial intervention, NIFHA’s research is clear on the negative impacts for tenants and housing associations. Up to 10% of housing applicants may be unable to afford even a one-bed social home. Parts of Northern Ireland could become unaffordable for social housing tenants as the LHA cap would disproportionately affect rural areas. Many of the areas with the lowest LHA rates also have high land costs, which could see the delivery of new social housing fall in certain areas. And, when you factor in under-occupancy, up to 7% of housing benefit could be lost per week for housing association tenants.

And, without a local Executive, what will happen when the current mitigations for the bedroom tax and benefit cap expire in March 2020?

As I look ahead, the challenges are clear and intertwined, and the welfare changes are leading to fewer social homes at a time when they are most needed. However, I have had the privilege of working with an ambitious, resilient and engaged sector during my four years at NIFHA. And I am confident that by continuing to work with government departments and agencies, as well as partners advocating for tenants and those most at risk, housing associations will find a way to sustain tenancies and provide new homes.

Jennie Donald, deputy chief executive, NIFHA

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