House of Commons Northern Ireland Affairs Committee

Social Housing Provision in Northern Ireland

Sixth Report of Session 2003–04

Volume II

Oral and written evidence

Ordered by The House of Commons to be printed 20 October 2004

HC 493-II Published on26October 2004 by authority of the House of Commons London: The Stationery Office Limited £20.50

The Northern Ireland Affairs Committee

The Northern Ireland Affairs Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Northern Ireland Office (but excluding individual cases and advice given by the Crown Solicitor); and other matters within the responsibilities of the Secretary of State for Northern Ireland (but excluding the expenditure, administration and policy of the Office of the Director of Public Prosecutions, Northern Ireland and the drafting of legislation by the Office of the Legislative Counsel).

Current membership Rt Hon Michael Mates, MP (Conservative, East Hampshire) (Chairman) Mr Adrian Bailey, MP (Labour / Co-operative, West Bromwich West) Mr Roy Beggs, MP (Ulster Unionist Party, East Antrim) Mr Tony Clarke, MP (Labour, Northampton South) (Chairman, Sub-committee) Mr Gregory Campbell MP (Democratic Unionist Party, East Londonderry) (appointed 4.05.04) Mr Stephen Hepburn, MP (Labour, Jarrow) (appointed 15.03.04) Mr Iain Luke, MP (Labour, Dundee East ) Mr Eddie McGrady, MP (Socialist Democratic Labour Party, South Down) Mr Stephen Pound, MP (Labour, Ealing North) Rev Martin Smyth, MP (Ulster Unionist Party, Belfast South) Mr Hugo Swire, MP (Conservative, East Devon) Mark Tami, MP (Labour, Alyn & Deeside) Mr Bill Tynan, MP (Labour, Hamilton South)

Powers The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the Internet via www.parliament.uk.

Publications The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at www.parliament.uk/parliamentary_committees/northern_ireland_affairs.cfm. A list of Reports of the committee in the present Parliament is at the back of this volume.

Committee staff The current staff of the Committee are Dr John Patterson (Clerk), Hugh Farren (Attached Clerk), Dr Aileen O’Neill (Committee Specialist), Tony Catinella (Committee Assistant), Janet Trevellyan (Secretary).

Contacts All correspondence should be addressed to the Clerk of the Northern Ireland Affairs Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 2172/3; the Committee’s email address is [email protected]

Witnesses

Wednesday 24 March 2004 Page

Mr Kieran Walsh, Mr Tony Ruddy, and Mr John Perry, Chartered Institute of Ev 5 Housing in Northern Ireland Wednesday 29 March 2004

Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning, and Mr Graham Ev 24 Murton, Northern Ireland Federation of Housing Associations Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler, and Ms Lynn Patterson, Co- Ev 44 Ownership Housing Association Tuesday 30 March 2004

Mr David Crothers, Mr Billy Graham, and Mr Jerome Burns, Department for Social Ev 71 Development Tuesday 27 April 2004

Mr Paddy McIntyre, Mr Stewart Cuddy, and Mr Colm McCaughley, Northern Ireland Ev 88 Housing Executive Ev 102 Mr Murray Watt, and Ms Hilary Kyle, Northern Ireland Tenants Action Project Wednesday 19 May 2004

Mr Pat Quinn and Mr Jim Thompson, Department of the Environment, and Mr Ev 116 Mike Thompson and Mr Des Stephen, Department for Regional Development Tuesday 15 June 2004

Professor Chris Paris and Mr Paddy Gray, School of the Built Environment, Ev 134 University of Ulster Ms Janet Hunter, Housing Rights Service, Mr Laurence Moffat, Shelter Northern Ireland, Ms Fiona Boyle, The Foyer Federation Northern Ireland Network, and Ev 161 Ms Carol O’Bryan, The Simon Community Wednesday 30 June 2004

Rt Hon. John Spellar MP, Minister of State, Northern Ireland Office, Mr Jerome Ev 173 Burns and Mr David Crothers, Department for Social Development

List of written evidence

1 Chartered Institute of Housing in Northern Ireland Ev 1 2 Chartered Institute of Housing in Northern Ireland, Supplementary memorandum Ev 17 3 Northern Ireland Federation of Housing Associations Ev 21 4 Northern Ireland Federation of Housing Associations, Supplementary memorandum Ev 34 5 Northern Ireland Federation of Housing Associations, Further supplementary memorandum Ev 36 6 Northern Ireland Co-Ownership Housing Association Ltd Ev 39 7 Department for Social Development Ev 54 8 Department for Social Development, Supplementary memorandum Ev 79 9 Northern Ireland Housing Executive Ev 80 10 Northern Ireland Housing Executive, Supplementary memorandum Ev 98 11 Northern Ireland Tenants Action Project and the Community Housing Network Ev 100 12 Department of the Environment Ev 112 13 Department for Regional Development Ev 114 14 School of the Built Environment, Faculty of Engineering, University of Ulster Ev 125 15 Mr Paddy Gray, University of Ulster Ev 129 16 Housing Rights Service Ev 147 17 Shelter Northern Ireland Ev 149 18 Foyer Federation Northern Ireland Network Ev 157 19 Simon Community Northern Ireland Ev 159 20 Equality Commission for Northern Ireland Ev 182 21 Professor Tom Woolley, Queens University, Belfast Ev 184 22 Northern Ireland Housing Council Ev 187 23 Alliance Party of Northern Ireland Ev 189 24 Housing Policy Review Group Ev 192 25 World Wildlife Fund Ev 193 26 General Consumer Council Northern Ireland Ev 195 27 Ulster Unionist Party Ev 196 28 Belfast City Council Ev 199 29 Construction Employers Federation Ev 201 30 Sinn Fein Ev 202 31 Professor Alan Murie, School of Public Policy, University of Birmingham Ev 204

List of unprinted written evidence

Additional papers have been received and have been reported to the House but to save printing costs they have not been printed and copies have been placed in the House of Commons library where they may be inspected by members. Copies are also in the Record Office, House of Lords and are available to the public for inspection. Requests for inspection should be addressed to the Record Office, House of Lords, London SW1. (Tel 020 7219 3074) Hours of inspection are from 9:30am to 5:00pm on Mondays to Fridays.

MBS Modular Building System Co-Ownership Housing Association Ulster Unionist Party Construction Employers Federation Greater Village Regeneration Trust

Northern Ireland Affairs Committee: Evidence Ev 1 Oral evidence

Taken before the Northern Ireland Affairs Committee (Northern Ireland Affairs Sub-Committee)

on Wednesday 24 March 2004

Members present:

Mr Tony Clarke, in the Chair

Mr Roy Beggs The Reverend Martin Smyth Mr Stephen Hepburn Mr Hugo Swire Mr Iain Luke Mark Tami Mr Stephen Pound

Memorandum submitted by the Chartered Institute of Housing in Northern Ireland

The Rising Demand for Social Housing The Northern Ireland Housing Market—Review and Perspectives 2004–07, produced by the Northern Ireland Housing Executive annually, accurately records the level of housing demand for social housing in Northern Ireland. The waiting list for Social Housing remained fairly static between 1993 and 2000 at 23,000 applicants. In November 2000 a new Common Selection Scheme was introduced for both Housing Executive and housing associations which resulted in a slight reduction in the number on the waiting list as it removed the double counting of those applicants registered for NIHE accommodation as well as with an individual housing association operating their own selection scheme. Since then there has been a continued rise in demand and by 2002 the number on the waiting list jumped to 26,000 and by March 2003 stood at 26,700. At the end of September 2003 there were over 27,600 applicants on the Common Waiting List. Analysis of the waiting list shows that it is dominated by three household types: singles (44%), small families (26%) and the elderly (19%). The rise in demand for social housing is primarily as a result of the increase in homelessness during 2002–03 with a total of 16,426 households presenting as homeless, which was a 16% increase over 2001–02. The main causes of homelessness continue to be as a result of a sharing breakdown or family dispute and marital/relationship breakdown. Other significant reasons for homelessness include accommodation no longer being “reasonable”, loss of private rented accommodation and intimidation. A recent national statistics publication by the Department for Social Development, Housing Statistics 2002–03, totals the social rented sector waiting list, including applicants as well as existing tenants seeking a transfer, at 40,453. Almost 50% of these applicants (18,895) are deemed to be in “housing stress”. The measure of “housing stress” further refines the overall demand for social housing into urgent need. Housing Stress is defined on the basis of an applicant with 30 or more points following an assessment by the Housing Executive of an application for accommodation. However, the head count of applications registered for accommodation is too simplistic a determination of demand and requires more robust consideration of the demographic and geographic analysis of need. Traditionally Northern Ireland has had a distinctive demographic structure in the context of the UK and the wider European Union. From the 2001 Census Northern Ireland has a relatively high proportion in the under 15 age group (23.6% compared to 20.1% in UK) and a relatively low percentage in the over 65 group (15.5% compared to 18% in UK). Northern Ireland has a much higher birth rate and below average death rate than the UK or EU. Key demographic trends from the Census show increase (6.8%) in population to 1.7 million, despite net out-migration of around 5,000. Strong growth in households at nearly three times the rate of population growth and average household size fell from 2.93 in 1991 to 2.65 in 2001. The proportion of single households increased to 27% and there are more lone parents with dependent children (9%) with a large fall in the proportion of married couples with at least one dependent child from 31.7% to 24.3%. There is also a falling birth rate, projected to continue to decline below the rate at which the population can sustain itself, and overall ageing which together imply the population of Northern Ireland to be both falling and ageing. Ev 2 Northern Ireland Affairs Committee: Evidence

Key trends from the Census highlight the declining proportion of children which undoubtedly will have an impact on the size and design of and the number of bedrooms in dwellings. In addition the steady rise in number and proportion of pensioners (in particular the rapid rise in the 75! age) will have important implications for not only the design of dwellings, but also the support funding and care packages required to enable these pensioners to live in comfort. Emerging from the 2001 census, the Department for Regional Development has examined its estimates for new housing in the period to 2015 and has assessed that a further 6,454 additional properties are required, making a total for projected housing need of 166,354 new dwellings. The oYcial target will be re- visited in 2006 as part of the formal five year review of the Regional Development Strategy. However there are significant sub-regional demographic variations which reinforce the need to take a “bottom up” perspective on local housing need. The younger population in the North and West and the South is likely to have fewer deaths and a higher rate of household formation compared to the older population profile of Belfast. Analysis of the Common Waiting List, however, shows the highest increase in “housing stress” tend to be in Belfast or at least within easy commuting distance of Belfast. The 12 NIHE Housing Management Districts with the highest proportional increase in housing stress over the last two years include North, South and East Belfast, Castlereagh, Newtownards, Bangor, Newtownabbey, Lisburn (1& 2), Newry, Dungannon, Downpatrick and Antrim. Analysis of housing need in Northern Ireland by demographic, geographic and household types provide important pointers to the level of future demand for social housing. The overall context of housing in Northern Ireland is one of a more private housing system with home ownership levels nearing 75% of households. Population projections and demographic trends indicate further growth in demand and need. However, some trends suggest that in the longer term there could be a falling rate of new household formation and reducing demand. There is likely to be less need for “family” accommodation in the social sector where there is an increasing need expressed by singles, lone parents and childless couples. Nevertheless, as the waiting lists and level of housing stress continues to rise it is important that a robust new social housing programme is maintained and supply of social housing is intensified.

The Continuing Decline in the Supply of Social Housing The factors that impact on the supply of social housing include the level of re-lets, the number of new build social housing units, new acquisitions, imbalance in supply and demand, and the impact of the House Sales Scheme. Housing need in the social rented sector is primarily met by re-letting existing dwellings to new applicants. In 2002–03 there were 8,766 allocations from the Common Waiting List and a further 3,384 transfers. The average number of re-lets over the last two years is around 8,000 per annum and although this figure is showing signs of increasing, it has proved insuYcient to curb the rise in both the demand for social housing and those assessed as being in housing stress. The continuing growth in the number of applicants on the waiting list and those in “housing stress” indicates that despite sustained economic growth in Northern Ireland over the past five years and the construction of record numbers of new private dwellings, there is an on-going shortfall in the supply of social housing and low cost aVordable housing in the private sector. The need for additional social housing is assessed by the NIHE on the basis of its “top down” strategic assessment of the need for social housing at the Northern Ireland level, together with the “bottom up” analysis of needs and demands expressed at a local level through the Common Waiting List and latent demand testing in rural areas. It is the Department for Social Development that has overall responsibility for new build provision and funding through the housing association movement. The DSD approves and manages the final programme and allocates schemes to individual housing associations. The housing associations build and manage the new dwellings. New social housing is no longer built by the Housing Executive as from 1998 the housing associations became the sole providers of new dwellings. This is not because housing associations had demanded this change or that it was believed that they could deliver the new build programme more eYciently than the NIHE, but simply because borrowing rules allowed housing association to access private monies to supplement capital grant without impacting on central government borrowing. For the last 10 years the Housing Executive has used the Net Stock Model, developed by the University of Ulster in 1994, as the starting point for developing the new social housing programme. This model was recently re-examined and compared with the “household headship and tenure split model” preferred in England and Wales. This research was undertaken by a team of researchers from the University of Ulster, University of Cambridge and Queen’s University, Belfast, and the models applied to Northern Ireland. The Net Stock Model indicated the need for an average annual social housing programme of 1,400 over the period 2001–11.The household headship/tenure model indicated the need for an average annual programme of around 1,500. However, neither model addressed the significant and growing gap between what is required (at least 5,250 units March 2001–March 2004) and what has been delivered (2,750). There is little doubt that the shortfall in additional social housing is an important contributory factor to the increase in Northern Ireland Affairs Committee: Evidence Ev 3

the level of demand and the numbers in housing stress. The Housing Executive estimates, using aggregate waiting list information, that to tackle the new build backlog from 2004–11 an on-going requirement for some 1,750–2,000 new units will be required each year. The DSD has identified a number of key problems in delivering the new build programme. Land availability, acquisition and price, planning and long lead in times were identified as significant factors. As a result new and improved management structures have been introduced, a more systematic approach to land identification and a greater role for the NIHE in identifying and securing land, anticipating building cost increases at an earlier stage and seeking out design and build opportunities in areas of housing stress. Practical action has also been taken to address the new build shortfall and the number of new build starts (669) has been supplemented through the “Acquisition of Satisfactory Housing” (ASH Scheme).In 2002–03 in addition to the new build completions, a further 147 dwellings were purchased “oV the shelf” on the open market in areas of high demand and a further 114 properties purchased for rehabilitation or improvement. However, this policy intervention is likely to be only a short-term solution as the eVect of this scheme on the local housing market in areas of high demand could be to reduce the availability of low cost aVordable housing, artificially inflate average purchase prices of other owner occupied dwellings, additional competition in the market, undermine strategic planning which encourages the development of mixed tenure balanced communities and drive economically active residents from housing estates. In addition the DSD has agreed to the removal of land cost restraints for new social dwellings on a scheme by scheme basis as part of the NIHE homeless strategy action plan. Another factor impacting on the social housing equation is the imbalance in supply and demand where there are an oversupply and vacant dwellings in one area but demand has collapsed, but these vacant dwellings cannot be simply transferred to areas of housing stress. This situation is further compounded when one factors in the level of segregation of social housing in Northern Ireland which in the past was seen as being too problematic to tackle, giving rise to the perception of a benign apartheid. While it is recognised that there is not a single housing policy solution to address segregation, following recent consultation on the “A Shared Future” document, the NIHE, in partnership with other agencies and government departments, is working to facilitate and encourage integrated housing, safe living and the management of contested environments. However, the main factor that impacts on the supply of social housing is the House Sales Scheme. Since its inception in 1979, the Housing Executive has sold over 106,000 properties and it has sold more properties to sitting tenants than it now manages. Last year there was a new peak for completed sales of 6,156 reflecting the number of applicants applying to buy to beat the deadline for the changes to the scheme which were introduced in September 2002. Even with these changes, which capped discount for the first time at £34,000, the Housing Executive continues to operate the most generous house sales scheme in the UK. With new build and new acquisitions totalling less than 1,000 units there has been a net loss of 5,000 social housing units last year alone, and this looks set to continue for the next five years. The Housing (NI) Order 2003 plans to extend the House Sales Scheme to all housing associations in Northern Ireland following a review of the operation of the scheme. While the CIH is not opposed to selling to sitting tenants we argue for a better balance between the aspirations of individual tenants and the needs of communities. The CIH recommends: — ending the obligation on the NIHE to sell under the House Sales Scheme; — allow house purchase policies for NIHE and housing associations to be decided according to local strategies; — allow discounts to be determined locally to reflect housing stress and demand; — allow NIHE to retain all future capital receipts for housing purposes; — introduce Quota selling to preserve a certain percentage of homes or particular types of stock; — protect rural areas through exempting settlements of population of less than 3,000; — condition of sale that property oVered back to former landlord; — ensure financial viability of existing associations by allowing exemptions for a specified number of years; — introduce transferable discounts for tenants in areas of high demand wishing to buy, allowing social housing property to be retained; — cost floor rule to include repair and maintenance in addition to capital costs; and — extend the three year clawback rule.

