Housing policy changes in Northern Ireland – Q2 2024

This article summarises key housing policy developments in Northern Ireland during the second quarter of 2024.

We'll cover the social housing and homelessness crisis, new initiatives, regulations and our involvement in shaping these policies.

Social housing concerns rise amid budget cuts 

A critical issue this quarter was the drastically reduced budget for the social housing development programme (SHDP). This resulted in a mere 400 new social homes planned for 2024/25 (at most), a 73 per cent decrease compared with the previous year. This comes at a time of severe housing need, with over 47,000 households on the waiting list and many experiencing homelessness. 

We, along with other housing organisations, expressed grave concerns about the potential consequences, including longer wait times and increased strain on the existing system. This drastic reduction, a direct result of a 38 per cent cut in capital funding for the Department of Communities (DfC), follows our warnings at the Committee for Communities. 

However, there are some efforts to address this issue. DfC is exploring ways to maximise new homes through potential revisions to the SHDP and related policies, a process we contributed to by sharing experiences from Britain. 

Additionally, DfC launched an equality impact assessment consultation on the initial 2024-25 budget decisions.

Supply falls short, homelessness increases

Housing statistics reveal a worrying trend. The number of new homes built in 2023-24 was 5,418 – the lowest in a decade, falling short of even conservative estimates of need. This indicates a growing gap between housing supply and demand, which likely pushes up prices and makes finding affordable housing more difficult. 

Meanwhile, social housing targets were met in 2023-24, with 1,508 homes started against the goal of 1,500. However, the social housing waiting list continued to grow, exceeding 47,000 households. 

Homelessness also saw an 11 per cent increase, with rising financial hardship and lack of affordable accommodation being key factors. This surge in homelessness has put a strain on public finances, with temporary accommodation placements exceeding 10,000 for the first time.

Although social housing targets were met in 2023/24, the social housing waiting list in Northern Ireland continues to grow (Cr: Irene Miller/Shutterstock)

A new initiative for affordable housing 

Despite the challenges, there were some positive developments. DfC announced a new funding opportunity for the "intermediate rent scheme", offering an alternative for those priced out of the private market but unlikely to secure traditional social housing. These properties will have rents at least 20 per cent below market value. 

This initiative aligns with recommendations from our previous DfC-sponsored research report and has the potential to provide much-needed relief for those struggling to find affordable housing. Applications to operate as the intermediate rent provider are open until 23 August 2024 and this first phase of the programme will see the delivery of 300 new affordable homes. 

Focus on private tenant safety and letting agent regulation 

New regulations aimed at improving tenant safety in the private rented sector (PRS) require landlords to install specific smoke, heat and carbon monoxide alarms in their rental properties. Landlords with existing tenancies (before 1 September) have until 1 December 2024 to comply. All new tenancies (after 1 September) must be compliant from the outset. 

One smoke alarm must be placed in the main living area and in every hallway or landing on each floor. Every kitchen needs a heat alarm. Carbon monoxide alarms must also be installed in any room with a fixed fuel-burning appliance or a flue. 

Alarms can be either tamper-proof or hard-wired, and smoke and heat alarms must be interconnected. The Department for Communities published a report summarising the consultation and analysis that informed these changes. 

On a separate note, we are nearing completion of our research commissioned by the Housing Executive on letting agent regulation. This project examines current practices and proposes a new regulatory framework for letting agents in Northern Ireland, as part of DfC’s proposals for change to the PRS. 

Other developments 

Our previous research on rent control was referenced in an Assembly debate. 

Additionally, the minister for communities progressed legislation to address the disparity in legal protection for those affected by defective buildings. The Defective Premises Bill aims to extend the limitation period for legal action against such buildings, prospectively from six years to 15 years and retrospectively from six years to 30 years. This aligns Northern Ireland's legal position with England and Wales. 

The Bill’s consideration stage was completed on 11 June. 

Stay informed and engaged 

We will continue to monitor housing policy developments and advocate for solutions to the housing crisis in Northern Ireland. 

• Read the Q1 round-up

Main image: Alex An Der/Shutterstock