Housing Executive to start building homes again as number in need spirals ‘out of control’

The public authority will be given new borrowing powers to update existing deteriorated stock and finance major new construction projects, the Communities Minister said.

It is part of a significant shake-up of Northern Ireland’s largest social housing landlord.

Minister Caral Ni Chuilin warned that the number of people sleeping on sofas and in hostels while awaiting a decent home is “out of control”.

She told the Assembly: “We need to build more social homes. We need to sort out the long-term future of the Housing Executive.

“We need to make sure it can repair its homes, regenerate its estates and start building again. We need to get the Housing Executive building again.”

Around 1,500 social homes have been constructed each year over the last seven years but that has not kept pace with demand.

The number of people with an acute need on the waiting list has risen by on average 1,000 a year.

The Housing Executive is responsible for 85,000 homes.

It has two functions – as a landlord and as a regional housing authority, managing the waiting list.

Ms Ni Chuilin is proposing to place those roles with separate organisations in order to allow the Housing Executive to borrow based on its revenue streams rather than adding to Stormont debt.

While it remains classified as a quasi-public corporation, as a landlord it cannot borrow.

The minister said: “I plan to change the classification of the Housing Executive landlord to a ‘mutual’ or co-operative designation so that it may borrow and secure a sustainable future for all of its 85,000 homes and provides security for current tenants and future generations.”

She wants to expand the existing stock while opening a new route to home ownership for those who can afford to do so.

A significant number of properties have been sold off to tenants in recent years, working against efforts to expand the portfolio.

Ms Ni Chuilin added that a new system known as intermediate rent homes can be a stepping stone for some into low-cost home-ownership or can provide a better, more affordable rental solution for others.

About 40% of all housing benefit is paid to private landlords.

More families with children are renting privately.

The minister pledged to bring forward legislation to improve the safety, security and quality of the sector, extending the notice to quit before people can be evicted to something like six months.

“I accept that landlords run businesses, but I will not let them exploit tenants, especially given that so much of the rent they receive comes straight from taxpayers,” she said.

“It doesn’t matter if you rent a social house or from a private landlord, I will bring forward proposals to ensure your rent is fair and secures you a good home.”