The CIH welcomes the fundamental review of House Sales Scheme which will examine the eVect of the House Sales Scheme on the nature and supply of Housing Executive properties and their ability to meet housing need, including any impact on waiting lists at local levels. It is clear that in many areas of Northern Ireland the supply of social housing is clearly inadequate to meet rising housing stress. Ev 4 Northern Ireland Affairs Committee: Evidence

The Quality of the Housing Stock At first glance the quality of housing in Northern Ireland is higher than the rest of the UK. However, strict reading of the headline unfitness levels and increased levels of new build construction, particularly in the private sector, disguise the work that still needs to be done and the resources required to improve and maintain housing condition in Northern Ireland. It is important to recognise that direct comparisons are often diYcult when comparing conditions and quality of housing stock in Northern Ireland with elsewhere. The base line construction base is diVerent in Northern Ireland, direct rule and the local Northern Ireland Assembly has allowed adoption and piloting of diVerent construction standards and property types. The first obvious housing quality diVerence between Northern Ireland and elsewhere is that in the 1970’s Northern Ireland retained Parker Morris standards. In England this design and space standard was diluted in a drive to achieve quantity rather than quality. In Northern Ireland this was thought to be short-sighted and a false economy which would require more expensive rehabilitation and improvement in the future. Also in Northern Ireland during the 1990’s we witnessed a number of common themes emerge from the strategic agenda overlap between health and housing. The move to Community Care and increasing demands for adaptations to assist people remaining in their own home highlighted the limitations inherent in existing housing stock. This led to the development of policies to improve housing quality and increase space standards, with evaluation in terms of health outcomes. Consequently, in 1998 the Social Housing Programme in Northern Ireland adopted Lifetime Homes. Lifetime Homes is a 17 point design solution to make the property more flexible, convenient, safe and accessible. The aim was to enhance the flexibility and adaptability of new dwellings through design, by anticipating the changing requirements of occupants and enabling the dwelling to be adapted at minimum cost. The CIH in Northern Ireland undertook a review of Lifetime Homes in Northern Ireland and found that while the introduction of Lifetime Homes for the social housing sector has had some impact, the greatest impact will be realised by extending these standards to the private sector, rather than persisting with a two tier system of property standards. However, in Northern Ireland we continue to build properties in the private sector at a lower standard than the social sector that we know will require expensive adaptations in the future. It is surely much more sensible to design out these faults at the construction stage. The CIH in Northern Ireland continues to work with the Joseph Rowntree Foundation and others in highlighting the limitations in our housing stock and argue that through timely action much of the expenditure currently being incurred in responding to the changing needs of an increasing proportion of our population could be largely avoidable in the future. There has, nevertheless, been much improvement across sectors in the overall quality of the housing stock in Northern Ireland. The 2001 House Condition Survey highlighted that of a total of 647,500 properties, more than a quarter were constructed after 1980 and indeed nearly 15% of the total stock had been built since 1990 as a result of the accelerated rate of construction in this period. This same survey showed sustained improvement in the level of unfitness from 7.3% in 1996 to 4.9%, which is on a par with the similar fitness reduction rate reported in the 2001 English House Condition Survey from 7.5% to 4.2%. However, 59% of dwellings in 2001 are estimated to have at least one repair fault and the total repair bill is estimated at £924 million. It is also worth noting that while in England and Wales the government introduced the “Decent Homes Standard” in 2002, this same standard has not been extended to Northern Ireland. The House Condition Survey 2001 did, however, include a comparison, had this standard been made applicable here, and it was found that 206,000 dwellings failed to meet the standard, including over 70,000 of the 100,000 Housing Executive properties. Most of these dwellings failed on the basis of thermal comfort criterion and the ineYciency of existing electric or solid fuel heating systems. The direct comparison using the Decent Homes Standard more accurately reflect the work that still needs to be done which it is estimated will require over £1 billion over the next three years to maintain the steady progress that has been made to reduce unfitness and improve housing conditions. Quality remains a cornerstone of social housing provision, construction and management in Northern Ireland. The Housing Executive has committed itself to embrace the principles of the Egan Report and has piloted partnering schemes in delivering heating and response maintenance contracts. There are plans to include adaptations contracts within the Egan contracting process. This same partnering arrangements are not yet been extended to housing associations in Northern Ireland. The NIHE continues to promote innovative technical standards, by consultation, encouraging consideration of design features such as visual impact, layout, landscaping and accessibility to key amenities. The Executive has also carried out pilot projects using new technologies with demonstration projects for solar water heating, Photovoltaic (solar electricity) and a new energy eYcient window system. Northern Ireland Affairs Committee: Evidence Ev 5

There are also examples of housing associations piloting sustainable housing solutions including piloting SMART homes and other assistive technologies. However, there are a number of related issues which impact on the demand supply and quality of social housing in Northern Ireland which will require policy intervention. The CIH recommends: — Planning Policy Statement 12 to be fully implemented to facilitate the provision of better local market intelligence through Housing Need Assessments. — House Sales Scheme to be reviewed. — Licensing scheme for whole private rented sector. — Lifetime Homes to be extended to all new build across sectors. — Decent Homes Standard to be extended to NI and attainment targets set. — Housing Task Force to be established for NI to investigate aVordability and sustainable home ownership. — Co-ownership to be supported and greater confidence in level of social housing grant each year to target the scheme as part of neighbourhood regeneration agenda. — Recommendations in Barker Review to be Northern Ireland “proofed”. 10 March 2004

Witnesses: Mr Kieran Walsh, Director, Mr Tony Ruddy, Chairman, and Mr John Perry, Consultant, Chartered Institute of Housing in Northern Ireland, examined.

Q1 Chairman: Gentlemen, you are very welcome. every two years and I think that is a way of keeping We have a number of questions. Obviously we are on top of how relevant the over-arching figure is. delighted that you have been able to join us to talk The most important thing is the bottom-up through your views on Northern Ireland’s housing approach to local housing need is and how it needs. This is the first formal evidence session that dovetails with the over-arching figure and both of we have taken. For the record, on the first occasion those elements would in fact lead to a robust you speak, would you give your name. I will begin by assessment of what the actual figure should be. We asking some general questions. At the moment, are suggesting that there is a need for about 1,750 to Northern Ireland uses the net stock model for 2,000 new social housing units per year over the next looking at the demands for social housing. How ten years. robust do you think that net stock model is? Mr Walsh: My name is Kieran Walsh and I am the Q2 Chairman: You are correct in saying that, if you Director of the Chartered Institute of Housing in look at the original model and even that that was Northern Ireland. John Perry is a policy adviser with reassessed, the diVerence in housing need changes the Institute and Tony Ruddy is the Chair of the from, say, 1,500 to 2,000, but you also may be Northern Ireland Board and Policy Board but is also perhaps not surprised that, when you asked tenants Director of ARK housing association and that is the bodies and community groups, there is a feeling that delegation before you this morning. The net stock that is an under-estimate and that the net stock model is a model that was developed by the model does not recognising housing stress and does University of Ulster in 1994. It is really a projection not recognise the true level of need and does not of household formation against population size and recognise overcrowding and the need for produces an over-arching figure of the number of particularly young families to move into their own social housing properties that are required. The net accommodation. Do you think that the recent re- stock model has been re-evaluated quite recently by examination took some of those issues into account a team from the University of Ulster, the Queen’s or do you think there continues to be a diVerence of University Belfast and the University of Cambridge, opinion between the net stock model’s count and the and assessed against the most frequently used model expectation of the community? here in England and indeed Wales which is the Mr Walsh: I think the real issue here is the short- headship tenure model which is based on average term needs that there are within individual age quartiles against population projection as well. communities against what the net stock model is Those two models actually show that there was a trying to do, a long-term projection of what the need great degree of consistency and the figures came out would be and whether it is achievable over a period at around 1,400/1,500. There are a number of people of time. If you look at the actual waiting list for who would suggest that the net stock model is not a accommodation, it is 28,000 of which over half are correct and useful model bearing in mind that, three deemed to be in housing stress, then it is very easily years ago, the application of the same model argued that the actual short-term need is to find suggested that, in Northern Ireland, we needed 2,100 accommodation for 16,000 people or families who units and the population has in fact increased from are now assessed or families that are assessed to be then. So, there are a number of assumptions that in need. But how that is going to be achieved over a have to be made. The recommendations from the period of time to meet continued need based on the report recently suggested that it needs to be reviewed population projections is the responsibility of both Ev 6 Northern Ireland Affairs Committee: Evidence

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry the department and the Housing Executive. I would new-build programme could be delivered outside of support some of the reservations that many of the that narrow confine or whether it should be either voluntary groups and tenant groups would have the Housing Executive or housing associations. because there are a number of assumptions that have Mr Perry: I am John Perry from CIH. Before to be made in the application of the model because coming on to that, I just want to make a point about it is not an exact science. As I say, the application is housing investment levels generally. It is interesting both the top-down approach through the model to compare the trends in Northern Ireland with the approach, both the headship tenure model that is trends in England. Until the last three years or so in used in England with the net stock model plus the England, the trend level of public investment in bottom-up local community needs which I think is in housing has been going down very sharply, right fact hitting a balance. When the various community from the mid-1970s to the end of the last century, if groups and others were invited to contribute to the you like. Whereas, in Northern Ireland, housing research because there was a semi-structured investment kept up at high levels throughout the interview process as part of the university’s research, 1980s and it was only then that it started to decline. some people raised criticism of the model. Very few That is why the Executive was able to build a lot of people actually came up with any alternatives that houses and meet the housing need during that period and, to some extent, why the capacity has fallen oV would in fact give a better application of what in fact since then, the investment levels have not been high would be the projected need over a period of time enough to sustain the programmes that are required. and, in the absence of something much more robust, I would have thought that the decision to both apply the net stock model and the headship tenure model Q4 Reverend Smyth: You did say that it was to free on the top-down approach with the bottom-up local up the Housing Executive because they were not in community is the best we have thus far. a position to borrow, but how far was it also to try to do away with the combining of some of the smaller housing associations which would not have been in Q3 Chairman: Even taking into account that very a position to do that? short discrepancy between 1,500 and 2,000, what we Mr Walsh: I do not think that that in fact has do know is that, whatever the need is, the repeated happened because we still have 38 housing failures year on year to meet social housing building associations plus Co-ownership Housing targets is putting a lot of stress on the waiting lists. Associations operating within Northern Ireland. What is your view about that repeated failure? Who These associations have not in fact amalgamated to any great extent. There have been a number of is at fault? mergers but they tend to have been local community Mr Walsh: A decision was taken back in 1997 that based where there has been an ongoing relationship the new-build providers of new social housing in and where economies of scale have been able to be Northern Ireland would be the housing association achieved. This was not part of an agenda to try and movement and the point we have made in our drive down the number of associations to 10 or 12 or written submission is that the reasoning behind that whatever. We still have 38 associations but each of was not because the association movement had the associations had to decide whether or not they asked for that or that anybody believed that the want to play the new development game by the new associations could deliver that programme better rules and many of the associations decided that they than the Housing Executive was the reasoning no longer wished to compete in the private sector behind that. It was solely because the housing new build to take on board that development role. association movement, because of the structures and Others actually decided that they would remain with organisation and how they were able to access the special needs niche, for example a number of the private moneys but with the way in which the homeless housing associations, but we have a Housing Executive is structured, any private situation where around 20 or so associations did in funding it would have to raise would reflect in the fact then decide that they wanted to be part of the public sector borrowing requirement. Therefore, development programme and they wanted to be in a this was purely to enable the public sector allocation position to bid for new-build schemes and those of capital moneys for new build to be stretched new-build schemes were, for many of the further because the associations have been able to associations, outside of their normal geographical bring in private finance. Last year, for example, area of operation. So, if there was some unwritten the new-build programme was £60 million. policy directive that this would lead to an The associations were able to levy in a further amalgamation or group structures being formed by £35 million. The department would not have had the associations, that in fact has not been the experience £95 million to allocate to the Housing Executive to and we still have 39 housing associations operating enable the required level of build to happen. It would in Northern Ireland. require a change in the structure and the make-up of the Housing Executive to enable them to borrow Q5 Reverend Smyth: Some of them have grown. outside the PSBR. That is a piece of work that we Mr Walsh: Yes because a number of them have have been looking at in the past and my colleague, actually shown that they have been able to John Perry, had in fact presented to the Social participate in a new-build programme with gusto Development Committee in Northern Ireland a and have developed those skills to enable them to do number of delivery options that looked at how the that. If you look at the scale, we are talking about in Northern Ireland Affairs Committee: Evidence Ev 7

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry total, the 38 housing associations have a stock level perceptions that they may or may not be up to it, but of less than 25,000, so the average amount of stock are you absolutely confident on the record that is less than 600. There are only six associations that housing associations, RSLs, can actually meet the have more than 1,000 units and more than 60% of demand for just under 2,000 units per annum in the stock is held within the five largest associations. the future? So, they would have the knowledge, skills and Mr Walsh: Yes but as a professional housing body wherewithal to be involved in much more of the where our membership base is individuals within development process than many of the smaller Northern Ireland, it is not for us to suggest that the locally based ones who would not necessarily have Housing Executive is a better model for delivering the skills. the new build target than the associations. The most important thing for us is that the number of Q6 Reverend Smyth: Have any of them been using properties required are delivered in the most cost- the DSD and others, encouraging the private sector eVective way providing value for money and at a through the PFI to build substantially new housing? time that meets the needs of the community. So, I am Mr Walsh: Any of the individual associations? not here to argue that the housing association is a better delivery model. But what we have done, which Q7 Reverend Smyth: Yes. is why I was bringing John in, is that we have Mr Walsh: PFI is one of the options that suggested to the department that there are ways and associations have. options of changing the structures of the Housing Executive that would allow it to borrow and would allow it to actually have access to private moneys Q8 Reverend Smyth: What I am getting at is, is that without unduly sacrificing, what is widely believed in being done through the Government or through the Northern Ireland to have been one of our successes Housing Executive which is not supposed to be involved in that sort of building or is it the housing within the last 30 years of the troubles within our associations? It is usually PFI and I am thinking of own community because of the responsibilities that particularly in South Belfast. vested in the Executive as a strategic housing Mr Walsh: The new-build programme is led out by authority. This has very largely depoliticised the Housing Executive deciding what that housing as an issue, but the existing rules do not programme of need would be because of the net allow the Executive to have access to the private stock model, what the local demand would be and funding without impacting on the overall borrowing setting out a programme. One of the deficiencies of requirement. how this was done in the past is that it was a three- year programme and that three-year programme Q10 Mr Pound: I appreciate that and it very much meant that, when there were diYculties with land parallels the situation in the rest of GB where it was acquisition, availability and cost, the lead-in times to felt in many cases that local authority housing actually start on the site meant that there were providers were not so cost eVective, there were cost slippages outside of that programme which has overruns, you know the story, and that RSLs were recently led to a reduction in the number of starts in better at commissioning and better at keeping to any particular year. The Housing Executive then timetables. I think we have moved a way from then determined what was required but it was up to the and you are in a unique position from where the department to then agree that programme and they three of you are sitting. Are you able to say in your then allocate schemes to individual associations. opinion whether you feel that social housing There have, as the Chairman has rightly said, been provision should, at least in part, revert to the Y a number of di culties in relation to achieving the Northern Ireland Housing Executive? I appreciate target, particularly since 2000 where the number of that is a political rather than a professional question. completions have dropped significantly from the Mr Perry: I think when we tried to open up the early years because the associations delivering the discussion about the future of the Executive about programme have until recently very much achieved three years ago, what we had in mind was more of a the annual target. However, I have to say that the mixed economy for housing investments in the problem is not simply because of a single issue in Province because it seems to make sense to make use relation to the associations not being up to it. The of the expertise in the Executive as well as the department, the Housing Executive and the housing expertise that resides in these associations rather associations have got together as a tripartite group than to have either one or the other and, as Kieran to identify the diYculties and one of the solutions is was explaining, one of the diYculties with the to extend the rolling programme to five years to associations is that only a handful really have the allow slippages and to allow advances within a capacity to undertake new development. So, given programme because the short three-year timeframe that you have quite a sizeable job on your hands and was in fact causing a diYculty. limited capacity, it would seem to us that it would make sense to try to use all of the mechanisms that Q9 Mr Pound: My question follows on from what are available rather than just one. you were just saying. I think it was back in 1996 that I was part of the policy review that decided to step back from new build and vested that responsibility Q11 Mr Pound: Who has responsibility for strategy with RSLs, housing associations. I appreciate the oversight and Province-wide policy formulation at point you have just made particularly with regard to the moment? Does anyone? Ev 8 Northern Ireland Affairs Committee: Evidence

