New Affordable Rental Homes to Launch Soon
The first homes constructed under a new affordable rental scheme supported by Stormont will be available within weeks, announced the Communities Minister.
The "intermediate rent" housing will provide rents set at 20% below the market rate, aimed at assisting individuals on lower incomes who earn too much to qualify for social housing.
The initial 300 houses are located in Dungannon, with additional schemes planned this financial year in Newry, Craigavon, Lisburn, and Londonderry.
The minister, Gordon Lyons, described the new scheme as having
"the potential to be truly transformational".
Context of the Housing Crisis
Northern Ireland is currently experiencing a housing crisis, with the number of households on the social housing waiting list exceeding 50,000 earlier this year.
This waiting list has increased by more than 30% over the past decade.
Competition for housing has also contributed to community tensions, particularly as asylum hotels have been closed and individuals have been relocated into houses in multiple occupation (HMOs).
A fundamental cause of the crisis is the insufficient supply of new housing in both the private and social sectors.
Minister Lyons has developed a housing supply strategy, with affordable rent being one component of this plan.
Eligibility and Application Process
Eligibility for affordable rental properties will be determined based on income, and qualified applicants will be able to apply once the houses are advertised.
To qualify, a single adult household must have an annual income below £30,000, while two-adult households must earn less than £40,000 annually.
Funding Mechanism
The construction is primarily funded through £61 million of government spending known as Financial Transactions Capital (FTC).
Stormont departments are unable to spend FTC directly; instead, they must loan it to private sector organizations such as universities or housing associations.
Due to these conditions, departments have often found it challenging to utilize the funds fully and have returned unspent money to the UK Treasury.
In this instance, the Department for Communities is loaning the funds to Maple and May, the development division of the Choice housing association.
Lyons emphasized that the use of FTC funding for this scheme does not detract from grant funding allocated for conventional social housing development.
"Over time, as we increase the number of homes for affordable rent, it will reduce pressure on the social housing waiting list,"he added.
