Housebuilding sees growth in NI, but significant annual shortfall and social housing funding cuts raise concerns

The number of new homes started and completed in Northern Ireland have seen encouraging growth, according to the Chartered Institute of Housing (CIH) Northern Ireland, responding to fresh statistics released by the Department of Finance. While this dual increase signals positive momentum, significant annual shortfalls against housing need and recent cuts to social housing capital funding remain pressing concerns.

The department’s new dwelling statistics reveal that the number of new homes commenced over the January – March 2025 quarter was 1,725. This represents a 9.4 per cent increase compared with the same quarter last year. This figure marks the highest number of starts for a January – March quarter since 2022, and importantly, continues the upward trend observed over the last two years.

Critically, the number of homes completed over this period was 1,359. This figure represents a significant 7.9 per cent increase on the previous year's completions, indicating a healthier rate of housing delivery and a positive step towards addressing housing needs.

Justin Cartwright, CIH Northern Ireland national director commented: “These latest quarterly figures offer a crucial insight into the health of Northern Ireland's housing market, and the news is positive. The nine per cent increase in new home starts and the eight per cent rise in completions demonstrate progress to meeting our housing requirements. It's particularly pleasing to see the consistent upward trend in starts over the past two years.

“However, when we look at the bigger picture, significant challenges persist. For the full 2024-25 financial year, provisional new home starts stand at 6,580, with completions at 6,126. While these figures are an increase on the previous financial year, they fall short of what Northern Ireland truly needs.

“The Department for Infrastructure's housing growth indicators suggest an average of 5,700 homes are needed annually, but this is a conservative estimate. In our view, at least a couple of thousand more homes than that are needed each year to keep pace with demand, address backlog and alleviate homelessness. This means we remain significantly behind the numbers of new homes we need to build annually.

“Furthermore, to sustain an increase in overall housing supply, adequate capital funding for new social housing is vital. The recently published Department for Communities budget shows that the amount available for allocation to new social homes is £100 million less than was indicated in January. This deeply concerning reduction means that instead of starting around 1,600 new social homes this financial year, we are now likely to start around 1,000, against an identified need of more than 2,000. Such cuts will severely impact the most vulnerable in our society and exacerbate the housing crisis.

“To maintain this positive trajectory in starts and to urgently address the growing social housing need, we urge the NI Executive and relevant departments to review capital allocations, accelerate initiatives that streamline planning processes, and invest adequately in essential infrastructure. A clear long-term housing strategy that is underpinned by realistic funding is paramount to provide the certainty developers need and ensure everyone in Northern Ireland has access to a safe, affordable and quality home.”