Housing body backs increase in NIHE rents
Housing Executive (NIHE) rent increases are vital to ensure home are maintained to a good standard, the Chartered Institute for Housing (CIH) has said.
The institute was commenting after it emerged that a massive funding shortfall could result in the “gradual loss of 43,000 social homes”.
On Friday, the BBC reported that a first-day briefing paper presented to the new communities minister Deirdre Hargey and obtained through a Freedom of Information request.
It explains out how the NIHE requires £7.1 billion over the next 30 years – with £3bn needed over the next 11 years – to deal with the backlog of work.
The document states: “This is currently unachievable as the NIHE generates insufficient income via rent to properly sustain itself. After operating costs it is only able to afford about half of the investment it requires.”
Ms Hargey said: “This small increase represents a first step towards the executive’s commitment in ‘New Decade, New Approach’, to a long term trajectory for Housing Executive rent which is sufficient to support the sustainable future for its stock which is also affordable for tenants.
“This is an urgent priority. This is about revitalising the way in which we provide and deliver public housing in the future.”
CIH director for NI Justin Cartwright said rent setting is “a delicate balancing act” between keeping housing costs affordable and ensuring there is enough money to maintain homes to a good standard.
Mr Cartwright said NIHE rents have been “kept articificially low” for a few years to help keep rents affordable, but added: “It has resulted in housing stock falling below the standard of a decent home which tenants deserve.”