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry

Mr Walsh: Policy formulation rests with the individual associations join the Institute, members department, but the Housing Executive have an of those organisations join and that is the strength of overall strategic responsibility and in tackling the Institute. housing need. So, they have to bring forward a programme that the department then agree and then Q15 Chairman: Mr Perry, it was mentioned that you allocate and issue and monitor with the associations. made a number of recommendations to the Each of the associations is actually going to the department. Of course, the department is not in a private market to borrow to supplement the actual position to respond to those at the moment but capital grant, but they are actually going with could we ask for those to be repeated to us in order limited appeal to lenders because their stock levels that we can put those to ministers as part of our are quite small. If the Housing Executive with a inquiry. stock base of just less than 100,000 was actually Mr Perry: What would probably be helpful is if we going to the market to be able to borrow to arrange to send you a copy of the paper that we complement an overall development strategy for produced at that time1. What we were really trying Northern Ireland, I think more attractive rates of to do was to open up the discussion about the future interest would be forthcoming. That would allow the of the Executive because it was known that, at that development to happen and even the allocation of time, the Executive itself had commissioned studies the building programme could in fact continue with looking at options, which I do not think were ever both an amalgam of the associations with their local made public. So, we were trying to draw them out, community involvement and the Housing as it were, and have a debate about the future of the Executive, but where has been a central pot actually Executive really looking at it in relation to the sorts established on the basis of the collective asset that of models that were being examined not just in would allow borrowing to be much more attractive England but in Scotland as well and seeing whether rather than individual associations competing for any of those models might be appropriate in the individual schemes. Northern Ireland context. Chairman: That would be very helpful. Q12 Mr Pound: I think you mentioned 38 associations. Q16 Mr Beggs: Are there any short-term measures Mr Walsh: Thirty-eight associations, yes. that could be taken to address the need for social housing? Q13 Mr Pound: Is there an approximate average for Mr Walsh: I have to say that the Housing Executive, the number of units in management and ownership the Department and the associations coming in each of those or do they vary massively and together have endeavoured to address the shortfall dramatically? in supply by introducing a number of short-term Mr Walsh: The largest five account for 60% of the measures. One of those has been the introduction of housing assoications 25,000 units. the Existing Satisfactory Housing Scheme which has Mr Perry: May I just add something to your allowed the associations to go into particular areas question about the strategic role because, as of high demand to acquire properties which has been somebody based in England rather than in Northern able to tackle local need to supplement the shortfall Ireland, it does seem to be an interesting issue for the in the new build. In our paper, we have suggested Committee to investigate. The Executive has built that that has been useful and welcome but we view up a strong knowledge base, probably stronger than this only as a short-term solution because it could its equivalent bodies in England, Scotland and have long-term impact for issues of aVordability and Wales. So, I do think there is an issue about where indeed mixed tenure in certain areas. I have to say the strategic responsibility lies in practice. It seems to that the department, the Executive and the be determined quite strongly by the Executive associations coming together have very clearly because of the research work and policy work that identified what the shortcomings have been in they do. relation to land cost, land availability and long lead- in times that have led to the current crisis in the Q14 Mr Pound: Is the Institute drawn into this number of completions in past few years. Action has process? As the practitioners and professionals, are been taken across a wide range of areas. For you involved in consultation on policy formulation? example, the Housing Executive’s role in land Mr Walsh: Yes, we are and, in the past, we have assembly, the longer lead-in time and the roll-on given evidence to the Social Development programme etc which I think will ensure that, over Committee as well as working on particular projects the short term, the associations will get back on for the department and others on specific policy track in delivering the number of properties that the matters. But we are an honest broker in that process programme and the funding is there for. in that we are not in one particular camp or another but the important thing is the well being of our Q17 Mr Beggs: In April 2001, the Institute urged the community and that is the overriding mission that Northern Ireland Housing Executive and DSD to drives the individual members of the Institute. The publish the consultant’s report of a jointly CIH is an individual professional body, it is not commissioned research project examining the future organisational, so while we receive support from the options for investment and management of social Department, the Housing Executive and associations, it is not as if the Housing Executive or 1 Not printed. Northern Ireland Affairs Committee: Evidence Ev 9

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry housing in Northern Ireland. Almost three years there is some sort of supplementary private finance later, are you concerned that a report, that was the coming in, I do not think that we would see a return HACAS Chapman Hendy report, looking at this to those days that the public purse on its own could vital area has still not been published? support the social housing new build provision. Mr Perry: Yes. That is what I was referring to earlier. We tried to draw them out with the paper Q20 Reverend Smyth: I take it that the social housing that we produced and published. We suggested that provision see the public sector and rents have been there were five or six diVerent options for the future applied back in maintenance grants, improvements, of the Executive, not that necessarily any of them repairs and so on or has that also been siphoned oV? was a particularly better option than retaining the Mr Walsh: No. The Housing Executive have to put status quo, but we felt that they were worth forward their own business plans of what their examining to see if there were pros and cons about budget requirement is on maintenance and repairs heading in diVerent directions. I think we regret the and other revenue costs. On capital costs, they fact that there was not a debate about it, that this actually need to pull down moneys from the consultancy report was done but that there was not allocation that they get from the department and a subsequent discussion. from Treasury and therefore the Housing Executive’s overall spending plan, both revenue and Q18 Chairman: Did they give you reasons why they capital, is supplemented by the income from rents were not willing to put it in the public domain? but also from, on the capital side, the capital receipts Mr Walsh: No. from house sales and the sale of other properties and land that go to supplement that. There is an assumption on the number of properties that are Q19 Reverend Smyth: You have already outlined the going to be sold by the Housing Executive in any one reason for changes from the Housing Executive year that will be ploughed back into the Treasury. funding in the past, but I want to press you. Is a Any moneys that are gained over and above that traditional model of direct public intervention more figure are ploughed back into the Central Treasury. likely than the current mixed funding regime? Is that That figure last year amounted to £35 million, over more likely to ensure that social housing new-build the last number of years, has amounted to over programme targets are hit? £150 million pounds. Mr Perry: In a sense, yes, but only if you assume that there are no constraints on public expenditure and this is the diYculty, is it not? In the English context Q21 Reverend Smyth: Would I be right inferring that where housing associations have engaged in quite you would argue that there is a case for ring-fencing serious volume in new build and are building far capital and rent to maintain a vibrant social sector? more than they were prior to the introduction of Mr Walsh: The Housing Executive, unlike many of private finance in the late 1980s, they have now the local authorities in England during the same drawn in over £30 billion worth of private finance to period of time, were able to benefit from ring-fencing supplement the public finance that they can get. You their capital receipts. If we were able to return to can have an argument about whether the division that, and I do not believe that there is a will within between public and private finance is right but, given the Treasury within Northern Ireland to allow that the framework that applies across the UK, there is money that has now been used for other areas of no doubt that more houses are being built with the social provision like hospitals, education etc, would available money through that model than would be lost. The Government would not want to lose that have been the case otherwise and the same applies in windfall that helped supplement other areas of need Northern Ireland. and I cannot believe that the Department of Social Mr Walsh: Could I add that we are also in a situation Development would win that argument with where, because of the robustness of the house sale Finance. scheme that the Housing Executive operated for some years, they were able to ring-fence that money Q22 Reverend Smyth: I understand that answer but to be redirected into their own budget but, over the that was not the question that I asked! last number of years, that has not been the case. So, Mr Walsh: I think there are some things that are it is interesting, for example, that the Housing worth fighting for with the likelihood of winning, Executive this year returned £35 million back into but I cannot see that we would win that, no matter the Northern Ireland public expenditure purse for how much we would like to be able to say that all allocation across other departments and that is the capital receipts should be ring-fenced. I think same level of private finance that the associations realistically, in the climate we are operating in, that have had to pull down this year. That money has in money would simply not be ring-fenced for housing fact been lost to housing per se. It is still being used alone. The argument has already been lost in in other departments, in hospitals, in schools and England where many of the local authorities where there is still an issue there, but that clawback is still maybe there was not a housing demand, they were equivalent to the level of private finance required to not able to simply hold on to their capital receipts supplement the capital budget. Unless you are in a but it had to be returned for redistribution. I cannot situation that we were able to say that the public imagine that the situation in Northern Ireland funding was going to be there to oVset the total would be allowed to be diVerent when that windfall resources that are needed for new-build capital from house sales can help supplement other areas improvements and other expenditures, then, unless of need. Ev 10 Northern Ireland Affairs Committee: Evidence

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry

Mr Perry: There is an argument in England for The Committee suspended from 4.16 pm to 4.37 pm doing what is done with capital receipts because you for a division in the House are robbing Peter to pay Paul. You are redistributing whereas the big advantage in Northern Ireland is that decision-making is centralised. It is a Q25 Chairman: Mr Walsh, when we were rudely disadvantage in some respects but, in this respect, it interrupted, the Reverend Martin Smyth had just is an advantage. I think what we would advocate is asked you what opportunities existed for private finance to contribute to the demands for social and at least transparency, so that if a certain level of V receipts is coming in that is being used for other a ordable housing in Northern Ireland. purposes, then that is an explicit decision rather than Mr Walsh: I think the Reverend Martin Smyth was just something that is fudged, which is the case both referring to the escalating property values within his across the other side of the sea and on this side of own constituency in South Belfast that is putting the sea. those properties outside of the normal mortgage and mortgageability of young people to get a first step on the home ownership ladder. It still remains the Q23 Reverend Smyth: I am thinking of one preferred option and aspiration for most people to particular contract going on at the moment, or at become a home owner. There has been a scheme in least I hope will be going on at the moment, and, in Northern Ireland that has been in operation for that contract, they refer to 20% for social housing. some 25 years now that has aided some 18,000 In the light of your understanding, is that something people to gain a first step on the road to owner that the Housing Executive has had placed upon occupation through the co-ownership scheme. As I them because they were building on land owned have said, they have helped 18,000 people. Bearing originally by the Housing Executive or is it window in mind that 38 housing associations have a total dressing for the good in the knowledge that, in the stock of just over 23,000, one housing association, end, the properties are going to be developed? the Northern Ireland Co-ownership Housing Mr Walsh: I do not know the specific scheme but I Association, has in fact helped an additional 18,000 would have to say that it would be incumbent on the people who otherwise would have no other recourse Housing Executive to try and make best use of the but to apply to the Housing Executive for social assets that they have. For example, if they had land housing accommodation. It works as a part-buy/ in an area where they did not necessarily have an part-rent scheme. There are maximum property unmet social housing demand but there was a values and, within Belfast for example, the private developer who was able and willing to come maximum property value is £102,000 for three bed on to develop, for example, owner-occupied accommodation. The average purchase price properties for sale and there was some sort of throughout Northern Ireland is now peaking at over planning gain in that, as part of that development, £100,000 for the first time and, in your constituency 20% of the number of properties could be allocated area, Reverend Smyth, many of the properties are to social housing. By doing that, that would not much, much higher than that. There needs to be an aVect the capital funding from the department to the opportunity to amend those property values to more associations to deliver new social housing. If this is accurately reflect local markets and not just the packaged in such a way, I would have thought it wider council area markets. For example, if there are would be good practice for the Housing Executive to hotspots within particular councils, like in areas of make best use of their land where they could in fact South Belfast, there could in fact be a point at do so by looking at mixed tenure, mixed community £140,000, for example, where flexibility would allow and maybe mixed household types. some of the people in your particular area to have access to accommodation through Co-ownership to remain within the community in which they are Q24 Reverend Smyth: Of course, you did use the currently based. The Co-ownership scheme can be qualification if there was no social need. The issue of made more strategic. I think it is one way that will course, as your long-term experience would know, is allow people to get access to owner occupation who that you do not have housing waiting lists because otherwise will add to the pressure on our waiting list. there is no availability of housing and there is no point in people putting themselves on that waiting list when they know there is no housing. Q26 Mr Hepburn: Is 100% of the capital received Mr Walsh: Yes. reusable? Mr Walsh: No, up to a particular level. I am sorry, Reverend Smyth: We have been in this world for a are you talking about co-ownership? long time and we know the issue. Can I press you a little further. What opportunities exist for private finance to contribute to addressing the demand for Q27 Mr Hepburn: No, I am talking about the money social and aVordable housing in Northern Ireland? I received from the sale of social housing. Is 100% of take, for example, my own constituency where some that capital received reusable? of the housing costs have gone up tremendously and Mr Walsh: In the past it was but, over the last young professionals find it diYcult to even get on the number of years, the Department has put down a first rung. What do you think might be done to help marker of how much they would hope to achieve through private finance? through house sales and anything over that which is Chairman: Mr Walsh, we are going to leave you to a capital gain above that particular target is actually ponder that answer! ploughed back in for use by other departments. Northern Ireland Affairs Committee: Evidence Ev 11

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry

Q28 Mr Hepburn: Is it 100% of the sale of the exercise their right to buy to maybe move out and property? The council sell social housing and an buy another property in the private sector, but leave individual house is worth £50,000. If they sell that, the social rented house, leave the Housing Executive does that £50,000 get used immediately, all 100% or housing association house, for allocation to of it? someone in need, someone who is in a hotel or in Mr Walsh: Yes, up to the cap that they have. If some other temporary accommodation who are £50,000 is the discounted value of the property that homeless. I think that if we continue to simply argue has in fact been sold. This is dependent on whatever that it is equitable to give all tenants a right to buy, discount the tenant has been entitled to because the the consequence of that policy is that we will no discount in Northern Ireland is £34,000, which was longer have suYcient stock to actually meet those only capped from two years ago and, prior to that it needs. The home ownership taskforce that was was 60%. There have been occasions where established by the OYce of the Deputy Prime properties have been sold by the Housing Executive Minister under the chairmanship of Baroness Dean to sitting tenants that were valued at over £300,000 recognised the shortcomings that there were in because of the land around the particular property relation to house sales schemes, the issue of demand, and the development potential but people were how it needs to be linked better in to the Right to entitled to up to 60% discount. All that money is Acquire that is available to housing associations and ploughed back into the capital allocation up to a how they need to look at other ways of trying to certain cap. So, if it is anticipated that there will be develop areas of mixed tenure. For example, equity 4,000 house sales that will generate £30 million, then loans. One final point I would make is that the that £30 million is deemed to be part of the Institute in its presentation to the Social allocation that is going to the Housing Executive for Development Committee made recommendations that year. Anything above that cap is the capital into the changes and the review of the house sales gain, so if more than 4,000 properties have been sold, scheme that would be required in Northern Ireland. and last year there were nearly 6,200 properties In the Inquiry report from the DSD Committee, sold—that excess money from capital receipts they commented that a review should be undertaken actually goes back to be redistributed. So, it is 100% in line with the recommendations made by the CIH. up to that level that is taken to be the capital receipt. In the second reading of the Housing Bill in July If, for example, next year there were only 3,000 but 2002, the then minister, Mr Dodds, actually again it was anticipated that there was going to be 4,000, it made reference to the recommendations that the would be interesting to see whether or not the DSD Institute had made to the Committee contained as would be able to give additional funding to allow part of that report for the requirement for a review them to enhance the level of funding because of the of the house sales scheme. While we have heard that shortfall. this review is due, we do not know when it is likely to happen, what the brief is going to be and who else is going to be involved in it, but we welcome a Q29 Mr Luke: Just to pick up on some of the issues strategic look at how house sales will impact on which Stephen has raised, one area of housing that future demand. is controversial on both sides of the water is the whole issue of the house sales scheme. I understand that the Executive has sold more houses than are Q30 Mr Luke: Is it your belief that this policy of being built and you have mentioned the figure of promoting home ownership has been done at the 6,000, so a housing area district every year has been expense of ruining the social housing in the sold oV. You have made 11 recommendations to the Province? Committee about changes relating to the reform of Mr Perry: The diYculty is really this blanket the house sales scheme. Is there any evidence that the approach, whether it is this side of the Irish Sea or changes you are proposing will have a significant your side of the Irish Sea as it were, and what we are eVect on addressing this lack of social housing or the advocating is a much more selective approach. real need and the growing need for social housing There is nothing wrong with selling houses to sitting that there is in Northern Ireland? tenants but you need to do that in a more strategic Mr Walsh: I think the obvious answer to that is way, decide which areas would benefit from mixed “yes”. If you are losing 6,000 units of tenure and which areas would be under such intense accommodation each year at a time when you are pressure for social housing that there ought to be an only building 1,000 units, the net loss is 5,000 units. embargo on further sales. There is also the argument It is not rocket science to then recognise that if the from supporters of right to buy that the people who Housing Executive has an asset base of 95,000, if are buying would stay in those properties anyway, so they continue to lose 5,000 units a year, in 10 years, they would not really become available for letting to their stock level is 45,000 units. We cannot continue the Executive, but the fact is that some people would to run a scheme whereby there is a net loss to the buy elsewhere and those that would stay would social housing provision at a time of escalating eventually move. So, if you are pursuing a right to waiting list. We have been arguing that the House buy policy over a long period of time, you do lose Sales Scheme needs to become much more strategic. real potential re-lets and now, as it were, the It could be used as a way to develop mixed tenure, it chickens are coming homes to roost. is used as a way to retain particular types of Mr Walsh: This was also an important issue for the accommodation that are in short supply in areas of Scottish Parliament in that the house sales policy high demand and to encourage people who want to was a particularly emotive issue in Scotland. It Ev 12 Northern Ireland Affairs Committee: Evidence

