House of Commons - Northern Ireland Affairs

Select Committee on Northern Ireland Affairs Sixth Report

1 INTRODUCTION

1. Since the early 1970s, social housing in Northern Ireland has developed differently from the rest of the UK. This is true particularly in relation to housing policy and the management of housing services which have avoided the many changes in England, Scotland and Wales. The establishment of the Northern Ireland Housing Executive (NIHE) in 1972 provided a single, comprehensive regional strategic housing authority which has had a significant stabilising influence throughout the years of the 'troubles'.

2. However, the latest NIHE annual review of the housing market in Northern Ireland published in January 2004[1] stated that "despite the continued economic growth and buoyancy in the housing market there are increasing signs of strain". These strains manifest themselves in increasing affordability problems for first time buyers, a growing waiting list, rising numbers in urgent need of housing, and a declining supply of new social housing. Social housing stock in Northern Ireland is relatively new and is generally regarded as in good condition compared with other areas in Great Britain (GB).

3. In this report we set out the results of our examination of the effectiveness of current social housing provision in Northern Ireland, and have looked in particular at:

the rising demand for social housing
the continuing decline in the supply, and
the quality of the housing stock

4. In undertaking this inquiry we were conscious of the excellent, groundbreaking reports on housing by the former Committee for Social Development of the Northern Ireland Assembly[2] which "represented the first local, cross-party analysis of housing issues for decades".[3] While the Assembly remains suspended, our aim has been to carry that work forward.

5. We have held informal meetings with the main political party representatives to listen to their views and concerns about social housing, and were encouraged by their general welcome for our inquiry; we have taken formal evidence from a range of organisations at hearings in Westminster, Belfast and Londonderry; a visit to Birmingham was undertaken to compare housing provision there with that in Northern Ireland. We heard evidence from Mr John Spellar, Social Development Minister. We have been able to draw on the work of a recent House of Commons inquiry into affordable housing in England also[4]. We are grateful to all those who have helped us with this inquiry, including those who have provided oral or written evidence. We particularly wish to thank Tim Moore, a senior researcher with the Northern Ireland Assembly, for his valuable support and assistance.

Background

6. It was pointed out to us that Northern Ireland has "a distinctive demographic structure compared to other parts of the UK, with a greater proportion of under-16s and a smaller proportion of elderly pensioners"[5]. In Northern Ireland 23.6% of the population is aged 16 years and under compared to 18.7% in England and Wales.[6] Average income remains much lower than the rest of the UK, and the average household size is larger at 2.6 compared to the UK average of 2.4.[7]

7. Home ownership has grown over the past twenty years aided by a steady if modest growth in house prices and the absence of the significant surges and collapses experienced in other parts of the UK, particularly south-east England. Last year owner occupied dwellings accounted for 75% of the total occupied housing stock in Northern Ireland, while the proportion of social housing -comprising NIHE and Housing Association dwellings- has fallen by 10% over the past ten years to just under 20% of all occupied dwellings. The remaining 5% of dwellings were in the private rented sector.

Northern Ireland Housing Executive

8. NIHE's origin lies in the Cameron Commission of Inquiry which reported in 1969[8] that one cause of continuing political conflict and street disturbances was "a rising sense of injustice and grievance amongst large sections of the Catholic population in respect of the inadequacy of housing provision by certain local authorities".[9] It was set up as a non-departmental public body under the Housing Executive Act (NI) 1971 as the regional housing authority taking over responsibility for the building, management and allocation of all public housing from local authorities, the Housing Trust, and the Development Commissions.

9. The NIHE is "the sole assessor of social housing need in Northern Ireland, while the Department sets, controls and monitors the programme to meet that need, which is delivered by Housing Associations".[10] Its primary responsibilities are to:

regularly examine housing conditions and housing requirements,
draw up wide ranging programmes to meet these needs,
effect the closure, demolition and clearance of unfit houses,
effect the improvement of the condition of the housing stock,
encourage the provision of new houses,
establish housing information and advisory services,
consult District Councils and the Northern Ireland Housing Council,
manage its own housing stock in Northern Ireland, and
fulfil the role of Home Energy Conservation Authority for Northern Ireland.

It has a statutory role in providing accommodation for certain groups of homeless people. It also administers housing benefit in Northern Ireland.

10. There is a consensus that the NIHE has provided a successful framework for delivering social housing over the past thirty years,[11] and it is also held in high regard for its community development work.[12] The Committee for Social Development commended the NIHE in its report in 2001.[13]

Government and Housing Associations

11. The Department for Social Development (DSD) has the primary responsibility for housing policy in Northern Ireland and develops housing strategies and programmes in partnership with the NIHE, registered Housing Associations, and a range of stakeholders.[14]

12. Other Departments have a significant impact on the provision of housing. The Department for Regional Development (DRD), responsible for strategic planning, implements the Regional Development Strategy (RDS) which aims to facilitate the supply of additional housing to meet the projected needs of the region over the next 25 years. The Department of the Environment (DOE) has responsibility for operational planning matters including planning control, the preparation of development plans, and processing planning applications. The Department of Finance and Personnel (DFP) has responsibility for making and amending building regulations and controls building standards. DFP controls the level of expenditure on building and maintenance of social housing through its overall responsibility for public expenditure.

13. Housing Associations are non-profit bodies which provide, manage, and maintain housing accommodation. There are currently 39 registered, and a number of unregistered, associations in Northern Ireland. Many originated as local community based organisations and specialise in providing accommodation for special needs groups. The Housing Policy Review in 1996 resulted in responsibility for all 'new build' social housing being transferred to them from the NIHE .[15]

Recent Developments in Great Britain

14. The Low Cost Home Ownership Task Force, set up by the Deputy Prime Minister and chaired by the Rt Hon Baroness Dean, reported in November 2003.[16] The Task Force was set up to consider a variety of schemes currently available to potential homeowners on low or modest incomes and identify the most effective ways of promoting sustainable homeownership.[17]

15. The report of a UK-wide Review of Housing Supply in March 2004, set up by the Chancellor of the Exchequer and the Deputy Prime Minister and chaired by Kate Barker, makes recommendations to address the lack of supply and responsiveness of housing in the UK.[18] While the supply of housing, estimating housing need, land availability and the planning system - all issues relevant to our work were covered, many of the Review's recommendations apply to England only.[19]

1 The Northern Ireland Housing Market Review and Perspectives 2004-2007, NIHE January 2004 Back

2 The Committee carried out two major inquiries in 2001/2002 - Inquiry into Housing in Northern Ireland, Committee for Social Development, Second Report, Session 2001/2002; Second Report on the Inquiry into Housing in Northern Ireland (Homelessness), Committee for Social Development, Third Report, Session 2001/2002. The issues explored in these inquiries were:

Private Sector Renewal and proposals to move from a mandatory to a discretionary grants system;

Houses in Multiple Occupation and the Regulation of the Private Rented Sector;

Large Scale Voluntary Transfers and the NIHE;

The rights of Housing Association Tenants to buy their properties; and