Monday, 27 October 2025
Stormont Efforts to Secure NI Housing Executive Borrowing Powers “Hitting a Brick Wall,” Says Minister Efforts to secure new borrowing powers for the Northern Ireland Housing Executive (NIHE) are “hitting a brick wall,” according to Communities Minister Gordon Lyons. The DUP minister told the Northern Ireland Assembly’s communities committee that the proposal could be a […]
Efforts to secure new borrowing powers for the Northern Ireland Housing Executive (NIHE) are “hitting a brick wall,” according to Communities Minister Gordon Lyons.
The DUP minister told the Northern Ireland Assembly’s communities committee that the proposal could be a “huge game changer” in helping Stormont build and upgrade more social housing, but progress with the UK Treasury has stalled.
Stormont is currently funding work on about 1,000 new social houses this year, far short of the Northern Ireland Executive’s Programme for Government pledge to begin 5,850 new social homes by 2027.
Lyons said that allowing the Housing Executive to borrow independently would help meet these goals by providing direct access to capital for construction and renovation projects.
However, discussions with the Treasury have proven difficult. Lyons told MLAs that he continually encounters resistance from officials:
“I seem to continually come up against a brick wall on this,” he said. “A simple confirmation is needed from the UK government that what we are planning is allowed under Treasury rules, which we believe it is.”
Lyons added that some Treasury officials consider the matter “more complex,” expressing concern that NIHE borrowing could “add to the UK’s overall debt figures.”
A UK government spokesperson said the latest spending review provided the Northern Ireland Executive with a record settlement of about £19.3 billion per year.
They added that the Treasury had committed to beginning “immediate negotiations on a full fiscal framework for Northern Ireland,” which includes consideration of NIHE borrowing powers.
Lyons, however, said discussions were “going round in circles” and called for the issues to be “thrashed out” so the Executive could move forward.
Almost 50,000 applicants are currently on the social housing waiting list, underlining the scale of the challenge facing the Executive.
The minister described the deadlock as one of his “biggest frustrations” since taking office.
“This is a change that we need,” he told the committee. “I believe there’s an unnecessary hold-up.”
Seamus Leheny, from the Northern Ireland Federation of Housing Associations, said a “better approach” was needed to deliver new social homes.
“Issues include funding from the Executive, wastewater infrastructure, planning delays, and the availability of suitable land,” he said.
“The housing association model, which combines private finance with public funding, has worked well when adequately supported — and we want to see that expanded to build more homes.”
Justin Cartwright, National Director of the Chartered Institute of Housing (NI), said pressures on the region’s housing stock were “immense.”
He noted that significant additional finance was needed for NIHE to maintain and improve existing homes.
“Securing borrowing powers is only viable if NIHE has a sustainable financial model to back it up,” he said.
“Setting sustainable rents is crucial — balancing affordability for tenants with the long-term revenue needed to invest in and maintain homes.”
Cartwright added that this would help give lenders confidence that NIHE could “secure and repay the essential investment needed.”
Grainia Long, Chief Executive of the Northern Ireland Housing Executive, said her organisation was continuing to provide the Treasury and Stormont departments with the information required to advance the discussions.
“This is a crucial issue for our tenants whose homes urgently need improvement, as well as those on the waiting list,” she said.
“A change to borrowing arrangements, along with sustainable rents, would enable us to invest more in our current homes and, eventually, to build new housing. It would allow NIHE to operate more like public housing authorities elsewhere in the UK.”
Negotiations between the Department for Communities, HM Treasury, and other government departments are expected to continue as part of the new fiscal framework process.
For now, however, progress appears limited, leaving the Northern Ireland Housing Executive without the financial flexibility it needs to meet growing housing demand across the region.
The ongoing impasse over borrowing powers for the Northern Ireland Housing Executive highlights a critical tension between Stormont’s ambitions for housing reform and the fiscal constraints set by the UK Treasury. Without access to independent borrowing, the Executive faces significant challenges in meeting its social housing targets and addressing the needs of almost 50,000 people on the waiting list.
As discussions on a new fiscal framework continue, stakeholders across government and the housing sector agree that greater financial flexibility is essential to revitalise existing homes and expand supply. Resolving this issue will be pivotal, not only for tackling Northern Ireland’s housing shortage, but also for building a more sustainable and equitable future for its communities.
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