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry ended with a capping at a level that was not seen to am sure that a greater number of houses have been be a capital gain at around £12,000 and exempting purchased rather than flats; what sort of eVect has geographical areas on the basis of a line on the map that had on rehousing of families? and therefore looking at how to roll-out the scheme Mr Walsh: My understanding of the impact in losing strategically, to encourage it in areas where you are that stock so that they are no longer within the looking to increase mixed tenure but to prevent it control of the Housing Executive in overall terms of happening in areas where particular properties are in community development and anti-social behaviour short supply. In Northern Ireland, they are planning within those communities. However, the Housing to extend, as part of the Housing (NI) Order 2003, Executive as the strategic regional housing authority the right to buy for housing associations tenants on for Northern Ireland still retains that responsibility the basis of equity that, if you are a social housing beyond simply the management of single units of tenant, you should have the same rights. It is stock, so it has a much more wide-ranging role and interesting that, under the existing scheme, responsibility than simply a housing management properties that have been built or allocated function. As part of that, the Housing Executive has exclusively to elderly people are exempt from the a very serious role in both community development, scheme. So, it is diYcult to argue that it is going to producing balanced communities and responding to be equal for everybody but not elderly people. You local need. It also now has the responsibility through need to actually have a fundamental look at all the its cross-tenure role on strategic responsibility for issues before deciding on which scheme is most the private rental sector. So, for example, in the 2003 applicable. We also have to recognise the Housing Order, there is a mandatory licensing sensitivities that there might be in the operation of a scheme for housing in multiple occupation. It falls to selective house sales policy in Northern Ireland the Housing Executive to run out this mandatory because, in areas of higher demand, it could in fact scheme which is there to improve fitness levels and be Catholic or Protestant areas, you may in fact be management standards within that particular sector developing a policy that might be seen to give undue and it will be rolled out by the middle of this year. bias towards one section of the community over From the Institute’s perspective, the Housing another. So, the equality issue has to be very much Executive’s proposals for the licensing of the HMO to the fore whichever scheme is actually brought element of the private rental sector are somewhat forward. Sometimes it is easier to be seen to fair to passive in that we feel there is an opportunity in everybody rather than have something that is Northern Ireland for regulation of the whole sector strategic that is going to be in the long-term good for through licensing for the whole controlled and all of us, particularly for those having to wait for uncontrolled private rental sector, rather than years for suitable accommodation. targeting HMOs about their level of fitness and, more importantly, management standards. What is Q31 Mr Luke: On the point you made about the the diVerence between a two-storey house with three actual resale, it is my understanding that 25% of the people sharing and an elderly person who is living social housing has been sold on and that has an next door but is not getting the same level of fitness impact on what can be seen as aVordable housing or repair and improvement work carried out or stock. management standards yet has the same landlord? Mr Walsh: Yes, that is right because of the resale of Licensing is going to be applied to one and not the properties that have already been bought. It does other. I think within Northern Ireland we have an impact on aVordability in certain areas because of opportunity because of the size of the sector to look the resale value but there are ways of actually at mandatory licensing for the whole private rental looking at other models that would allow that to sector that will be a kite mark of quality for the happen through transferable discount to enable a people who are letting those properties who want to person to actually move out in order that you retain provide a quality product of fit accommodation, a the particular social housing property for allocation. decent home and it will properly manage that It cannot be one simple policy, it has to be strategic property. Part of that property management is that on the basis of how that would benefit our whole they accept responsibility for the behaviour of their community rather than just some areas and some tenants. The issues of anti-social behaviour that tenants. impact on the community that are outside of the actual landlord responsibility that the Executive Q32 Mr Hepburn: I will ask you these questions en would have but could be controlled by the removal bloc because I am conscious that there could be a of a licence to say, “We will no longer kite mark the vote at 5.15. As far as the Northern Ireland Housing services you provide and indeed we will no longer Executive is concerned and the sale of properties pay housing benefit for your continued occupation which is obviously causing some concern, what of certain tenants in that particular property because implications does it have on the role of the of the problems that they cause.” One final thing I management in general of social housing and what would add is that, again the 2003 Housing Order eVect on the role does it have on the Northern introduced some new measures in tackling anti- Ireland Housing Executive? Also, traditionally, I social behaviour but they fell short of what the CIH believe that the Northern Ireland Housing Executive and others were calling for because the debate on had a role in community development in tackling anti-social behaviour had moved on in England and anti-social behaviour; how has it aVected that elsewhere from 1996 from the housing policy review particular situation? Of course, like everywhere, I that the member referred to earlier on. What we Northern Ireland Affairs Committee: Evidence Ev 13

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry actually have in Northern Ireland were the changes lenders, legal profession etc that have simplified that were being introduced in England in 1996. So, that. The diYculty is that there are other shared Anti-Social Behaviour Orders and, I believe more ownership options that we do not currently have importantly, Acceptable Behaviour Contracts available in Northern Ireland that could be looked which are not about exclusion but about trying to at. Also Co-ownership needs to become more give responsibility to young people to give an strategic in that, rather than it being a demand-led undertaking not repeat the unacceptable behaviour, product because somebody who wants to apply for are not available in Northern Ireland. I think that co-ownership actually comes in through the front extending those to Northern Ireland will increase the door, it could in fact be made to try and tackle the range of options that the Housing Executive, housing need of people who are currently on the councils and others would have to tackle the very waiting list or transfer list and to look at areas of serious issue of youths causing annoyance and aVordability hotspots etc. They also need to look at antisocial behaviour. the application of the Homebuy scheme and other Mr Beggs: For the record, the minister did give his products that may in fact be of benefit if applied in assurance that these orders would be applied by the Northern Ireland. The strength is that we have one end of the summer in Northern Ireland. organisation doing shared ownership and we do not have a plethora of diVerent organisations and there Q33 Chairman: Not a day too soon! is a strength in asking that organisation to evaluate Mr Walsh: The one comment I would make is that how these products could be applicable in because of the procedures that now operate in Northern Ireland. Northern Ireland because we do not have devolution, such measures would have to be brought forward as an order in council. This means that Q36 Reverend Smyth: Reference has been made to having been brought forward as an order in council, the Barker review which was published last week; until we actually see the detail, we either have to have you had an opportunity to look at it at all? accept the whole package or nothing. While we can Mr Perry: The main strength we drew from the be assured that the minister has in fact made this Barker review was the prominence which Kate commitment to actually introduce these measures, Barker gave to the need for more investment in really unless we are in a position to scrutinise how in aVordable housing and she was talking in the fact that is going to work, I think we are placed in a English context because part of her review was just situation of jumping quickly without looking at the concerned with England but some of it with the detail. whole of the UK but, as we have been discussing, a similar review applied to Northern Ireland would Q34 Reverend Smyth: You will have had the reveal an extra need for aVordable housing there opportunity to study the low cost housing survey too. The problem was that Kate Barker found that which was published in November. Which, if any, of she could not cope with dealing with the whole of the the options there might actually help provide social UK even though it was her original remit, so she housing in Northern Ireland. focused very much on dealing with England and the Mr Walsh: Is this the Baroness Dean’s home demand area that was part of England. It would be ownership taskforce? very good if the Barker review could be revisited to Chairman: The Barker review. look at how it applies in Northern Ireland and Reverend Smyth: The Barker review is later. indeed in Wales and Scotland and see whether the measures advocated would apply there and, if so, in Q35 Chairman: Yes, it was Baroness Dean’s. what particular way they would be of most value in Mr Walsh: Yes, we have had an opportunity and in Northern Ireland. fact our Director of Policy at the Institute was a Mr Walsh: There are a number of specific proposals member of the taskforce and we are very pleased to and recommendations that have been made about be involved at the centre of rolling that out. There trying to speed up the overall planning process about are a number of the recommendations within the the roles of councils and councillors having made the Report that we believe should be Northern Ireland planning decision, so that schemes do not have to go proofed and should be looked at as to how applicable they could be in Northern Ireland. For back to the revisited. Some of those issues would be example, Co-ownership is the most successful very important in trying to move forward the shared ownership scheme in the UK. We have one planning process and therefore cut the delays and national organisation responsible for running out lead-in times about getting schemes on the ground in the scheme. The deficiencies that were recognised by a timely fashion. I think that a number of those Baroness Dean and that taskforce showed that there recommendations would have implications for the was not a critical capacity/critical mass in many of more speedy delivery of social housing and indeed the smaller shared ownership schemes that were private sector housing and low-cost aVordable operated by associations in the UK because it was housing in Northern Ireland. peripheral to their overall business which was Mr Pound: Is it possible, for the record, to flag up managing units of social housing to deal with people that fact that John Perry gave us because I think it is in need and shared ownership schemes tend to be an crucially important? add on. In Northern Ireland for the last 25 years, we Chairman: The Barker review being balanced have had one organisation dealing directly with against Northern Ireland. Ev 14 Northern Ireland Affairs Committee: Evidence

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry

Mr Pound: I would not say it was balanced against flats in a certain area to meet the current short-term Northern Ireland, I would say it concentrated need of an increasing number of single people who almost entirely on the south east of England but, want to have their own properties to set up home at because of some of the fiscal mechanisms proposed an earlier stage. Density is actually controlled by the in there, I think it is something we should urgently planning authority; they actually determine the consider in the context of Northern Ireland and I number of properties within a hectare. think that perhaps a note from the Committee is something we should consider afterwards and I am Q39 Mr Pound: The Chairman was asking if you had simply putting up a marker at this stage. Forgive me any views on current planning legislation and for interrupting. whether you felt that a similar move would be helpful. Q37 Chairman: Mr Walsh, you very timely moved us Mr Perry: I do not think that you have the same on to the issues of planning. We have focused so far high-pressure situation that applies. Obviously in on the Executive and on housing associations but the London, that is a very critical issue and in parts of planners themselves and the planning system can the south east, but I do not think in England it is that inhibit developments. Are there any changes that the critical an issue outside the south east, except for Institute would like to see made to the planning some patches of Belfast, that you would not really system in order to facilitate development of more have a need to go for very much higher density. social and aVordable housing? Mr Walsh: The important change we in fact propose Q40 Mr Pound: You have talked about the waiting is the speedy implementation of Planning Policy list and is that about 28,000? Statement 12. It has been proposed and brought Mr Walsh: Yes. forward as part of the Regional Planning Strategy with the requirement to look at housing in Q41 Mr Pound: Do you know what percentage of settlements rather than looking at housing being those are single-person households? tenure based, tenure driven and number of social Mr Walsh: I believe 44%. housing or whatever. PPS12 will have significant implications for the development of mixed tenure in Q42 Mr Pound: I gave you no notice of that balanced communities in Northern Ireland. It has question! Those 44% would probably not even been consulted upon. It was expected to be feature on a GB housing waiting list or certainly not introduced in September 2003; it has still not come in London. out of the machinery of government which includes Mr Walsh: No, but in other areas of England they the DOE, DSD and the Department of Regional would where there is abandonment or no waiting Development. I know that the DSD have been list. They would because you can take the position calling for this because they wanted the that it is better to have someone in a house than implementation of PPS 12 because they recognised allowing it to be left abandoned and causing blight. that it will mainstream some of the issues that, for example, Martin Smyth has been calling for about Q43 Chairman: Are those waiting lists targeting low-cost home ownership and about issues disproportionate across community? of aVordability, rather than these being incidental to Mr Walsh: Yes. The highest demand areas would the overall picture of what our housing requirement tend to be in North and West Belfast and around is. It mainstreams across tenure what the needs are Londonderry, but the biggest growth on the waiting in particular communities. My understanding is that lists over the last couple of years in actual need tends there are diYculties as to how PPS 12 would be to be in the areas of South and East Belfast and implemented. The Housing Executive, who will have around the conurbations. So while there is a need in some level of responsibility in the production of many Catholic and Nationalist communities, that is interim housing need statements, have moved on very diYcult to be met because of land availability; this but it is elsewhere, outside of the DSD and the the increasing need is in many of the Protestant areas NIHE, that there are blocks in the formal in communities in South and East Belfast—Antrim, implementation of PPS12 and we would strongly Bangor, Holywood, et cetera. recommend that that be introduced as a matter of urgency. Q44 Chairman: In the Republic, Part V of the Planning and Development Act allows for local Q38 Mr Pound: Within GB, virtually every UDP has authorities to designate up to 20% of all new housing now been reconfigured in the context of the new for social and aVordable. Would you support a HRH densities. I appreciate that density is not such similar percentage rule in Northern Ireland? an issue for your part of the world but do you have Mr Walsh: No, I would not. I do not believe the concerns because this is the key issue in housing Institute would support a percentage gain, provision in GB at the moment? development gain, to be applied somewhere without Mr Walsh: As regards density issues in Northern looking at what the local community need would be. Ireland, we would have concerns on the basis that, if The experience in Dublin is that many of the you looked at the increasing numbers of people on developers decided not to develop if they had to housing waiting lists, they tend to be singles. provide 20% social housing. With the escalating Therefore, if you are simply driven on that narrow value of land they sat and did nothing, which meant focus you would try and provide enough one-bed the building programme actually reduced. They also Northern Ireland Affairs Committee: Evidence Ev 15

