You are viewing 1 of your 1 free articles
Northern Ireland government to fast-track housing association reclassification bill
Northern Ireland’s government will fast-track legislation to prevent the region’s housing associations being reclassified as public sector bodies.
Ministers for the Northern Ireland Executive have agreed to progress the Housing (Amendment) Bill (Northern Ireland) 2020 by accelerated passage.
Once passed, the bill will end the compulsory House Sales Scheme – Northern Ireland’s equivalent of the Right to Buy – for housing associations in the region.
The House Sales Scheme for Northern Ireland Housing Executive (NIHE) tenants will not be affected, although communities minister Deirdre Hargey hinted it could still be scrapped in future.
Housing associations in Northern Ireland have been threatened with reclassification since the Office for National Statistics (ONS) announced its intention to move the entire UK-wide sector to the public balance sheet for government accounting purposes in 2016.
If it had gone ahead, the £1bn of debt held by housing associations in Northern Ireland would be scored against the region’s budget, severely hampering their ability to borrow for development.
Ministers in England, Scotland and Wales quickly moved to pass legislation to deregulate housing associations enough for the ONS to reverse its decision, but no such action was taken in Northern Ireland because of a three-year political deadlock that ended in January.
READ MORE
Northern Ireland’s fledgling government quickly promised similar action, but interim measures agreed with UK Treasury were extended last month to March 2021 with ministers preoccupied by the coronavirus emergency.
Ms Hargey said: “Following this crisis, economic and social recovery will be vitally important for everyone.
“But as I have said, whilst there are challenges ahead, a technicality should not stand in our way of delivery.
“This legislation will help to maximise the possible investment in a key public asset.”
Under the new legislation, the statutory House Sales Scheme for housing associations will end after a two-year transition period, with landlords then having the option to run a voluntary scheme.
Only 66 homes were sold off through the scheme in 2018/19.
Ms Hargey added that she intends to consult separately “on methods of entry to affordable homeownership” including the future of the NIHE House Sales Scheme.
“I am keen to support people into homeownership as well as retain the social housing stock wherever possible,” she said.
Ben Collins, chief executive of the Northern Ireland Federation of Housing Associations (NIFHA), said: “NIFHA welcomes this announcement on bringing forward legislation to reverse the reclassification of housing associations in Northern Ireland.
“This will provide certainty at a challenging time, as it will allow housing associations to continue to match government funding pound-for-pound with private finance.
“This means twice as many homes can be built as would otherwise be possible.”
Sign up for our legal and regulation newsletter
Already have an account? Click here to manage your newsletters
