Northern Ireland must not be forgotten in housing stimulus package

The Northern Ireland Federation of Housing Associations (NIFHA) is calling on the Treasury and our new Secretary of State, Theresa Villiers MP to ensure Northern Ireland benefits.

Much of the package centres on easing planning restrictions for private house builders in England. However, there is also a commitment to provide government guarantees to underwrite £10 billion of housing association borrowing to build new affordable homes.

This will be achieved through a new emergency infrastructure bill due to be rushed on to the statute book promising to provide £40 billion of state guarantees for infrastructure schemes that can start within 12 months. This includes underwriting £10 billion of cheaper private borrowing for housing associations and private developers.

A fair share for Northern Ireland could mean £290 million in loan guarantees and £9 million in capital funding for the construction of new homes, and an additional £8 million through the First Buy deposit scheme helping first time buyers to take their first step onto the housing ladder.

In response to the announcements, Cameron Watt, Chief Executive of the NIFHA, said:

It's good news that the Coalition Government recognises the key role of house-building in stimulating economic recovery.

In the last five years, Northern Ireland's housing associations have secured £300 million in private borrowing to match government funding to build new social and affordable homes.Ulster University research shows that for every ten jobs created through the social housing development programme, at least a further seven jobs are sustained elsewhere in Northern Ireland's economy.

However with the current cuts to government funding, it's going to be very difficult to achieve the Programme for Government's target of delivering 8,000 new social and affordable homes by 2015.

That's why it's vital our new Secretary of State Theresa Villiers secures our fair share of the £10 billion in loan guarantees and £300 million in capital funding to support the building of
much-needed homes.

If she succeeds, local housing associations can take many more of the 21,000 families in severe housing stress off the waiting list and help get Northern Ireland building.

Ends

For further information please contact
Cameron Watt
NIFHA Chief Executive
T: 028 9089 7693
M: 077 3415 7038