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry said, “We want to build nice, high quality, private Q46 Mark Tami: If the Lifetime Homes standard sector housing in this location, we will give you your was applied to the private sector, how would that 20% over here”, which is not within easy reach of impact on aVordability? amenities or whatever. Chairman, the link is PPS 12. Mr Walsh: Lifetime Homes and aVordability are PPS 12 allows the local tenure needs in local areas to not the same issue. The Institute of Housing in be addressed and what the requirement would be for Northern Ireland along with the Joseph Rowntree new build housing, owner occupation, private Foundation carried out an evaluation of Lifetime rented sector, low cost ownership, social housing. So Homes which was introduced by the Department it is targeted on particular needs in local for Social Development in 1998 for the social communities, and that is a better way than some sort housing programme. We did an economic of artificial target imposed from on high. The DSD appraisal of what the cost would be to apply the have looked at the planning gains and other schemes 16-point design standard which is Lifetime in the Republic of Ireland, and I know they believe Homes. In actual fact in Northern Ireland it is a this is not the time to be fettered to percentages 17-point standard. We found the actual cost per without any thought of what the future needs are property can be achieved at a cost of £165 to a going to be. maximum of £545 per property. That is what you Chairman: The Committee has heard loud and clear are talking about to achieve Lifetime Homes. The your comments regarding PPS 12, rest assured we diYculty is that we continue to allow properties to will make enquiries ourselves as to why that still has be built today which we know will not meet the not been published. changing requirements of people in the future. We will have to come back and pay more expensive capital monies to adapt and improve the Q45 Mark Tami: In Wales and England there are dwellings, to build downstairs toilets. We have decency standards for housing, and Scotland is building regulations—Part R of the building moving the same way. Do you think Northern regulations which became eVective in Northern Ireland should adopt this and, if so, what do you Ireland from April 2001—which make it a seeasthelikelyimpactofthat? requirement that there is a downstairs toilet. But Mr Walsh: Yes, Northern Ireland has to adopt the that Part R downstairs toilet cannot be accessed quality standards they have in Scotland and the by someone in a wheelchair without leaving the decent homes standards in England and Wales, door open. Why do we continue to allow because we need to make like-for-like properties to be built which we know are not going comparisons. We have a house condition survey to be habitable by people or visitable by someone which looks at fitness levels, et cetera, which on the in a wheelchair? If someone in a wheelchair were face of it shows that the fitness level in Northern to go and visit someone in a private sector Ireland is below 5% for the first time in 30 years. property built tomorrow in Northern Ireland, they That reflects very significant improvements which could not access the downstairs toilet. How long have happened in Northern Ireland over that could they stay there? The biggest impact to the period of time. If you then compare the 10 point community would be by the extension of Lifetime fitness standard with the targets to achieve Decent Homes across sectors. At a cost of less than £550 Homes in England and the financial resources you can achieve long-term savings because you required to achieve that, then you are comparing will not need to come back to carry out expensive apples and pears. The 2001 House Condition adaptations. How can we continue to allow Survey in Northern Ireland also applied as far as properties to be built at a standard which we know possible as part of that process what the decent will need to change? If we simply allow the homes standard would mean in Northern Ireland, financial argument to determine building because it is wider than simply the narrow fitness standards by private developers, we would still be standard—it looks at adaptations, thermal living in mud huts and caves because they would comfort, solid fuel, et cetera—and it was found not be pushing out those standards. We can coax, that a very high percentage of the properties cajole and encourage the private sector to build within Northern Ireland would fail the decent the Lifetime Homes, and some developers have homes standard, including 70,000 Housing done that, but the only way to ensure it happens is Executive properties, mainly on thermal comfort. by making it a requirement, to amend Part R of the I think it is important that we apply the same building regulations, to impose the standard as standards so the allocation of resources can follow being the minimum standard, because otherwise the greatest need. But more importantly, which they will not take it seriously. We certainly has not happened with the fitness standard, a commend Lifetime Homes. target is put in place to show what you are aiming to achieve, and a date in time so you can be assessed against whether or not this has been Q47 Mark Tami: How well suited is the private achieved. There was never any target to reduce rented sector, in your opinion, to meeting the unfitness. There was a review every five years to needs of social housing and social need? come back and see whether or not fitness levels had Mr Walsh: Thegrowthintheprivaterentedsector improved, but there was no target saying, “We in Northern Ireland over the last number of years hope to achieve a reduction in five years down to has come about to a large extent from the house 4% or 3.5% or whatever.” We need decent homes sales scheme we talked about earlier. People who and we need a target. bought from the Housing Executive after three Ev 16 Northern Ireland Affairs Committee: Evidence

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry years are able to sell without clawback of discount looking for accommodation in that area, and or are able to re-let their former Housing allocations are still made on the basis of those in Executive dwelling. Those who have decided to let greatest need first. It should be noted that not one their dwellings have enlarged the sector and, single case has succeeded against the Housing therefore, there has been a growth in the private Executive on the grounds of discrimination, a rented sector. The private rented sector is record of which they can be justifiably proud. The reckoned to be 49,000 within Northern Ireland. Housing Executive and indeed Housing Associations have introduced a common Q48 Mark Tami: What do you think about the allocation policy in Northern Ireland which is only standards of those? aspirational elsewhere in the UK, where both the Mr Walsh: The standards are mixed. The level of allocation of Housing Association and Housing unfitness is highest within the private rented sector Executive properties are made from the same level and more work needs to be done there. The other of assessment when a vacancy occurs. That is side of that is the value for money needs to be something which many local authorities can only looked at, because there has been an escalating bill hope to aspire to, as in Northern Ireland there is not a whole range of diVerent allocation policies for housing benefit over the last number of years V from £85 million to over £110 million to help where people are appearing on di erent lists. The Executive have simplified that. However, I think people remain in the private rented sector. Yet it is V the part of the housing field which is not regulated there needs to be a review of how e ective that has properly in relation to licensing, in relation to been and whether there are certain people with quality, tenants rights and management and, particular needs who under that scheme are not therefore, more needs to be done. We welcome the getting the level of priority or level of points they work which both the Department for Social may previously have attracted because of their Development and the Housing Executive have individual circumstances. The CIH has called for been doing about trying to develop a strategy for a review of the common allocation and common the private rented sector, and we hope to see the waiting list be undertaken in an open and fruit of their labours during this year, and we are transparent way rather than as part of an internal trying to move that forward. review. I also think there are opportunities to introduce an element of choice to the allocation process which has gained some momentum, Q49 Mr Luke: This is a question on equality. particularly in other parts of the UK in the last There has been a suggestion, and we had couple of years. That is an area and a development discussions when we were last in Northern Ireland which could be added to complement the common about this, that there are distinct diVerent housing allocation list rather than simply allocating to the needs of the communities in Northern Ireland— next person on the list without also looking at Protestant and Catholic. In the Chartered elements of choice, household formation etc. I Institute’s view, to what extent has the Housing think there are ways in certain locations of Executive been successful in developing an balancing both of those things. allocation policy for social housing in Northern Ireland which is fair and equitable in terms of access to the scheme, assessment of applicants and Q50 Mr Luke: You spoke earlier about house sales the allocation of accommodation across the and you rightly made the point that the Scottish communities? Act allowed exemptions and there are specific Mr Walsh: The Housing Executive’s responsibility areas where the councils can do that. Given there was to develop a scheme which was fair and is a huge pressure of demand in certain equitable for all. The way to achieve this was to communities in Northern Ireland, in Catholic establish a standard base line for an assessment of communities, would it be the Chartered Institute’s the number of points based on need, so everybody view that there should be restrictions on house applying to the Housing Executive is assessed on sales in these areas so the social housing is kept the same set of criteria, weighted on need and intact? attracted the same level of points. People can point Mr Walsh: It is certainly not our view there should to the inequalities in that because allocations at a be restrictions in Catholic areas, that is not where lower level of points are achievable in some we are coming from. The issue is about housing communities compared to other communities, but demand and not community identity. It is our view you have to recognise if, for example, a Catholic that we should be looking at the strategic use of the family were applying for accommodation and house sales policy so if there are areas of high knew they needed to have a certain level of points demand, those areas should not continue to suVer for their community, that was a choice they had a net loss of stock where we do not have the ability made about where they wanted to live. Therefore, to meet the existing needs let alone long-term they are competing on the waiting list with other needs. Therefore it needs to become much more people in that community who have equally been strategic. If that means no more house sales in this assessed in the same way. If an applicant with a particular area until we get into a situation where lower level of points can allocated we can meet the needs of those in need on the accommodation in a neighbouring community waiting list, so be it. If we cannot meet existing which is not Catholic, those applications are still needs, we cannot continue to lose the stock and going to be assessed along with all the people then point to the fact we have all these people on Northern Ireland Affairs Committee: Evidence Ev 17

24 March 2004 Mr Kieran Walsh, Mr Tony Ruddy and Mr John Perry the waiting list. We need to be much more strategic Q51 Chairman: We have tried to be as all- on the application of the house sales scheme and encompassing as possible in our questions, is there we cannot simply do it on the narrow basis that it anything in addition you would like to say to the is fair to everybody if they are always able to buy Committee or areas we may not have touched on? whenever and wherever they want to. The Mr Walsh: No, Chairman. I would just like to consequence, as I said, is over the next five years thank you for giving us the opportunity today and we will lose another 25,000 units and then where I hope you have felt we have answered your are the options for people? After all, that is what questions in an honest and forthright manner. social housing is here for, as the safety net for the most vulnerable in our community. If we say we cannot meet their particular needs but we apply Q52 Chairman: Certainly we would welcome any theschemefairlytoeverybody,thenetlossisnot supplementary material if you do think there is the rights or equality of the existing tenants but anything. On behalf of the Committee, can I thank you also have to recognise how equal is it to the you all for giving up your time and answering our people on your waiting list that you continue to questions so clearly. It will help our report once it lose that level of stock. It is balancing their needs is published. which is, I think, more important. Mr Walsh: Thank you.

Supplementary memorandum submitted by the Chartered Institute of Housing in Northern Ireland

EXTRACT FROM A SUBMISSION TO THE NORTHERN IRELAND ASSEMBLY, DATED 3 APRIL 2001 Our comments here are a very preliminary look at some of the options for NIHE. This is against the background of what is happening elsewhere and the Programme for Government proposal to finance a programme for improvement linked to the disposal of remaining public housing stock to social ownership, managed by housing associations or self-managed community development trusts. (Programme for Government section (f): Enhancing physical mobility and the environmental fabric).

Option 1

Do Nothing In Northern Ireland there is general consensus among tenants and all shades of political opinion that the Housing Executive has been a successful framework for delivering housing services. So, if it is not broken why try to fix it! However, maintaining the status quo does not appear a realistic option in the current climate, as funding to meet increasing needs is unlikely to be forthcoming. We have already seen the transfer of the new build function to Housing Associations, not because they had asked for this or, indeed, that it was felt that this could be delivered more eYciently by associations, but solely to allow the levering in of private resources. One consequence of this has been the break down of the current consistent pattern of rents, as associations have to set rents to service loans rather than on size, age, and amenity. It is also clear that with the evolving political structures for governing Northern Ireland a new framework will be required within which the Assembly can set its own strategies and priorities. This will require the harnessing of resources and expertise and a mix of public and private investment, setting the implementation of future strategies within the context of nationally identified needs and priorities. This will require an evaluation of alternative models of delivery to develop a specific housing strategy, reflecting the political, social and economic situation in Northern Ireland. Consideration of the additional options outlined below does in no way imply criticism of the NIHE or advocacy of change. Our comments are provided in consideration of what some of the options might be to improve service delivery, given developments elsewhere in the UK.

Option 2

Public Corporation with More Borrowing Freedom This option would retain NIHE as a unit (although it would be linked to other options to devolve management). NIHE would become a wholly owned public corporation like the Post OYce. It would then be given more borrowing freedom within public sector borrowing controls based on it maintaining a prudent borrowing regime. Its relationship with the Government might be based on a renewable contract, with subsidy related to delivery of services and targets set out in the contract. The Executive could finance more investment if it was able to increase rents, but would have to do so within an agreed business plan with limits on the rate of rent increases. Ev 18 Northern Ireland Affairs Committee: Evidence

There may be ways of giving a reformed Executive more flexibility to meet its investment needs in other respects, for example: — capitalise the benefit of future rental streams to make new investment now (possibly through securitisation); — build up surpluses for the same purpose; — have more freedom to dispose of assets and re-use the proceeds; — transfer the NIHE debt to central government as is happening in England with stock transfer. This option is the least challenging to the NIHE current structure, but could be made a challenging option in terms of its business plan through the contract/subsidy relationship with Government.

Option 3

ABig Housing Association This option has already been mooted by members of the Social Development Committee and would be akin to a whole stock transfer, with NIHE being reconstituted as a large housing association, able to receive grants, raise private finance, etc in the normal way. This option is relatively simple in principle, but raises a number of major questions and issues: — In relation to the other associations, it would be a massive fish in a tiny pond. — How would it be accountable? — Would it carry on with it the strategic functions or would these be left with (say) DSD? — Would it be able to do new build? — How would it be regulated? A variation of this option would be a group structure, with a big parent body and smaller local ones based on existing NIHE district oYces. This would help solve the accountability issue, but some of the other questions would remain. Would local associations derived from the existing NIHE districts oYces feel genuinely independent or would the structure remain monolithic in practice, if not in appearance?

Option 4

Several Housing Associations Under this option the stock would be broken up between new housing associations set up at district level. They would be independent of each other and of any central body. This option, therefore, implies a strong strategic unit within DSD (or separately) to deal with overall strategy and private sector issues that are now handled or proposed to be handled by the Housing Executive. This option could be phased in, with transfer taking place over a period and the Executive, as currently exists, being gradually wound down. The option addresses some of the issues raised under option 3 but might be just as threatening to existing housing associations as that option, as there would be a large number of new bodies competing for grant etc. Also, given the strength of the Housing Executives strategic role, it would be important to have a new arrangement in place that retained it and did not have all the key staV going to local level as new housing association Chief Executives (a problem occurring in England with stock transfer)

Option 5

Arms Length Companies In this option the Housing Executive is retained centrally but is allowed/encouraged to set up arms length companies based on its districts. There would have to be performance thresholds before arms-length could be established and each would require a business plan (maybe operating in shadow form pre-ALC). The Housing Executive’s existing business planning process should be robust enough to facilitate this option. Consideration would need to be given to the financial arrangements that might accompany these changes. One possibility would be to introduce resource accounting for the ALCs, with the stock re-investment indicated in their business plans financed through a new Major Repairs Allowance, as in England. This would be public subsidy so would not in itself solve the problem of where new funds would come from. The ALC could borrow within prudential guidelines and could undertake PEI deals (though there may not be any clear advantage in the latter). This option has the attraction of retaining a relatively strong central base for the Executive and being less threatening to existing associations, as they would (at least initially) still be the main agents for new build. The ALCs could have local boards and be the basis for greater local devolution at a later stage. The big disadvantage is that it does not bring in private finance. Northern Ireland Affairs Committee: Evidence Ev 19

Option 6

AMixed Strategy One way of addressing the weakness of the last option is to pursue a mixed strategy in which districts which could be viable within a resource accounting regime (because they have better quality stock) become ALCs, whilst those with poorer stock are transferred to benefit from private finance. In many ways this would give the best of both worlds and would create more diversity.

Option 7

AMixed Strategy—with Competition Another variation on the previous option would be to allow existing housing associations to compete to take over the stock as an alternative to a new association being formed from the existing district oYces. This would be a more open approach but may be of questionable feasibility given the size of the majority of existing associations. However, it would have the advantage that in poor performing districts there would be an alternative to the present management set up (although staV would in any case have to move across through TUPE rules). There, of course, may be more options than those mentioned, but this provides a basis to discuss the advantages and disadvantages of diVerent approaches as requested in your terms of reference. However, fundamental to developing structures for the future is undoubtedly the issue of over-hanging debt.

Treatment of NIHE Debt Any of the above options could be combined with the taking over of the NIHE debt to be serviced by central government. The advantage of this would be to simplify its financial preparatory to one of the above changes, by bringing current expenditure more or less in line with revenue from rents and capital receipts. The precedent is the write-oV of debt which takes place in England with LSVT, where the Treasury bears the costs and eVectively takes the debt onto its own books. Such a move is neutral in terms of Public Sector Borrowing Rules. (PSBR) The complication in the case of Northern Ireland is the same that has occurred in Scotland, that the Treasury may regard debt repayment as a call on the Northern Ireland block, so that (unlike England) it could aVect current spending. This would need investigation and may depend on the status of the NIHE debt and the historic level of debt from the Public Works Loan Board (PWLB) inherited from the 65 diVerent housing bodies that were amalgamated in 1971 to form the Northern Ireland Housing Executive. However, a clear diVerence between Scotland and Northern Ireland is that NIHE receives substantial subsidy towards debt servicing costs direct from Central Government. (In Scotland’s case, direct subsidy has already disappeared for most authorities and debt is serviced from rent income.) This distinction is undoubtedly an advantage in the argument for the Treasury to bear the costs of this overhanging debt. In the halcyon days of the 1980s, when housing was declared to be the government’s main social priority in Northern Ireland, it should be noted that some £366 million of NIHE debt had been written oV, together with an accompanying reduction in loan charge requirements. Without this write oV a higher level of public expenditure would have been required from the Northern Ireland Block, without any benefit to the physical housing programme. Similar action now would facilitate the development of an appropriate model of service delivery with the investment required to maintain and improve the social sector.

