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Northern Ireland government to review social housing grant budget based on coronavirus costs
Northern Ireland’s government will review the amount of funding allocated to its Social Housing Development Programme (SHDP) midway through the year to take account of extra costs caused by the coronavirus pandemic.
The Department for Communities (DfC) has initially budgeted £127m for the SHDP in 2020/21, tied to a target of 1,850 social housing starts.
That is down on the £146m provided for the last financial year, also with an associated target of 1,850 starts.
However, the DfC told Inside Housing that it will consider “the potential impact on construction of COVID-19 in terms of lockdown, social distancing requirements and cost” and that an analysis is planned for autumn.
The SHDP is run on an annual cycle, meaning the vast majority of homes funded through the programme are typically started near the end of the financial year as housing associations acquire sites, design schemes and gain planning permission.
Only 41% of last year’s 1,850-home target was achieved, with 761 starts made as the virus outbreak in March blighted year-end activity.
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Housing minister Deirdre Hargey – who has temporarily stepped down for health reasons – said in February that £146m “was not enough”.
Her interim replacement, Carál Ní Chuilín, maintained that rhetoric earlier this month when she promised to increase social housebuilding in Northern Ireland.
The ‘New Decade, New Approach’ deal – agreed by Northern Ireland’s political parties upon the restoration of its power-sharing government in January after a three-year deadlock – pledged “enhanced investment in new social home starts”.
A spokesperson for the DfC said: “The provision of social housing is a key priority and its need is likely to be part of an economic and social response to COVID-19.
“In addition to the provision of suitable budget due regard will have to be given to the potential impact on construction of COVID-19 in terms of lockdown, social distancing requirements and cost.
“The department has already committed to help the sector meet unforeseen costs directly resulting from COVID-19 but, as the full impact is impossible to gauge at this time, we intend to carry out further analysis in the autumn.”
Ben Collins, chief executive of the Northern Ireland Federation of Housing Associations (NIFHA), said: “NIFHA welcomes the NI Executive’s continued commitment to social housing and recognition that additional costs will arise due to COVID-19.
“Building new social homes will be key to economic recovery and addressing the increasing numbers of people in housing stress.”
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