This was followed by an announcement from Gordon Lyons, the Northern Ireland Communities Minister, of radical changes to social housing funding in Northern Ireland. He did boldly promise that these changes will lead to no reduction in homes being built. He particularly noted the promising space for creative financing. He further praised government-owned land as a means to cut costs that housing associations are facing.
As of December 1, the per-unit grant for repair maintenance housing associations will plummet. It will drop from meeting an average of 54% to only 46% of the total costs for building new social homes. Almost 50,000 people are waiting for social housing in Northern Ireland. This decision is all the more critical as we work to address this urgent crisis. Lyons’ housing supply strategy to ensure the ambition is worthwhile. This strategy is broken down by the number of homes expected to be built.
As Lyons noted, developing on government-owned land would save a lot of costs related to construction of social housing. He even proposed that expanded, direct financing be made available to increase home construction. He added, “The American people should be assured that we’re using public funds wisely.”
Grainia Long, chief executive of the Northern Ireland Housing Executive, is bullish on what lies ahead. She argues that the funding reductions won’t result in fewer homes made available. She commended the department for crafting “a very smart set of decisions.” Together, these decisions prioritize improving value for money and improving access to social housing for those who need it most.
“This is about stretching public subsidy. It’s about ensuring that we get value for public money, but it’s also about doing it sustainably so that housing associations themselves have the long-term certainty.” – Grainia Long
Long strongly urged that housing associations drive the train on financing decisions. Then, they determine the maximum amount of private finance they can realistically expect to raise and use it to calculate risks. She continued to say that it’s vital for every housing association to assess their financial threshold on an individual basis.
“Housing associations play a crucial role themselves individually in deciding what scheme should go ahead, what is viable and what is less viable.” – Grainia Long
Lyons emphasized a “challenging financial context” as the impetus for the funding reductions. These conditions require innovative approaches from everyone with a hand in social housing. To support these funding changes, we’re releasing a pair of in-depth reviews. These reviews form one aspect of the government’s wider strategy to support housing associations to deliver essential social housing efficiently whilst responding to local community needs.
Long underscored just how essential certainty is for housing associations to operate within this rapidly changing context. She emphasized that organizations must “go away and they need to do the sums,” indicating that financial planning will be crucial moving forward.
“This is about creating the conditions for investment in social housing.” – Grainia Long