More Modest Reform Possibilities One further consideration of structures for delivering housing services could also involve the re-aligning of existing Housing Executive district oYce boundaries to become co-terminus with electoral boundaries, rather than district council boundaries. As the devolved structure of the Northern Ireland Assembly is on the basis of six representatives from each constituency, it is worth considering a move to 18 District OYces, determined by population and stock size, rather than strict adherence to council boundaries, which have no relevance to delivery mechanisms. The current district structure of the NIHE is primarily the same as created at the establishment of the Housing Executive in 1971 when there were 43 District OYces. A number of Districts have since amalgamated, within District Council areas, creating the current 37 District oYces. However, at that time the stock levels numbered 212,000 properties compared to 120,000 currently, as a result, primarily, of slum clearance and house sales. Existing constraints have prevented the Housing Executive from doing little more than “tinker” with this structure, whereas a more fundamental review could achieve greater eYciencies. Indeed, one could go further and create, for example, one oYce for Belfast, with an increased network of smaller neighbourhood oYces, bringing delivery to the doorstep of local residents. Economies of scale can be achieved with this move from the seven existing oYces, nearly all with city centre locations and simplify the administration of tasks duplicated in each individual outlet. Ev 20 Northern Ireland Affairs Committee: Evidence

Such change could take place within current structures or as part of the introduction of the preferred option for the future delivery of housing services. Finally, as the Social Development Committee is no doubt aware, the Department for Social Development and the Housing Executive have jointly commissioned research, to be undertaken by HACAS Chapman Hendy, into the future options for investment and management of social housing in Northern Ireland. As the terms of reference of that research project appears to overlap with this current review and to avoid duplication, it would seem appropriate for this research document to be incorporated into your report, as part of the ongoing review. CIH calls on the DSD and NIHE to publish the consultant’s report, to stimulate the wider debate, which we have called for in this submission. Northern Ireland Affairs Committee: Evidence Ev 21

Monday 29 March 2004

Members present:

Mr Tony Clarke, in the Chair

Mr Adrian Bailey Mr Eddie McGrady Mr Roy Beggs The Reverend Martin Smyth Mr Stephen Hepburn

Memorandum submitted by the Northern Ireland Federation of Housing Associations

EVIDENCE TO THE HOUSING INQUIRY OF THE NORTHERN IRELAND AFFAIRS SUB-COMMITTEE

1. Introduction 1.1 Although the inquiry intends to examine the eVectiveness of the current housing provision, it will place particular emphasis on social housing. It must, however, take account of the fact that owner- occupation dominates the housing market in Northern Ireland. — The rate of homeownership at 71% (478,000 dwellings) is higher here than in England, Scotland or Wales. — The private sector commissioned more than 90% of all the new homes built in the last five years. — Most young people aspire to become home owners. — The private rented sector has grown significantly in the last decade (42,000 dwellings based on the 2001 Census). 1.2 Housing plays a major role in the everyday life of individuals and society as a whole. Access to aVordable good-quality homes contributes to: — community safety; — economic development; — educational attainment; — environmental sustainability; and — health and social well-being. 1.3 The Regional Development Strategy, which was unanimously approved by the Northern Ireland Assembly, places great emphasis on the need for “mixed and balanced communities”. It acknowledges that a greater degree of tenure mix would be desirable and the forthcoming Planning Policy Statement 12 will be an important tool for implementing the policy. 1.4 Since the inquiry will place particular emphasis on social housing, it is important to define the term. For the Federation, social housing means housing whose provision is subsidised from the public purse and which is allocated and managed in accordance with criteria laid down by public policy. This definition includes: — All rented accommodation let by the Housing Executive. — All rented accommodation let by registered housing associations. — All equity-sharing tenure oVered by the N.I. Co-ownership Housing Association. In contrast, accommodation whose management is not subject to public housing policy, eg former NIHE dwellings sold to sitting tenants under the House Sales Scheme, falls outside this definition of social housing.

2. The Rising Demand for Social Housing

Key Facts 2.1 The best way to measure whether the demand for social rented housing is actually increasing is to ascertain how many households join the Common Waiting List each year and are awarded at least one point. It would not therefore be appropriate simply to consider whether the Common Waiting List had lengthened because this depends on the supply of lettings as well as demand. It is worth noting that the Common Waiting List has been used by the NIHE and all registered housing associations providing permanent lettings since November 2000. Ev 22 Northern Ireland Affairs Committee: Evidence

2.2 Despite growing prosperity for some members of our society, a significant proportion of the population is now unable to buy or rent a suitable home. The demand for equity sharing through co- ownership continues to be strong, particularly since the average price of houses suitable for first time buyers is still increasing at a rate well above general inflation. 2.3 The demand for social rented housing is geographically uneven. There are pronounced “hot spots” in certain areas of Northern Ireland such as parts of west and north Belfast. 2.4 The rate of household formation in Northern Ireland is relatively high because: — a large proportion of the population is young (22.5% compared to UK average of 19.2%); — many marriages/relationships break up; and — young people tend to leave the parental home at a younger age. 2.5 In accordance with community care policy, more older and other vulnerable people are continuing to live independently. Housing associations make a considerable contribution towards this achievement.

Recommendations 2.6 Every eVort should be made to satisfy the demand for social rented housing in the “hot spots” by intensifying existing measures to improve supply and diverting some of the demand by creating more opportunities for equity sharing and working more closely with the private rented sector. 2.7 The demand for social rented housing can be depressed by stigmatisation of particular areas or the sector as a whole. Public policy should counter this by promoting a greater degree of tenure mix (in line with the objective of the Regional Development Strategy), sensitive housing management and working with tenants, public authorities and other stakeholders to promote community development and minimise anti- social behaviour.

3. The Continuing Decline in the Supply of Social Housing

Key Facts 3.1 The reletting of existing stock is the main way of meeting housing need. In 2002–03 the NIHE made 8,766 allocations and registered housing associations made 2,423. 3.2 The government’s target that housing associations should provide 1,575 units of accommodation in 2003–04 is small compared to the loss of social rented stock. 3.3 The dominant factor is the House Sales Scheme of the NIHE, under which the stock has reduced by an average of 5,000 dwellings per annum over the last five years. 3.4 Over the same time-scale, an average of 1,000 social rented dwellings have been demolished each year. Some make way for high-quality replacements but the vast majority are not rebuilt because there is little or no demand in the locality. 3.5 Construction of new or rehabilitated homes for social renting has fallen in recent years. Housing associations started 1,904 dwellings in 1998–99 but only 789 in 2002–03. A welcome increase to about 1,300 will be seen in 2003–04. 3.6 Housing associations work within increasingly complex and demanding requirements which are intended to ensure that their developments address priority need, contribute to wider strategies and provide good value for public money. Some of these wider strategies are Supporting People, Investing for Health, sustainable development and promoting social inclusion.

Recommendations 3.7 The House Sales Scheme should strike a reasonable balance between the need of those who badly need aVordable rented housing and the aspiration of those who are already adequately housed but wish to change their tenure, often with the help of a substantial public subsidy. The present Scheme should be amended to take account of the radically diVerent supply/demand situations in various parts of Northern Ireland. 3.8 Housing Associations should be given maximum flexibility to deliver their approved development targets. Bureaucracy should be reduced to the minimum consistent with accountability for public money. 3.9 The potential of the planning system to assist the creation of balanced housing communities should be realised by finalising the draft Planning Policy Statement 12 and using it to facilitate the provision of social or aVordable housing where it is needed. Northern Ireland Affairs Committee: Evidence Ev 23

4. The Quality of the Housing Stock

Key Facts 4.1 The minimum design standards for new social housing in Northern Ireland produce good quality homes with reasonable space, disabled access and energy eYciency but there is scope for further enhancement. 4.2 The overall rate of housing unfitness in Northern Ireland has been greatly reduced and is now similar to the average for Great Britain. 4.3 The great majority of unfit housing is privately owned (12,000 owner-occupied and 4,300 privately rented dwellings were unfit in 2001). NIHE and housing association homes are generally in good condition and only 1,400 were unfit in 2001. The rate of unfitness in both parts of the social rented sector is also very low (0.8% for occupied NIHE stock and 2.1% for occupied housing association dwellings). 4.4 For most people, whether their home is “a good place to live” is as much to do with their view of the social and physical characteristics of the neighbourhood as the standard of the dwelling itself.

Recommendations 4.5 The history of social housing indicates that building to high standards provides best value for public money over the long term. This approach should be continued in Northern Ireland. 4.6 A new standard, going beyond the unfitness criteria, should be adopted for assessing the quality of the social housing stock. This should be broadly comparable with the “Decent Homes” standard used in England but take account of factors which are more important to housing in Northern Ireland such as: — the Lifetime Homes standard (which facilitates persons with temporary or permanent mobility limitations); — better thermal insulation; — heating installations which residents can easily control; — home security measures; and — reasonable external environment. 4.7 The potential of the two recent reviews of the private rented sector in Northern Ireland (the Department for Social Development’s review of legislation and the Housing Executive’s strategy for the sector) should be harnessed to give private landlords an incentive to: — provide a good standard of housing management; and — improve the physical quality of their property. Conversely, stronger measures should be taken to encourage private landlords who are unable or unwilling to achieve reasonable standards, to sell their properties to other players such as housing associations.

5. Conclusions 5.1 The voluntary housing movement has made a major contribution towards addressing housing need and to the improvement of housing conditions in Northern Ireland over the last 30 years. 5.2 The stock of housing associations properties (both rented and equity-sharing) is generally of high quality, with very low levels of unfitness. 5.3 Housing associations have provided a major boost to government resources in the last 10 years by levering more than £200 million of private loans into the social housing programme. This is the equivalent of more than 3,000 homes that would otherwise not have aVorded within the budget. 5.4 The Federation calls for: — an open debate on new housing policies for Northern Ireland, such as how: — the sale of social rented housing can be tailored to contribute to overall housing strategy; — landuse planning can be integrated with housing policy; and — the proposed Decent Homes standard can be best achieved. — a review aimed at minimising the bureaucracy to which registered housing association are subject; and — a government commitment to sustained, long term investment in the housing stock of Northern Ireland. 19 March 2004 Ev 24 Northern Ireland Affairs Committee: Evidence

Witnesses: Alderman Arnold Hatch, Chairman, Mr Chris Williamson, Director, Mr Arthur Canning, Vice- Chairman, and Mr Graham Murton, Deputy Director, Northern Ireland Federation of Housing Associations (NIFHA), examined.

Q53 Chairman: Gentlemen, let me begin by oVering meeting unmet housing need. There is a historical the committee’s apologies for keeping you waiting. legacy but since the transfer of the development It was unfortunately a delayed flight which we were programme to associations the eVorts of those unable to do anything about, but we are grateful to associations have been quite explicitly directed into you for staying with us. This is the committee’s first the areas of maximum need and our members have evidence session in City Hall so it is a bit of an been doing that work on a consistent basis. occasion for us. We have a number of questions as part of our inquiry into housing, and I will start with Q54 Chairman: Coming back to the hot spots, one the demand for social housing. It has been suggested of the recommendations from the Federation is that that the housing need is geographically uneven and you have called for closer working with the private that there are certain hot spots where there is greater rented sector to meet the demand for social rented housing need. Could you tell us how housing housing within these hot spots. How do you believe associations are geographically situated and that can be achieved? whether or not the housing associations that are in Mr Williamson: We were explicitly told in the brief V operation e ectively cover the whole of Northern for this inquiry that it was about the demand for Ireland and in particular whether or not the hot social housing, the supply of social housing and the spots are covered adequately? quality of social housing. Our answer in reference to Mr Williamson: I am Chris Williamson, the Director linking up with the private rented sector was about of the Northern Ireland Federation of Housing how social housing generally can work alongside the Associations. Our team here, including my private rented sector. In the hot spots to which you Chairman, Vice-Chairman and my Deputy, are refer I would take you back to the Housing delighted to have the opportunity of giving this Executive’s strategy for the private rented sector evidence. Yes, housing associations have coverage which was consulted on and finalised, I believe, last right across Northern Ireland if you take housing summer. That quite explicitly said that in the areas associations collectively. Historically there were two of maximum pressure on the social rented stock broad sources of housing associations. One was more use needed to be made of the private rented intensively community-based housing associations sector. This is not just any old private rented sector which were quite explicitly set up to deal with very stock but good quality, well managed private rented small areas, mostly in Belfast but not exclusively so. sector stock. In those areas of maximum need that is The other type of association was a general something that the housing association movement is Northern Ireland-wide type of association mostly comfortable with. We need all the help we can get to dealing with specialised client groups such as elderly relieve the stress that there is. In addition, of course, people, disabled people and the like. Those are the we were saying that co-ownership, or equity sharing historical roots for registered housing associations as you might know it better in Great Britain, can since 1976 and those specialisms were explicitly laid play a very useful and important role in diverting down by the old Department of the Environment for some of the unmet demand in the hot spots but this Northern Ireland, which was the regulator, and its is not in any way to detract from the fact that in successor is the Department for Social those areas first and foremost we need more social Development. Those niches, if you want to call them rented housing. that, were set down in the founding of registered housing associations here. Our members have Q55 Chairman: So far in evidence that has been properties all over Northern Ireland. They work given to us it has been suggested by a number of closely with the Housing Executive to look at where commentators that in eVect there are two diVerent the unmet housing need is. In the same way as kinds of housing need in Northern Ireland and each associations were told to specialise in the early years of those needs is diVerent: first of all what some the Housing Executive was quite explicitly told by would call Catholic housing need and Protestant the department to concentrate on large scale housing need, but also that those two manifest redevelopment and family-type housing. So always themselves in diVerent ways in as much as Catholic since 1976 the demand for social rented housing has housing need is about shortage in particular been looked as a whole through the various locations whereas Protestant housing need is around providers, that is, the Housing Executive and the the need for house and area rehabilitation and registered housing associations collectively. We now modernisation. Is that a description that you would have a common waiting list from which the unmet recognise and/or agree with? housing need is registered and analysed and plans Mr Williamson: I would recognise it as a very gross are made by the Housing Executive plus the generalisation. As we said in our submission, Department for Social Development to meet that housing need is becoming more and more intensely unmet need. I am perfectly satisfied that, although localised and diVerentiated. To answer that question the historical stock of associations is not necessarily more substantially I would like to refer to the concentrated in the areas of highest need currently, Chairman of our Federation, Mr Hatch. the new provision by those associations is Alderman Hatch: I am Arnold Hatch, Head of the concentrated in such areas along with the existing Northern Ireland Federation. I would not accept social housing, which generates most of the re-lets, that Protestant housing need is just about of course, and is therefore the dominant means of rehabilitation. There are specialist housing needs for Northern Ireland Affairs Committee: Evidence Ev 25

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton the Protestant community as well as for the Catholic Q57 Chairman: Overall would you say that the community. The housing association that I am housing association sector serves both populations currently a member of and have been for 25 years well in that it reflects the availability of stock and of was started by the late Harold McCusker. We are new build projects? now known as South Ulster and our operation runs Mr Williamson: Absolutely. For further elaboration quite close to the border. The new build schemes that of that point I would like to refer to my Deputy, we are involved in at the moment will have a lot more Mr Murton. of the Roman Catholic side of the community Mr Murton: I am Graham Murton from the because that is the area where the need is and that is Federation of Housing Associations. In the course as directed by the Housing Executive in terms of of this inquiry we have been looking at NICORE need. We do not look at an area. We will build statistics, which is the Northern Ireland equivalent anywhere. We do not look where there is Protestant of the Scottish CORE statistics that relate to the new or Catholic. It is wherever and whatever the need is. lettings of housing associations. What we have Mr Williamson: Our movement has a proud record found over the last five years is that the lettings are in rehabilitating older buildings, mostly individual very close to the census information, so I, together houses but quite often substantial buildings that with Chris, have no doubt that associations are were in other uses, such as former hospitals. It has meeting that demand right across the board and, as been for a long time the case that generally speaking has already been said, there is a single waiting list for Northern Ireland drawing from one source, the need to meet the aspirations of people in need the is agreed with the Housing Executive and rehabilitation of the small houses that typified associations are responding to that need. I am quite Belfast working class areas for so many decades are happy to write to the committee to give you the no longer considered acceptable; their orientation detailed summary of those statistics if you require it. and their environment is not considered suitable for modern living. For quite a long time now, several decades, I would say, the emphasis has been more on Q58 Chairman: That would be helpful. We looked at gradual redevelopment than on rehabilitation a study from 2000 which found that the proportion within the existing shell, though that is still done. of Protestants within housing association accommodation is greater than in other tenures, so it would be interesting to balance that study against Q56 Chairman: The generalisation I used then could your statistics. V possibly be used to describe the situation in Belfast Mr Murton: There will be some di erences between but perhaps not across Northern Ireland. Would the statistics you quote because, for example, in that be a fairer reflection of the situation? sheltered accommodation that would reflect an older part of the population in Northern Ireland and Mr Williamson: If I could refer to our Vice- the older population in Northern Ireland would split Chairman, his association has been active on both broadly along a 70/30 split which would reflect the fronts. demography going back to the 1920s and 1930s. You Mr Canning: Yes, Chairman. In essence the housing would expect that to be reflected in the likes of associations are largely recapping what has been sheltered housing because if that was not reflected it said in support of that evidence. Traditionally we would show some bias the other way perhaps. have responded to housing need which has been Therefore, if you take the whole rounded picture designated by the statutory authority in Northern where we have a more Protestant older population Ireland for determining housing need and that is the and a more evenly split population as we go through Northern Ireland Housing Executive. Depending on the various age bands, that is reflected in the where that need exists we are responding to it. accommodation that associations are providing. Obviously, that response is meeting the particular Mr Williamson: Chairman, may I supplement that community needs at any one particular point in by reminding you of a point that I made at the time. That can cover communities in which there is outset, that the old Department of the Environment a mix and individual communities in terms of explicitly told associations to specialise in particular Protestant and Catholic communities, so there is a fields and the biggest single field in which they very broad brush in terms of the provision and we specialised and made a great success of was in are responding to it. sheltered housing for older people, so a big Mr Williamson: It is also to do with the geography. proportion of the housing stock was and still is South Ulster Housing Association is a classic sheltered housing for older people. This example where for many years it concentrated demographic point that Graham has mentioned is primarily on rehabilitation of houses in the perfectly in keeping with the aim of that sheltered Portadown area but not exclusively so and, as our housing and with the history of housing policy here. Chairman has said, it has long since moved well beyond that to Newry and places like that, doing Q59 Chairman: You move me on very nicely to mainly new construction. I forgot to answer part of questions related to other needs and the challenge the question that you put to me. My point about that lies ahead for those responsible for construction gradual renewal and redevelopment rather than of new social housing. We have a change in the rehabilitation applies just as much in Protestant nature of demand there. There are, of course, many areas as in Catholic areas. That is the essential point more single people on the common waiting list than that I forgot to make earlier. ever before. Does the Federation feel it is in a Ev 26 Northern Ireland Affairs Committee: Evidence

