The number of new homes completed in NI during 2024 looks set to decline once again following a 60-year low, it has emerged.
That’s according to a recent report by CIS, which shows that while there is a strong pipeline – although hindered by an underfunded water system – completions of new homes in 2024 remained lower.
“Housing completions in NI look set to continue to decline in 2024 or at best maintain pace with completions in 2023 which fell to a 60-year low last year,” it said.
“Plans for an estimated 19,000 homes are being held up due to restrictions from an underfunded water system.
“New investment in housing over a number of years, as measured by new developments getting underway, has been erratic.
“In 2023, 150 new housing developments got underway, comprising 6,632 units. This peak looks likely to be followed by a dramatic downturn in investment in 2024. To the end of Q3, 105 new developments got underway equating to just 2,772 units.
“This represents a 54% fall in investment when compared to the same period last year. We foresee a 20% fall in new investment in housing this year with a modest recovery in 2025.”
It says the “pipeline for housing remains strong” and that “once infrastructural issues are addressed growth in this sector will follow”.
“New applications for housing have remained steady since 2022 but are set to increase significantly in 2024 indicating renewed optimism in the housing market. To date, at the end of quarter three, plans have been submitted for over 11,000 new housing units, up 23.8% for the same period last year.”
It comes as housing associations here are calling for more properties to be built here.
“Delivering 1,403 new social homes this year – despite the barriers faced – has been positive, but that is simply not enough,” Seamus Leheny, chief executive of the Northern Ireland Federation of Housing Associations (NIFHA), said.
He said housing associations have “chartered uncertain waters these past 12 months due to a combination of inflationary pressures and the continuing strain on government budgets”.
“This situation has not only impacted the Social Housing Development Programme (SHDP) funding, but also the capital funding required for vital infrastructure such as water and sewage that is critical for new build developments. This has led to delays in new build handovers and starts which at a time of reduced funding for new builds from government, combined with a rapidly growing waiting list of over 48,000 applicants, is causing significant concerns for housing associations.”