‘Housing associations are ready to deliver more and better homes’

editorial image

Everyone should have access to a decent home at a price they can afford. Providing good quality social housing is vital in achieving this goal, says Cameron Watt.

The break-up of the Northern Ireland Housing Executive (NIHE), announced last week by Nelson McCausland, heralds major changes to our social housing system, especially the proposed transfer of its 90,000 homes to housing associations.

NIHE has a hugely impressive record. Over the last forty years it has provided good homes, regenerated communities and ended discrimination in social housing.

With such success, why the need for change? NIHE has identified a shortfall of over £1Billion required to refurbish its 90,000 homes. There is also a pressing need to increase social house building.

Health and education will continue to be prioritised in allocating the block grant. Therefore we cannot deliver the necessary social housing without a big increase in private investment. NIHE’s public sector status prevents it from borrowing privately, in contrast to our thirty housing associations that have already raised £500 million of competitively priced finance.

For 20 years in Great Britain there have been successful large scale transfers of public housing to housing associations. Concerns of affected tenants and housing staff have been addressed through agreements fixing rent increases and deals securing employment rights. We can therefore benefit from this well-proven approach.

The Minister’s announcement was intentionally high-level. With the new structures due to be in place by March 2015, there is a huge amount of urgent work required to determine the details. For example, will there be one new landlord or several, will the new landlords be established along geographical lines and if so, which ones?

The Minister should give tenants, NIHE staff and all of civic society full opportunity to help work through these issues. During these discussions, NIFHA and many others will be making the case for independent regulation of social rented housing in Northern Ireland, as recently introduced in Scotland and England. This will provide maximum safeguards for tenants and certainty for landlords.

There has been some speculation that NIHE homes might be transferred to some ‘super associations’ from Great Britain, raising concerns about accountability. Options should not be discounted at this stage. However Northern Ireland has the skills, capacity and potential to complete this successfully ourselves. Housing professionals in NIHE and housing associations have impressive and complementary skills. Our largest housing associations currently have around 5,000 homes, but these existing landlords have the expertise and capacity to grow much bigger.

Reform on this scale is an immense challenge, requiring new and perhaps unlikely partnerships. A polarised debate will get us nowhere. Current tenants and the 20,000 households in acute need are relying on us to deliver the billions in private investment to ensure that finally, we all have a decent place to call home.

Cameron Watt is Chief Executive of the Northern Ireland Federation of Housing Associations (NIFHA)