Difficult housing issues to be tackled urgently

The Minister for Social Development, David Hanson MP, today launched the Housing Executive’s “Northern Ireland Housing Market: Review and Perspectives 2007-2010”. The review outlines the housing challenges facing Northern Ireland in the next three years.

In welcoming the publication of the Review, the Minister said,

“The publication of this report is opportune and I commend the Housing Executive for producing such a comprehensive assessment of the market, it clearly sets out issues and identifies many of the challenges ahead.

“The market, in certain ways and at certain times fails to satisfy the needs of communities, it sometimes fails to meet the minimum standards our society sets for a decent home or fails to produce the necessary quantity of housing impacting most on those who are vulnerable or are just ‘starting out’.

“Both the incoming Assembly and I are committed to improving access to affordable housing across tenures.  The Review & Perspectives published today builds the evidence base for housing policy decisions.  This will contribute to the debate that the review into affordable housing led by Sir John Semple has generated.  Much good work has been done however I accept that if we are to sustain progress difficult issues will have to be tackled. I understand the urgency of the issue for the many first time buyers attempting to access the market and for the increasing number of applicants awaiting social housing and I am determined to take action to address these issues.”

Paddy McIntyre, Chief Executive of the Housing Executive, said:

“The Housing Market Review demonstrates the vulnerability of people across Northern Ireland: those who find themselves homeless, homeowners, migrant workers, or those trying to buy their first home.

“Spiralling house prices coupled with an extremely active investor market has led to a growing affordability problem throughout Northern Ireland. For the first time, average house prices here are higher than for the UK as a whole. Availability and access to decent housing is pivotal to our communities’ social cohesion and economic prosperity. We welcome the opportunity given by Sir John Semple’s review to make a real change.

“The continuing rapid growth in the number of applicants on the waiting list and those in “housing stress” indicates that despite our sustained economic growth there is a considerable shortfall in the supply of social housing. In recent years “housing stress” has been concentrated in and around Belfast and Derry/ Londonderry. However, demand for social housing has been rising generally throughout the Province. This is set to continue unless there is a significant increase in the construction of affordable new homes.

“As the strategic housing authority we are committed to working with others to promote and facilitate all housing tenures to create a balanced housing market.”

The Review states that:

• The number of households in urgent housing need has increased by 11%.
• The number of people who are homeless has increased by 15%.
• The proportion of house sales to first time buyers is continuing to fall, in 2006 it was 33% compared to 60% in 2001.
• 29% of all homes were occupied by a single person household.
• The owner occupier sector continued to grow mainly due to new construction and the sale of Housing Executive dwellings: 69% of the total stock is now in owner occupation.
• ·The private rented sector has grown rapidly and in March 2006 there were an estimated 65,000 occupied private rented dwellings.

The review is available on the Housing Executive’s website.

Notes to Editors:

1.  Media enquiries to Jonathan Blease in the Housing Executive Press Office on 028 90318786.  

2.  Key Points from the Review

• The number of people on the social housing waiting list has increased with 15,700 in housing stress, while the number of homeless households has increased in 6 months from 4,244 to 4,782.
• The owner occupied sector continued to grow with the construction of 14,000 new homes and 2,500 Housing Executive house sales. There are now 484,000 homes is this sector (69% of the total stock.)

Findings from research into the private rented sector found that the sector:

• is experiencing much higher turnover;
• is increasingly dominated by younger households
• most landlords had a maximum of five properties and 48% of landlords had entered the sector in the last five years.

3.  Demographics

• There is a growing number and proportion of people of pensionable ages: between 2004 and 2019 the number is expected to increase by 87,00 to 168,000.
• Between 2004 and 2019 the number of people aged 74 and over is projected to increase by 45,000 to 150,000.
• A declining number and proportion of inhabitants are children under 16: between 2004 and 2014 the number is expected to fall by 8.7% from 357,000 to 326,000.
• Housing Executive has sold 115,000 homes and now accounts for more that one-fifth of the owner-occupied sector and provides an affordable sound investment for first-time buyers.
• International migration is also starting to have a significant impact, with a figure of nearly 5,000 migrant workers in 2004/5.
• The demographic profile has important implications not only for the number of new dwellings required but also their design and the growing need for housing support services to help older people live independently in their homes.

4.  About the Review

The Northern Ireland Housing Market brings together the most recent market intelligence drawing on the latest statistics compiled by the Housing Executive, Government Departments and the private sector. Summaries of the key findings of housing research undertaken or commissioned by the Housing Executive are also included.