NIFHA’s Response to DfC Statement Regarding Funding for New Social Homes

In response to the changes to funding for new social homes announced today by Minister for Communities Gordon Lyons, NIFHA has released the following statement.

Seamus Leheny, CEO, NIFHA, said “The changes announced by the Department on the Housing Association Grant rates represent a significant shift in how new social and affordable homes will be funded. Under the new model, the average level of public funding support will fall from around 54% to approximately 46%, with some areas – including Belfast – expected to receive even lower rates.

“Housing associations have long delivered new homes by combining public grant funding with private finance, a model that has proven highly effective and efficient over many years. However, these reductions raise real concerns about the future viability of many projects currently in development or close to commencement, particularly in areas of highest housing need.

“These changes have been developed without detailed consultation with the housing association sector, and as a result, their full impact has not been properly assessed. With the new grant rates due to take effect from 1 December, there is a real risk that key projects could be delayed or cancelled, especially in places like Belfast where demand is greatest. Housing Associations will now have to re-evaluate if and how many projects can progress in the short term.

“NIFHA urges the Department to engage urgently with the sector to ensure that these changes do not undermine the delivery of much-needed new homes across Northern Ireland.”