By Eniola Amadu
The chief executive of the Northern Ireland Housing Executive has revealed that funding cuts for housing associations to build new social housing will not lead to a reduction in the number of homes built.
According to her, she said “it would be for each individual housing association to decide themselves how much private finance they can borrow, and how much risk they can take on”.
“Housing associations play a crucial role themselves individually in deciding what scheme should go ahead, what is viable and what is less viable” she said on BBC radio Ulster’s Good Morning Ulster programme.
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The associations have long called for greater clarity, prompting the minister to introduce a housing supply strategy to provide certainty about the government’s ambition and the number of homes to be built.
Meanwhile, “The other key elements of this package include two separate reviews, which housing associations themselves have acknowledged are necessary and have long requested. The first review will look at easing the constraints on associations regarding the types of homes they can design,” she said.
“So there’s a lot of additional costs in there for associations.”
Ms Long explained that lowering the grant rate aligns with how social housing is funded in other parts of the UK.
“This is about creating the conditions for investment in social housing.”
Ms Long emphasized on the need for prudent use of public funds saying, “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 long-term certainty.
“The public needs to know that we’re using public money effectively,” she added.
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However, the communities minister, Gordon Lyons stated that the “challenging financial context” required creative thinking and the changes are expected to deliver greater efficiency and increase the number of social homes for those in need.
