Starts and completions up in Northern Ireland but concern remains about drop in funding

This was the third-lowest number since the start of 2015, when 92 units were delivered. Besides the lockdown-dominated spring of 2020, the only other time completions have been so low is in the summer of 2023 (at 109).

In contrast, 200 social homes were finished in the final quarter of last year, and 430 in the three months before that. The latest figure represents a 36% year-on-year drop.

The Department for Communities’ 2025-26 budget includes £63m for new-build social homes.

A recent consultation document said this would “allow in the region of 1,000 new build social home starts” in the year.

But it added: “It is recognised that this is still significantly short of the target of 2,000 and a bid will be submitted in-year to the [Northern Ireland] Executive to address the shortfall.”

Justin Cartwright, national director for Northern Ireland at the Chartered Institute of Housing, described the latest housing data as “positive”.

“The 9% increase in new home starts and the 8% rise in completions demonstrate progress to meeting our housing requirements. However, when we look at the bigger picture, significant challenges persist,” he added.

Mr Cartwright said starts of 6,580 in the year to March 2025, and completions of 6,126, fell “short of what Northern Ireland truly needs. We remain significantly behind the numbers of new homes we need to build annually.”

Finding the money to ramp up construction remained a key challenge, he explained.

“To sustain an increase in overall housing supply, adequate capital funding for new social housing is vital.

“The recently published Department for Communities budget shows that the amount available for allocation to new social homes is £100m less than was indicated in January.

“This deeply concerning reduction means that instead of starting around 1,600 new social homes this financial year, we are now likely to start around 1,000, against an identified need of more than 2,000. Such cuts will severely impact the most vulnerable in our society and exacerbate the housing crisis.”

Mr Cartwright called for a review of capital allocations; a streamlining of planning processes; and more investment in essential infrastructure.

“A clear long-term housing strategy that is underpinned by realistic funding is paramount to provide the certainty developers need and ensure everyone in Northern Ireland has access to a safe, affordable and quality home,” he said.

Gordon Lyons, the minister for communities, said social housing was “crucial” to provide options for those who might struggle in the private rental market.

“My proposed budget of £63m will facilitate the start of approximately 900 to 1,000 new-build social homes. This is on top of the £105m for pre-commitments to housebuilding from last year. But this is not enough. This assembly last year declared a housing crisis in Northern Ireland, yet we are left in a position to fund less than 50% of the Programme for Government housing target.”

Mr Lyons pointed out that the department’s 2024-25 budget initially only allowed for 400 starts, yet this eventually increased to about 1,500.

“We will put the same effort into driving up these figures this year. However, it is not enough to simply ask for more money. We need to do things differently. That’s why I will be bringing proposals to the executive shortly on how we can do more with the money we have to build more homes.”

Seamus Leheny, chief executive of the Northern Ireland Federation of Housing Associations, said the country was “in the grip of a deepening housing crisis”.

“Once again, the budget for new social homes falls woefully short. It’s less than half of what’s needed to even begin reducing [the waiting list]. We need clarity and certainty on how additional funding will be secured as soon as possible.

“While the minister’s talk of new approaches is welcome, we need to see concrete plans now – not another year of delay. We can’t afford to be in the same position this time next year, still waiting for action, with uncertainty for social housing builders and a growing waiting list,” he said.