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton position to meet the challenges of change in demand strategy. It was written and approved by the that I have outlined in respect of the need to serve politicians and it is now up to organisations like ours both communities and also the challenge to provide to play a role in delivering that. There are two main mixed and balanced communities as set out in the aspects of mixed and balanced communities. One is Regional Development Strategy? to do with mixture of household type and income Mr Williamson: That is a big question but I will try and employment status, and, secondly, the to pick up the various points in it and please come community background status which is very back to me if I fail to address some of them. In terms important in Northern Ireland. A lot of people come of the first couple of points, our housing association from traditional Roman Catholic or Protestant movement, being a very diverse movement, is backgrounds. In terms of the tenure side of things extremely strong and brings a lot to the table of and mixing incomes more, it is easier to deal with housing solutions in Northern Ireland. One of those that one in a Northern Ireland context than the niche markets in which our members were second. There is good hope that the draft planning encouraged to specialise in those early years was in statement PPS 12 will open up possibilities under the single accommodation and a couple of our aegis of the Regional Development Strategy to associations specialise in that field and continue to enable a greater mix of tenures than has hitherto provide very valuable accommodation, most been possible in Northern Ireland. I am not notably in the areas where there happen to be pretending that there may not be diYculties with establishments of further education. Do not let us that but it holds out some hope for, instead of wall- get trapped into feeling that single people equals to-wall owner occupation in large swathes of young people. Broadly speaking that is true but it is development, a degree of mix of tenure. Our by no means totally the case. Our movement right members will play a role in that, not least the Co- from the very beginning has had a place for single ownership Housing Association to whom you will accommodation and we have been advocates—and I be speaking shortly, helping to get the tenure mix make no apology for using that word—for the rights and therefore the range of income mixes better than and needs of single people. On the common waiting it currently is. Turning to the business of community list that all social landlords have used since the year background, that is a much more diYcult thing to 2000 there is a weighting system where various organise in Northern Ireland and well-intentioned criteria are used to decide classes of housing need experiments and eVorts have become badly unstuck and how much weight should be attributed to each in the past and public money has ultimately been of those criteria. A great deal of time and eVort went wasted, unfortunately, so we need to be very careful into looking at the previous weightings and whether in not being unrealistic about what can be achieved. they were correct or not and adjusting those to take I want to draw to your attention the fact that our more sensitive account of the present priorities that Federation represents not just the registered housing we are seeing now. An evaluation of those criteria associations, those that are monitored and regulated took place a year ago and they were considered to be by the government, but also those that are not so broadly okay. My point is that for people who are regulated. They are still housing associations but single and who score highly under the selection they have more freedom for action. One of those scheme, which is the common selection scheme, I unregistered housing associations, which is called would emphasise, they will get housed very quickly. Habitat for Humanity (Northern Ireland), has had a For people who do not score highly on that selection name for quite a number of years for putting scheme they will not get housed quickly unless they forward an integrated housing scheme. They have are prepared to consider areas of lowish demand and been working on a bi-community basis. They have sometimes they are not prepared to do so, in which not found it possible to put integration in one case they will remain on the waiting list and could particular scheme. The best they have so far been remain on it for a long time. It is not enough to look able to do is to do paired schemes close to each other at the number of people who are single and waiting on both sides of the divide. That organisation holds on the list. In all honesty, given that there are never possibly some of the best hope for achieving a fully going to be enough houses for absolutely everybody, integrated scheme and we will back them in that. In no matter what degree of need they are in, there is a terms of the registered associations there have been prioritisation system that is in place and it may well the beginnings of discussions about how registered be the case that we should look again at those housing associations might contribute to this priorities but our members are building according to process. Given the common selection scheme, to the assessed needs from that waiting list, always have which I have referred several times, it is clear to me done and will continue to do so. The third element that if we were to go down that road some of our of your question was about mixed and balanced members would be prepared to try that and give it a communities and you rightly referred to the good go but they would have to have in their toolbox Regional Development Strategy which was passed a change to the normal common selection scheme by the Northern Ireland Assembly a couple of years which is permissible under that approved selection ago. It is very important to note that that was scheme. There is a thing called Rule 84 which unanimously approved, that it is there as the oYcial permits, with the consent of the Department for overarching policy document for spatial Social Development, departures from what you development in Northern Ireland and that housing might call the normal blind housing needs is a prominent feature of that. We, the Federation, assessment to devise for this kind of experimental did not put this “mixed and balanced” thing into the development some kind of system where it would be Northern Ireland Affairs Committee: Evidence Ev 27

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton considered legitimate to achieve in the first lettings a provider of most of the housing need through re-lets, balance between the communities and in re-lettings about 8,500 per annum. Associations are kicking in for that balance to be sustained. I would like to add with about 3,000 re-lets and new build each year. It that we need to be conscious that there are more than is essentially the re-lets that we are losing because of two sides of the community in Northern Ireland. house sales and this is causing some of the problems Increasingly we are conscious that there are other we have at the moment. We want to see that balance parties besides the racial groups in our community redressed. and we need to bear those in mind as well. Q62 Reverend Smyth: Are you saying that as far as Q60 Chairman: You mentioned PPS 12. We are told the Housing Executive is concerned if your it has not been introduced yet. You would join those proposals were taken on board there would be more who are calling for its speedy introduction, would re-lets available or do you not think in the end you you? would still be finding fewer houses for social renting? Mr Williamson: I would certainly call for its Mr Murton: You will no doubt be discussing the introduction as soon as possible because a half- programme later on but the Housing Executive are baked introduction of the PPS would be worse than selling in excess of 5,000 properties per year and nothing. I feel that it has potential. It is not going to there are additionally approximately 1,000 be the end of the story because I believe that area properties being demolished in the social sector. plans, as they are being developed and approved, Housing associations provide a programme of, say, will also need to be written in such a way as permits 1,500 units per year. You just have to do your this planning tool to be operated. I do not see it as a arithmetic to know that even if associations double quick fix but as a necessary building block. the programme in a matter of two or three years we have still got the same loss of stock. There has to be a tighter balance between what we sell and what we Q61 Reverend Smyth: Reference was made earlier to produce; otherwise people on the waiting list who the problems of continued re-lets. There is another are living in some of these high demand areas and issue surely coming up. What changes, if any, would trying to get housing there will never have their you like to see in the current housing sales scheme? legitimate aspirations met. As you know, Mr Murton: This is obviously a very contentious representing the South Belfast constituency, that is issue in Northern Ireland and what I would like to the constituency which has the longest waiting list in say at the outset without going into details of what Northern Ireland and is one of the most diYcult changes we want to see is that in broad terms what areas in which to get social housing. We cannot the Federation has called for over the last three years constantly be selling houses at the rate we are selling or more is a balanced approach between the needs of them now without there being a payback over a people with legitimate aspirations to own their home period of time. The time has come, as has been and the legitimate aspirations of people on the recognised around the rest of the UK, to make this waiting list who have every reasonable expectation readjustment. I am not saying that people cannot be of being housed within some time period. We feel allowed to buy their house, but we have to readjust that at the moment that balance is not correct and the incentives. £34,000 in Northern Ireland is a huge we have called for a number of changes because we incentive when you compare £16,000 to the market feel the current sales policy in Northern Ireland is values in the south of England where council houses out of date; it is not consistent with the recent perhaps have a market value of £150,000–£200,000. reviews that have taken place across the water and it £34,000 in Northern Ireland is very generous. is extremely generous. It has a discount ceiling Mr Williamson: We are not talking about the short currently of £34,000. We have seen the tightening of term. We are not saying that instantly more re-lets that kind of discount ceiling across the UK generally will be produced if we implement the changes that in England, Scotland and Wales, particularly in the my colleague has outlined. What we are saying is south east. We are calling for a £16,000 cap for that if the changes that we recommend were brought Northern Ireland and to say that the sales discount in tomorrow then after a period of about ten years for houses should be the same as for flats. We say there would be considerably more re-lets generated that housing associations or the Housing Executive than would otherwise be the case. We are talking itself should be given a right to buy back on the sale about a medium to long term horizon here. of a property. We are talking about the possible introduction of portable discounts from high demand areas where you can transfer those Q63 Reverend Smyth: You have been emphasising to discounts to other areas where demand is less intense some extent the Housing Executive end of it in the social sector. We are talking about repayments although it also involves the housing associations. possibly going up to a five-year horizon rather than Mr Williamson: Absolutely. a three-year horizon so that people have a longer commitment to the property they buy oV the Q64 Reverend Smyth: The Voluntary Purchase Housing Executive or oV an association. We are Grant scheme would have had an impact there. talking about the qualification period being three Would you like to say what impact the recent right years’ tenancy where it is currently two. All those to buy legislation may have had on the association figures would fit with a more balanced approach. tenants, particularly from stock that was built for a That would also generate over a period of time more particular purpose? I am thinking of handicapped re-lets because the Housing Executive is the current people and people with other disabilities. Ev 28 Northern Ireland Affairs Committee: Evidence

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton

Mr Williamson: I am delighted that the Reverend Mr Williamson: Once again, if you would not mind, Smyth has raised the question of housing that is I would urge you to talk about a house sales scheme specially designed and managed for particular because that is what we have got and we have got on groups, notably physically disabled people. Elderly the statute book in 2003 the Housing (Northern people in sheltered housing are the other big class of Ireland) Order which makes provision for a property to which this is relevant. There is a dilemma statutory house sales scheme to be set by the here because on the one hand it can be argued, and department. We have yet to see what that scheme it has been argued in Northern Ireland courts, that will be. As my colleague has said, our Federation has it is unfair to deny someone in a wheelchair the right been very forthright in saying that we felt that the to buy the house that they have been living in as a Housing Executive house sales scheme is not tenant in the same way as, let us say, a neighbour necessarily appropriate for housing associations to living in non-specialised housing has been able to use because they are very diVerent legally and exercise his or her ability to use the house sales financially. Also, much more importantly, in terms scheme, and the legislation right since 1981 in Great of the balance between the rights of those who are Britain has come down in favour of the view that on housed already and who want to have their balance it is more important that this specialised ownership aspiration satisfied versus those who are group of property should be preserved for the people not housed and need a decent home, that is the pre- who really need it. There is just not enough of it eminent thing that needs to be taken into account in around for the wholesale right of what used to be a broad review of the house sales policy. called in Northern Ireland the right to buy. I would emphasise that the right to buy has not existed in Q67 Reverend Smyth: How willing are the housing Northern Ireland since 1992. It was repealed oV the associations to provide new build in areas of high statute book. There is a balance to be struck between demand where they are likely to be purchased at an the rights of those who are disabled tenants and the early date? rights of other disabled people who are not yet Mr Canning: In responding to that question could I tenants and who desperately need that kind of add a supplementary to the previous one? In order specialised accommodation. We say that there is no to ensure balance and fairness in the input that the easy answer, but certainly for the foreseeable future Federation makes into house sales the Federation the relatively small stock of specialised commissioned independent research on the policy accommodation ought to be preserved for the through the University of Glasgow which we have purpose for which it was designed, built and funded, distributed quite readily, so rather than just putting largely by the taxpayer. forward our own individual views and corporately through the Federation, we felt it was appropriate that we should take that further and we have Q65 Reverend Smyth: While you say there is no easy submitted that evidence as well. In the 25-plus years answer would you not accept that the law has been in terms of what housing associations have achieved there as regards access to the built economy and is it we have always welcomed the opportunity to input not now time that both the housing associations and into housing policy a balance between equity and the Housing Executive and private developers got fairness. Once that policy has been set our members architects to design houses that could be used by have demonstrated wholeheartedly a willingness to everybody so that even people with handicaps are follow that policy through and if it became the V put o from visiting friends because they cannot go ultimate policy that we would be building houses to the toilet? which would automatically qualify for a right to buy Mr Williamson: I am delighted that you have raised for tenants who were moving in then I can simply say that, Reverend Smyth, because this movement of that our members would do that without question. ours has a very proud record in providing specialist accommodation for disabled people. We have been Q68 Mr McGrady: The Housing Policy Review of leaders in adopting and advocating the 1996 was a huge watershed in terms of the provision incorporation of what are called lifetime home of new social housing. The associations, which are standards across the board. We have been by and large specialised housing associations or advocating that the building regulations should be geographically located housing associations, were changed more than they have been in the recent past. given the onerous task of providing the whole of the I give credit to the changes that have taken place but social housing for Northern Ireland. Looking at the they are not enough and our colleagues in the statistics over the last five completed financial years Chartered Institute of Housing produced research a there has been a totally unacceptable drop in the couple of years ago and gave a presentation in number of new house starts. In fact, it is just over a Stormont to demonstrate very vividly how, with a third now in the year 2002–03 of what it was in relatively small additional amount of design and 1998–99. Whose fault is that? expenditure, all new homes could be made much Mr Williamson: “Fault” I think is a very loaded more accessible. term.

