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Housing associations in Northern Ireland have requested an extension to the region’s social housing grant programme in light of the coronavirus pandemic.
The Northern Ireland Federation of Housing Associations (NIFHA) has asked the Department for Communities (DfC) to extend the 2019/20 programme by six months beyond April amid concerns that the full allocation will not be used because of the crisis.
Northern Ireland’s government allocates grant for the Social Housing Development Programme (SHDP) on a yearly basis, with £146m available in 2019/20 tied to 1,850 targeted starts.
In a document submitted to the DfC, seen by Inside Housing, NIFHA said an extension would ensure money earmarked for the SDHP “is not lost and can be used to build much-needed new homes”.
It added: “It will also help to address the unquantifiable and uncontrolled risk that housing associations are currently facing by potentially entering into contracts at this time and when their legal advice is that they should not be.
“We feel that six months is an appropriate length of time by which stage we hope there is wider clarity externally and the flow of contracts at the end of this uncertain period will bring much-needed relief to get contractors back up and running again.”
A huge chunk of starts through the SDHP are usually made near the end of the financial year. In 2018/19, 85% were registered in the final quarter.
The Northern Ireland Executive said last week that building sites can stay open during the pandemic as long as they obey social distancing guidelines. But many construction firms have stopped work, and the Construction Employers Federation has called for all “non-essential” construction work to cease.
Among 10 asks, NIFHA also said that housing associations should be made “central to any fiscal stimulus” and that frontline staff should be confirmed as key workers with priority access to personal protective equipment.
And it requested that ministers consider giving housing associations and their contractors extra financial help to offset the impact of COVID-19.
Ben Collins, chief executive of NIFHA, said: “NIFHA has outlined a series of actions which we think are necessary to maintain the new build programme, as we deal with the COVID-19 pandemic and the related impact on the construction industry and wider economy. We are working closely with the Department for Communities on this.
“Housing associations are here to ensure that new homes continue to be built and that the increased need for housing, which is likely to result from the economic fall-out from this outbreak, can also be met.”
A spokesperson for the DfC said: “The department is very aware of the real concerns within the sector given the COVID-19 situation.
“Officials continue to engage with housing providers on measures which might be taken to help alleviate these concerns and ultimately ensure that much-needed housing is built and aids economic recovery.”
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