Written Ministerial Statement

The content of this written ministerial statement is as received at the time from the Minister. It has not been subject to the official reporting (Hansard) process.

Department for Communities

Update on approval for NI Housing Executive to purchase up to 600 homes for use as temporary accommodation

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Published at 10.00am on Wednesday 26 March 2025.

Mr Lyons (The Minister for Communities): Today, I wish to inform the Assembly that I have approved a proposal from the Northern Ireland Housing Executive to enable the purchase of up to 600 properties from the general housing market, over the next three years, for use as temporary accommodation.

As members will be aware our housing supply challenges are substantial and deep rooted. The Executive’s 15 year Housing Supply provides the long-term framework for the transformational change needed to tackle these challenges, but we have an immediate issue with increasing numbers of people, including many children, in temporary accommodation.  There is a widening gap between housing requirements and new housing supply.

On any given night the Housing Executive are currently placing in excess of 450 households in non-standard temporary accommodation (hotels and B&Bs). As I have said before, this is very unsuitable for people and families.

It also provides very poor value for money. In 2023/24 the Housing Executive spent just over £12.2 million on non-standard accommodation. This is unacceptable and represents a substantial, and unsustainable, increase from the position in 2017/18 when the figure was £668,425.

I have said since I came into office that I am determined to do things differently and look for alternative means by which to solve some of the most pressing issues that we face. That means identifying alternative and more financially sustainable options to tackle the increasing costs and unsuitability of temporary accommodation.

Therefore, I was pleased to approve the Housing Executive’s proposal to purchase additional properties for use as temporary accommodation. 

By reducing the use of, and reliance on, costly, non-standard accommodation,

the proposal will allow the NIHE to invest in prevention activity, supporting families experiencing, or at risk of homelessness. Households will benefit from increased stability and improved outcomes through placement in more appropriate housing.

The stock acquisition scheme will be managed and financed by the Housing Executive with funding drawn solely from the Landlord Reserve Account, with no additional contribution from my Department, or the Northern Ireland Executive.

My officials have worked closely with the Housing Executive to ensure that the proposals will not have any detrimental effect on either the Landlord position or tenants. Wider investment in the Housing Executive stock portfolio, all ongoing maintenance programmes and future planned investment schemes will continue as intended.

This investment will have a beneficial impact for those who are experiencing homelessness, but it will also save money.

It is estimated that the action that I am taking will have a significant impact on the NIHE Homelessness budget, providing an anticipated resource saving of circa £74.4m over 7 years.

I am committed to looking for innovative solutions which offer better outcomes for everyone in Northern Ireland and this is another example of how we are taking such action that will make a real difference to people in Northern Ireland.