Plans to build 5,850 new social homes in Northern Ireland by 2027 could be at risk, as budget constraints could see fewer than 1,000 started in the next financial year.
The recently published Programme for Government (PfG) set out a commitment to have started construction on at least 5,850 new social homes by 2027.
It is understood that the clock on the target set in the PfG started during the current financial year, and would mean over 2,000 new starts a year.
But at a Communities Committee meeting on February 27 — the day the Executive approved the PfG — it was revealed the department will not meet that target under current budget allocations.
During the meeting committee members heard that the department is projected to deliver at most 1,500 new starts for the 24/25 financial year.
But this number could drop to less than 1,000 new homes in the next financial year unless additional funding is unlocked.
John Greer, Deputy Secretary of Corporate Services Group in the Department for Communities
Deputy Secretary of the Corporate Services Group at the Department for Communities, John Greer, outlined the department’s financial position under the initial allocations provided in the draft budget in 2025/6.
He noted the department is facing a “significant shortfall” after bidding for £431.3m of capital funding, but receiving an allocation of £270m.
He went on to highlight that the department “requires £217.6m to cover its inescapable and pre-committed projects, and that only leaves £50m for the minister to make decisions on with regard to other capital projects.”
Brian Kingston.
After a question from DUP MLA Brian Kingston, the department’s Finance Director Kathy Sands clarified the implications of the limited capital budget for new social homes.
“We’ve only about £50m to deal with our new homes and all of our projects right across the department,” she said.
“If we took that £50m and put that all into social homes, the indications would be £50m would get us about 1,000 homes, but that would mean no investment in anything else in capital across our department as a new investment.”
Mark Baillie, Head of Policy and Programmes at Homeless Connect, said: “This society is in a situation where just under 31,000 households, including almost 60,000 individuals, have homelessness status on the social housing waiting list.
“The inclusion of a specific target of starting over 5,850 new social homes by 2027 is welcome. However, for the target to be met, significant and consistent investment will be required.”
Last week, John Glass of Alpha Housing warned that funding may need to “double” in order to tackle the backlog of some 50,000 people waiting for a social home.
He added: “The final budget allocation for the coming year provided to the Department for Communities must include the investment needed to ensure these new homes can be started.”
A spokesperson for the Department for Communities said: “While mindful of the financial pressures faced by DfC and all Executive departments, the minister is committed to the housing targets outlined in both the Executive’s Housing Supply Strategy and Programme for Government.”