Communities Minister Deirdre Hargey has approved additional funding of up to £15million to ensure stability in the social housing construction sector following recent volatility in the costs of materials.
Minister Hargey has stated that building more social homes, to the areas they are needed, is a priority as she works to address housing stress through the biggest reform of social housing in 50 years.
Minister Hargey said: “I have increased the support available to Housing Associations who are working with the construction sector to build new homes. This will take into account the increased costs affecting contractors through the unprecedented upsurge in material costs across the industry in recent months. This support is vital to ensure that we build more homes where they are needed.”
The Minister made the decision to approve additional Housing Association Grant to ensure the continued delivery of new social housing. Additional funding will be provided both for schemes which have started and schemes which are due to start in the coming months. The Housing Executive will now work with Housing Associations to establish the overall impact of these costs which may be up to £15m.
The Minister continued: “These measures will help address the concerns raised by the sector in relation to the recent volatility in construction costs. My priority is that the cost increases over recent months will not have an adverse effect on the number of new social homes delivered this year.
“Tackling housing stress is a priority for me and this increase is one step in achieving that.”