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NI housing association surpluses drop 5%
Housing associations in Northern Ireland saw a 4.8% drop in their surpluses in 2016/17, driven by a marked increase in overheads.
Global accounts for the sector released on Wednesday by the Northern Ireland Federation of Housing Associations (NIFHA) show overheads rose 13.5% from 2015/16.
Ben Collins, chief executive of NIFHA, said the figures highlight “the challenging environment” in which the sector’s 20 landlords are operating.
Northern Ireland has been without a government since January, after its executive collapsed due to a row between the DUP and Sinn Fein about a botched renewable energy scheme.
The political uncertainty caused a delay in rate setting and a reduction in the capital spend budget for 2017/18 – which in turn caused the Department for Communities to cut its social housing development target for this year, from 2,000 down to 1,750.
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Despite the difficult conditions, housing associations in Northern Ireland spent £289m as they delivered more than 1,600 new homes for social rent in 2016/17 and helped nearly 700 people purchase their first home.
The sector’s 20 organisations had a combined turnover of £311.6m, with total assets worth £3.5bn.
That represents a turnover increase of 10.1% on 2015/16 and around £200m of extra asset value.
Associations in the region manage 49,332 homes and employ 3,226 staff.
“The report presents a picture of a strong and resilient sector, showing balance sheet growth and the generation of surpluses to fund the building of new homes and ensure continued delivery of quality services to tenants,” said Mr Collins, speaking at NIFHA’s annual Finance Conference in Belfast.
“We are keen to do more, working in partnership with the public and private sectors. Focusing on continued efficiency and securing a positive public policy environment will be key to achieving this.”
