Building resilience in the social housing sector
As of early 2026, with nearly 50,000 households on the waiting list, the social housing sector is shifting into a phase of “achieving more with less” following changes to the Housing Association Grant (HAG) introduced on 1 December 2025, writes Seamus Leheny, Chief Executive of the Northern Ireland Federation of Housing Associations (NIFHA).
Northern Ireland’s housing associations are entering a pivotal year, balancing the urgent need for new social homes with a leaner fiscal reality. Average HAG funding has now dropped from 54 per cent to 46 per cent of total costs when building new social housing, meaning that housing associations must secure more private funding to bridge the gap. However, increasing the percentage of loans to deliver social and affordable housing increases debt, risk, repayment periods and additional interest repayments.
Every pound spent servicing debt is a pound diverted from building new homes, maintaining existing stock, or delivering vital tenant services. The impact on rent levels will also have to be considered, if housing associations are expected to increase debt in order to continue delivery of new homes while sustaining service quality.
Despite a challenging budget and ongoing construction cost inflation, the sector’s core ambition remains the continued delivery of social and affordable housing.
While the Programme for Government aims for at least 33,000 new social homes by 2039 and 5,850 social housing starts between 2024 and 2027, housing associations are currently navigating a Department for Communities subsidy review running parallel with a design review that will influence the delivery of new housing this year and beyond.
The sector’s ambitions for 2026/27 extend beyond new builds. Housing associations are prioritising the sustainability and quality of their existing 62,000+ homes.
Efforts are focused on retrofitting many older homes to reach SAP Band C by 2030, reducing fuel poverty and carbon emissions. Over 2024/25, our sector invested over £65 million in planned, cyclical and reactive maintenance (excluding capitalised improvements); a 12 per cent year-on-year increase driven by rising labour and material costs.
Housing associations will continue to be the primary delivery agent of social and affordable housing, but such investments must be balanced with maintaining the sustainability, safety and wellbeing of current homes and communities.
We stand at a definitive turning point over the next 12 months. The Housing Supply Strategy is not merely a policy framework, it is our blueprint to build a future where every person has a place to call home. This is an opportunity to enhance the partnership between housing associations and government, creating a collaborative approach that enables associations to invest in new housing without taking on unsustainable financial risks. By fostering a genuine partnership that protects, respects and enhances the sector’s abilities to finance and build, we will deliver more homes at the pace and quality required to meet our shared goals.
Seamus Leheny
Chief Executive
E: sleheny@nifha.org
6c Citylink Business Park, Albert Street, Belfast, BT12 4HQ
