NIHE call for extra borrowing powers throws doubt on transfers
The Northern Ireland Housing Executive (NIHE) is calling for further borrowing powers in a move some experts see as a push back against discussions on breaking the organisation up.
Donald Hoodless, chair of the 88,000-home NIHE said that the government body should be given new powers to borrow against its assets to ‘tackle the slow decline and rising disrepair’ of properties. Currently the NIHE is not allowed to borrow to fund work such as regeneration or building new homes and is not permitted to refinance historic debt.
According to Mr Hoodless, in the long term ‘capital funds will be extremely limited within the public sector’ so independent borrowing powers are an obvious solution. The NIHE estimates that at least £6bn is required over the next 30 years to tackle disrepair and improve homes. Mr Hoodless said refinancing £410m of historic debt at cheaper interest rates could release £77 million a year for investment.
Mr Hoodless’ comments come as housing associations are working alongside consultants to look at their capacity to take on NIHE homes. Then minister for social development Nelson McCausland announced in January 2013 plans to break up the landlord.
However, Mr Hoodless said ‘there is not a political agreement’ for the transfer of stock to housing associations at the moment and the NIHE is not likely to be broken up for a while yet.
Cameron Watt, director of the Northern Ireland Federation of Housing Associations (NIFHA), said Mr Hoodless’ comments indicate ‘a change in thinking’ for NIHE. Mr Watt said: ‘In the past Donald Hoodless has spoken publicly about the creation of stock transfer organisations.’
Inside Housing understands that at least five large landlords are reviewing their capacity to take on stock with the help of external agencies. Oaklee Trinity and Fold Housing Association are both looking into whether they could take on stock.
