New housing plan 'hitting brick wall' over funding, says minister

Almost 50,000 applicants are on the social housing waiting list, according to recent figures

Stormont's efforts to secure borrowing powers for the Northern Ireland Housing Executive are hitting a "brick wall," the communities minister has said.

Gordon Lyons said the plan would be a "huge game changer" in providing funds to build more homes and renovate existing stock.

Stormont is funding work on about 1,000 new social houses this year - far short of the Northern Ireland Executive's target. Its Programme for Government pledged to start work on at least 5,850 new build social homes by 2027.

A UK government spokesperson said the latest spending review saw the executive provided with a record settlement of about £19.3bn per year.

As part of the review, the Treasury committed to begin immediate negotiations on a full fiscal framework for Northern Ireland, including consideration of the Northern Ireland Housing Executive borrowing, they added.

Lyons said he felt discussions with the Treasury were "going round in circles".

Almost 50,000 applicants are on the social housing waiting list, according to recent figures.

Lyons has previously cited borrowing powers for the Housing Executive as a way of increasing housing supply.

He was asked for an update on the plan as he appeared before a Northern Ireland Assembly scrutiny committee.

The minister said it was one of his "biggest frustrations so far in my time in office".

"I seem to continually come up against a brick wall on this," he added.

Communities Minister Gordon Lyons said there was a need to "thrash out what the difficulties are".

Lyons said a "simple confirmation" was required from the UK government that "what we are planning to do is allowed under Treasury rules, which we believe that it is".

But he said some in the Treasury considered the issue "more complex" and were concerned it would "add to the debt figures essentially of the UK".

The Democratic Unionist Party (DUP) minister said there was a need to "thrash out what the difficulties are".

"This is a change that we need. I believe there's unnecessary hold up," he told the communities committee on Thursday.

'Better approach'

Seamus Leheny, from the Northern Ireland Federation of Housing Associations, told BBC News NI a "better approach" was needed to deliver new social housing.

He said issues included the level of funding provided by the Stormont executive, as well as "wastewater infrastructure, planning delays and availability of suitable land".

"The housing association model, which utilises private finance and public funding, is a successful model when adequately supported by the government, and we want to see this enhanced to build more homes," he added.

Seamus Leheny from the Northern Ireland Federation of Housing Associations said more homes were needed

Justin Cartwright, national director of Chartered Institute of Housing Northern Ireland, described the pressures on social housing stock as "immense".

He said "significant additional finance" was needed for the Northern Ireland Housing Executive (NIHE) to improve its existing properties.

"While we press HM Treasury on the need for action, we must also focus on the policy levers we have at home," he added.

"Securing borrowing powers is only viable if NIHE has a sustainable financial model to back it up.

"A crucial part of this is setting sustainable rents, which must balance affordability for tenants with the long-term revenue needed to invest in and maintain homes."

Mr Cartwright said this would help in "giving lenders the confidence that NIHE can secure and repay the essential investment needed".

'Crucial issue' for tenants

NIHE chief executive Grainia Long said the housing body has been working with Stormont departments "to provide the information needed for discussions" with the Treasury.

She said it was a "crucial issue for our tenants whose homes urgently need to be improved" as well as those on the social housing waiting list.

Grainia Long, chief executive of the Northern Ireland Housing Executive said her organisation has been working with Stormont departments

"A change to borrowing arrangements for the Housing Executive, along with sustainable rents, would enable us to invest more in our current homes and, eventually, to build new housing," she added.

"It would enable us to operate similarly to public housing authorities across the UK."