£35m housing deficit will hit waiting lists

Published 22 Jan 2009 10:00 0 Comments

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Housing grants slashed by £1million

Only a fraction of the public housing planned for Fermanagh is being built.

A huge £35 million hole in its budget means the Housing Executive is having to make cuts that could impact on the hundreds of people on the waiting list for new homes, existing tenants awaiting repairs and renovations and home owners looking for grants to improve their sub-standard properties. It could also be bad news for the construction industry in Fermanagh.

The Executive had planned to start building 78 new houses in the county during the year to April.

However, a spokesman explained that the plans are being revised during the course of the year to take account of changing circumstances such as difficulties in obtaining suitable sites and planning permission as well as a lack of money.

Currently there are plans to build only half that number - 39. Work has started on five new homes but the future of the remainder is uncertain.

However, the Executive is to press ahead with plans to install oil-fire central heating in 104 houses in the Newtownbutler area despite the huge hole in its budget due to the collapse in the property market.

The £650,000 scheme was rescued from the rubble of the house price crash after Finance Minister Nigel Dodds allocated a further £10.5 million to the Executive after it was left facing a £35 million shortfall in its budget.

An Executive spokesman said: 'The Housing Executive is continuing to review its programmes for all areas, including Fermanagh, and details have yet to be finalised.'

'However, we can confirm that work will now proceed on the installation of oil fired central heating in 104 houses in Newtownbutler and surrounding area costing approximately £650,000, as a result of the additional funding.

'The Housing Executive can also confirm that in excess of £1.186 million was spent in Fermanagh from the beginning of the current financial year on heating schemes at Lisbellaw, Maguiresbridge and Brookeborough, and three kitchen improvement schemes at Belcoo, Kesh and at Drumawill, Drumbawn and Derrychara in Enniskillen.

'We can confirm that all emergency and urgent tenant repairs will be completed. Tenants who request routine repairs can expect some delay. We are committed to maintaining the adaptations programme for people with disabilities throughout the social and private housing sectors.,' he added.

While welcoming the £10.5 million of funding the Ulster Unionist MLA Tom Elliott said it could not disguise the 'huge black hole' in the Executive"s budget for this year.

'I fear it is too little and too late as many building contractors who previously carried out Housing Executive work have already laid off their workers due to the uncertainty surrounding future work,' he stated.

'The prospect of tenants getting much-needed heating schemes, kitchen replacements and the immediate maintenance required on many homes will be further delayed, despite this injection,' he added.

He said he feared home improvement grants would also be severely rationed in the coming year.

'We are continuing to paper over the cracks. What is required is the Executive to look at this serious problem and devote realistic funds to the housing sector, which could have a major impact on the construction industry, rather than the present drip feed approach,' he stated.

The Executive said the £35 million shortfall in its budget was 'caused by the collapse of the housing market and credit crunch'.

Around one-third of Executive spending is dependent upon revenue from house and land sales and 'this has all but dried up'. Two years ago it sold 2,021 homes and this generated an income of more than £100 million. This year the number of house sales will be closer to 50. A spokesman stated: 'Throughout we have been working alongside the Department for Social Development to minimise the impact of this in an attempt to keep vital housing programmes on track.'

The prospects for the future are bleak.

'Regrettably this shortfall looks set to continue until conditions in the housing market improve significantly. Based on this year"s position, the Housing Executive estimates capital receipts will be about £9 million in each of the next two financial years. This will leave a total shortfall of about £110 million in the housing budget,' the spokesman admitted.

This article appeared in Impartial Reporter 22 Jan 09

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