Q66 Reverend Smyth: Would you like to say what Q69 Mr McGrady: Who would you blame then? involvement your associations had in the Mr Williamson: That is also a loaded term! I want to development by the DSD of the right to buy scheme address the question. It is a serious question and it for housing associations? requires a serious answer, so I am not trying to be Northern Ireland Affairs Committee: Evidence Ev 29

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton dismissive or smart. I am just trying to underline my Chairman: That would be very valuable to us. conviction that this is a complex matter. As a preamble can I just mention that Mr McGrady is Q70 Mr McGrady: Thank you very much for that quite right, that in the last few years the output of answer. Changing needs, sites for development, land new social rented housing has fallen and that is a values, costs and planning—we always knew about cause for serious concern among our members as those problems; they are annual problems. The well as among our elected representatives like your estimated requirement for new house social building own good selves, not least of course the people was something of a nightmare, depending which needing new homes. We also need to bear in mind local authority you looked at. Some are 1,500 a year, that since 1996 the output of our members’ some are 1,000 a year, some are 1,750 a year. What production went up substantially before dipping, was the target for the year we are in, 2003–04, the and I am pleased to be able to tell you this afternoon closing date being Thursday or Friday? How many that there has been a substantial increase from that new starts have there been in this year? very low figure of the last financial year to something Mr Williamson: The target was 1,575 and that much closer to the target that was set by included 75 units done under a special funding government. The graph has fluctuated. There have initiative to do with homelessness. Another 75 of been ups as well as downs and I am pleased to say those were to be built by the Housing Executive that we are now in an up situation. Turning to the because the Housing Executive has not totally more serious question of what factors have been stopped building, although it is true that the housing causing that, there are various of them and I do not associations are to be the prime providers. The think that simply pointing in one direction is going answer to the second part of your question is that as to achieve a satisfactory answer. I believe that there of today’s date the number of starts stands at 1,300. are multiple causes for this situation and there are There are still some days to go, not many, before the multiple elements to solutions. Under broad end of the financial year, but there are still possible headings there are factors to do with the pattern of starts. housing need; that is the fundamental thing. It is not the same as it was. It is much more diVerentiated, it Q71 Mr McGrady: Can you see any short term is much more hard to measure. Sites for housing are measures that could be employed not only to arrive not getting any easier to find. Costs and grants are at new starts as planned per annum but also to always a problem. You will not need me to tell you, recover the shortfall of the last number of years, I am sure, even you gentlemen from Great Britain, because that impacts on some of your earlier that land values in Northern Ireland have been answers on sales versus lettings? Have you any rocketing and still are. We also have a new planning thoughts on that matter or would you contemplate policy which rightly places the emphasis on trying to committing hara-kiri by returning new build to the keep urban areas contained and making more use of Housing Executive? brownfield sites. Often they are contaminated or Mr Williamson: While I have a little laugh at that last have site development problems of one shape or point may I ask my deputy to take the substance of another. For a number of years after the 1996 policy the question? review there was uncertainty as to the respective Mr Murton: In essence we would like to see a more roles of the Department for Social Development and strategic use of what we call existing satisfactory the Housing Executive in relation to the housing purchases, one-oV purchases where properties are association work and that certainly did not help in on the market that associations could buy and re-let. getting the clarity of policy direction that we were That would be one measure which could be taken looking for. I am not saying that applies now but it fairly quickly without overheating the market and did have an impact for several years and because we would not be paying more than the market value development is a three-year process generally for those houses. It is also fair to say that we do not speaking it carries forward. I would say that the foresee a major role for the Housing Executive in impact was still felt in the early 2000’s. There are terms of the programme. The Housing Executive as various other additional requirements that have it stands already has a major role. They provide the been laid down, partly through planning policy, assessment of need which determines where the partly through DSD policy. One such example is the housing goes. It would essentially be a waste of very worthy policy of supporting people, which is a public resources for the Housing Executive to do very sensible way of bringing together the that because, as Chris has already said, we have got assessment of need for supported housing with the 1,300 coming in this year and there is even talk of delivery of it and the regulation of the whole system. going round the 1,500 mark for new build starts this That is all very good but it makes the whole business year. That represents more than £30 million worth of of planning and delivering supported housing, private finance that has accompanied this which represents about 20% of the development programme. Where would that money come from if programme, much more complex and long-winded. the Housing Associations were not borrowing it There are other factors. I have written a paper, privately? If we revert to the Housing Executive Chairman, which I am happy to leave today with the taking a large measure of the new build market, that committee which will elaborate on these points in a would produce less for the same amount of money bit more detail. It is only three or four pages but, unless there were additional resources. That runs rather than take the committee’s time with each of against the whole government theme of drawing them, I am happy to make this available. private finance into the public sector, trying to make Ev 30 Northern Ireland Affairs Committee: Evidence

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton resources in the public sector go as far as possible. are aVecting slowing down the delivery of the Northern Ireland housing associations are development programme. They specialise in helping committed to making the programme work. The to assess the latent demand for housing in rural work that the Housing Executive, the department areas, housing which does not show up on the and the Associations have done in the last two years waiting list that I keep referring to but which through the Tripartite Working Group is now seeing nonetheless has been tested and sometimes found to fruit. We are coming out of the tunnel of the low be there by using other market research methods. number of starts we had about 18 months ago and Having that specialised focus has added value to the we are going to see a better programme delivery situation and it is conceivable that other needs of from now on. that nature equally might come up for which a new association might be wanted. Q72 Reverend Smyth: Have you any concerns about the current policy that does not allow new housing Q73 Reverend Smyth: In that context you will be associations to be formed in Northern Ireland? aware that Paddy Gray of the University of Ulster Alderman Hatch: When the Portadown Housing has argued that social housing bodies in Great Association was formed some 25 years ago our sister Britain or the Republic of Ireland may have a useful town of Lurgan wanted to start one and the role to play. Would you have any views on their Department for the Environment at that time said, coming into Northern Ireland? “No. One housing association will do”. I have no Mr Williamson: I have got views on it. We would particular concerns about the formation of new have no particular objection. The answer to the housing associations. If there is an identified area of previous question would apply. If there is skill, if need it could be facilitated. There are quite a number there are some other resources that cannot otherwise of housing associations in Northern Ireland, be levered in, then our Federation would not be currently 22, that are registered, plus the opposed to that. It is the fact, however, that the law unregistered ones, so there are probably about the of the land for Northern Ireland says that any right number, but we as the Federation have no hard housing association that wants to receive housing and fast thoughts on saying no to more if a new association grant from the Department for Social housing association say they are going to provide a Development must be registered here in Northern service that is not already being provided. Ireland by that department, and so if there were a Mr Williamson: Can I supplement that by Great Britain initiated association or parent underlining the fact that the number of associations association it would have to set up some subsidiary is 39, but they are the registered ones. It is terribly or separate organisation here. The previous answer important always to bear in mind that there are applies. It just depends if the authorities can be unregistered housing associations as well as the satisfied that there is something new that needs DSD registered ones. There is plenty of room for doing that the existing associations cannot deal with. both classes of association. For the unregistered I would also refer to the fact that fraternal or ones there is much less bureaucracy associated with informal support from Great Britain has always them, much less red tape to be gone through, and been welcomed by our housing association they can be formed relatively easily and I think that movement here. Some of our leading members were situation should continue. For the DSD registered formed and supported in their early days by links ones the DSD has laid down very strict registration from Great Britain associations and those friendly criteria. Those registration criteria were revised links continue and are very important still. about ten years ago and they broadly say that the Alderman Hatch: It is worth pointing out that the department will not register more associations until James Butcher Housing Association, a Great Britain and unless they are satisfied that none of the existing based association, has obviously been re-formed and ones is able and willing to do the particular housing properly constituted within Northern Ireland and job that is required. Our Federation is satisfied with even if we wished to build houses in the Irish those criteria but if some new situation arises in Republic we would have to be registered as a which it is clear or can be fairly demonstrated that housing association in the Irish Republic just the none of the existing ones can do the job, we are not same as it is here. against the formation of new registered housing associations. It would be useful to draw your Q74 Reverend Smyth: You did say earlier on, attention to the fact that the very last registered Mr Williamson, that you will never meet the demand housing association is one called the Rural Housing for housing; it is hard to see it happening, so there is Association. It was formed as a result of the Housing a growing demand. Would you not say that anything Executive’s rural strategy of the early nineties. What which facilitated it would help? On the other hand was then the Department for the Environment was are you saying that the grants that come from the also committed to rural development in housing and Department for Social Development would not be other measures, and although the other associations available because you have only got so much money were perfectly capable of doing housing in rural to spread around? areas it is true that that new association, which is a Mr Williamson: Just to come back a little on the valued member of our Federation, has brought a premise there, I think I was careful to say that we unique focus to rural housing issues. It has would never meet every single housing demand, no specialised in doing one of these diYcult things matter what the priority. In my answer I made which is mentioned in my paper about factors which reference to the priority. I am sure you will know Northern Ireland Affairs Committee: Evidence Ev 31

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton that the currently accepted oYcial measure of association movement have been able to serious housing need is this thing called housing substantially boost what it has been possible to stress which is measured on the common waiting list achieve with the public budget. as 30 points or more. I would interpret meeting housing demand as being that anyone with any points at all has a housing demand but it is not Q77 Reverend Smyth: How much consultation takes considered serious enough generally speaking under place between a housing association and the the present system to warrant new development. I community where they have been asked to develop have forgotten the drift of your question; I am sorry. social housing or to operate it? Mr Williamson: Through the planning service and the requirements of the planning legislation there is Q75 Reverend Smyth: The pot of gold that is always a standard degree of consultation that is available. required with neighbours and with others in the Mr Canning: There is a limited pot of gold and I vicinity. I have been careful to answer your question. suppose if you spread that through a lot of new You talked about new development. There have organisations you would perhaps see a lot of issues been long-standing arrangements in place requiring arising that are unnecessary. To support the associations and the Housing Executive, I believe, to argument that has already been made Mr Hatch, consult their existing tenants on matters of housing and Mr Williamson meet their counterparts in management policy, so we take that for granted: England, Scotland and Wales and in the Irish consultation with the existing tenants is there and Council for Social Housing on a regular basis and has been for a long time. Your question was that is about sharing information, understanding specifically about new development. My answer is and learning about new initiatives, the new issues two-fold. There is the process through the normal that we tackle on an ongoing basis and learning how town and country planning legislation, in addition best to address those. I suppose our argument at this to which for several years now the Department for stage would be that we feel the Federation and its Social Development has laid down that associations members can adequately deal with the issues at hand must be able to demonstrate contact and liaison with and the challenges that we face but we are always community representatives in relation to planning open to new ways of addressing those. applications for new schemes going forward. Those Alderman Hatch: If we are not delivering our are the two methods by which associations consult programme, by bringing in outside housing their local people on new development. associations could we deliver the programme or would there be some other issue which prevents it being delivered? I think you should put that question Q78 Mr Beggs: You have indicated just how to DSD who are the people who control the funds successful the Federation has been in bringing in because we feel we can deliver the programme private finance. Is that increasing or decreasing and whatever the setup. could private finance further contribute to the demand for social and aVordable housing? Mr Williamson: The first point is that it is not the Q76 Reverend Smyth: Mr Hatch did say earlier that Federation that brings in the private finance; it is our they would have to be registered and yet we have members. Our members have been very successful at already been told that there are unregistered housing doing that. The trend has been largely up but associations as well as registered ones. We are aware, because the total amount of output of homes in the for example, of one body which certainly has last few years has been relatively low the private associations in England working in south Belfast finance dipped—I will not say correspondingly and recently they had a little bit of adverse publicity. because it is not a direct correlation, but the private Is it registered or unregistered? finance went down. I am pleased to be able to tell you Mr Williamson: If you are talking about the Lee that the private finance is well and truly on its way Hestia Association, that is not registered by the up again and the situation is that in this present Department for Social Development. If we can go financial year that we are just about to finish the back to the pot of gold analogy it gives me the amount of private finance will have been almost opportunity to make what I think is a key point at double what was attracted last year. There is no this stage, which goes back to what we said earlier. reason to expect any diminution in the rate at which No less than £235 million has been brought in to private finance is brought in. address social housing needs in Northern Ireland by the use of registered housing associations attracting private finance, £235 million of private finance that Q79 Mr Beggs: Is there any evidence that financial otherwise would have had to come from some other pressures or constraints have impacted upon the part of the public budget—education or health and ability to meet the targets set for the social housing social services—to achieve what has so far been new build programme? achieved. That is equivalent to near enough 4,000 Mr Murton: None. It is the exact opposite in a sense averaged-sized homes in Northern Ireland built to in that this will be the second highest level of private the DSD’s standards, which are good standards of finance that has ever been brought in and it may construction. Resources will always be limited and I actually be the highest level subject to the number of would urge you always to bear in mind that by using starts that go through by Thursday. I can say that mixed funding our members in the housing the availability of finance leads to the availability of Ev 32 Northern Ireland Affairs Committee: Evidence

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton new housing. It gives the associations the getting the benefits to which they are entitled. More wherewithal to put the stock on the ground, so it is can always be done but our movement is well ahead the contrary. of most, if not all, of the other tenures in Northern Ireland in terms of energy eYciency. Our members Q80 Mr Beggs: Would the ring-fencing of all funds are also taking steps in terms of quite innovative generated by social housing (rental income and materials such as photovoltaic cells in the Steelstown capital receipts) have a significant impact on area of County Londonderry. They have been addressing the need for social housing? installed on a pilot basis. There are some combined Mr Williamson: I would like clarification of that heat and power systems in place, but it is not enough. question, or maybe I can try to answer what I believe We would like to see more and we are more than to be the question. On the capital side there has been willing to go down that road. In terms of the second ring-fencing in the last few years of receipts from the part of the question, might package or design and voluntary sales policy of housing associations. Any build deals militate against energy conservation house that is sold, and there have been many houses improvements, my answer is that there are many sold under that voluntary sales scheme, has to be put types of design and build contracts which are into a ring-fenced account within the association’s possible and are in place and it just depends on the audited accounts and used for the provision of way that those design and build specifications and replacement homes either by purchase or by contracts are written. They could be written to have construction within three years. If it does not happen very high standards or they could be written in such within that period then the department reserves the a way that they just pass the DSD building control right to claw the money back for re-use generally. standards. There is that degree of ring-fencing of house sales proceeds within the housing association sector. Q82 Chairman: Would you be surprised to hear that Aside from that there has been a ring-fencing of the committee on a visit to Springfield Road looked money that comes in from rental income and for at a housing association development which used a many years the department has required design and build model that was quite old and was associations to set up what is called a rent surplus not energy eYcient, whereby residents had to fund and to account for that separately as part of its campaign for a better standard? audited accounts. The amount of money that is put Mr Williamson: As I said, there is nothing inherent into that rent surplus fund each year is subject to in design and build contract arrangements and Department for Social Development control. The procurement arrangements, to use the fancy term, department for many years has given the general that says they will produce a bad standard or a good instruction that 80% of it should be set aside for standard. It just depends on how those things are maintenance and repairs to the existing stock and designed and specified. I do not know the particular that continues to be the situation. The other 20% the scheme to which you are referring but I am prepared association can put into its general reserve for to believe what you say. In all fairness, it is one thing continuation or perpetuation of its general to talk about a design and build scheme that was objectives. The main point of that 20% is that in the done some years ago compared with those that are context of mixed funding, where there is substantial done to the present standard but, whatever standard financial risk or exposure to the association, it is to it was, whatever date it was, I am quite certain that give them a measure of cushioning against if it received housing association grant our unforeseen circumstances on the development scene. colleagues in the department would have made sure That is the degree of ring-fencing of which I am that it met the standards of the day. aware. Q83 Chairman: The houses are not yet built; this is Q81 Mr Beggs: You have already referred to the the point. The design and build model is so ancient lifetime homes standard. Is enough being done to that it does not meet the standards. incorporate greater energy eYciency and Mr Williamson: I would be astonished if that sustainability into new build social housing? Does received DSD approval. the use of design and build packages from developer Chairman: I think there is some discussion currently builders by housing associations militate against under way. this? Mr Williamson: More can always be done to Q84 Mr Beggs: There definitely will be more after improve the energy eYciency of homes. Housing today. association homes are by Northern Ireland Mr Williamson: I would be glad to receive details standards at the top of the tree in terms of energy of that. eYciency and the 2001 House Condition Survey of the Housing Executive confirmed that. That does Q85 Chairman: We shall give you the details of the not mean that housing associations are complacent committee’s visit. because they recognise that in terms of environment, Mr Canning: Can I supplement that, Chairman, by in terms of fuel poverty among their tenants, it is saying that within the last two years the department important to do the very best we can to get the have introduced an element of grant that has quality of the insulation up and to improve the contributed specifically towards measures to which incomes of the residents, for instance, by doing you have referred, and my own association, the benefit health checks to make sure that people are Choice Housing Association, since the beginning of Northern Ireland Affairs Committee: Evidence Ev 33

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton this year for every new build scheme is introducing housing along with other types of development. those standards for traditional procurement and Everybody accepts that the length of time it takes the design and build. We still face the diYculty of average planning application in Northern Ireland is accessing someone to enable us to obtain that grant much too long. Our members are by no means because there is not anyone in the jurisdiction who immune from that and have been arguing for that can provide the certification to make the grant claim, for a long time. I have already talked about the so we bring someone from Newcastle-upon-Tyne to Regional Development Strategy and PPS 12. I see enable us to do that. There is perhaps a little more that as having significant potential for improving the work for us to do there across the board to enable distribution of social housing across Northern the grant to be more readily claimed. Ireland and making sites available that might not otherwise have been available to providers in the social rented sector. Aside from the sheer Q86 Mr Beggs: Are there any issues for housing Y associations around the maintenance of existing administrative e ciency or otherwise of the stock and is there any maintenance backlog at planning service we think there are various reviews present? going on within the planning service in Northern Mr Williamson: The House Condition Survey of Ireland into administrative matters and dozens of 2001 to which I have referred reveals that the proposals have been put forward to improve small housing association stock is in very good order. So bits of the system. For instance, the liaison with the is the Housing Executive stock by and large. We do district councils in my opinion is very clumsy and not in the Federation carry statistics or a database unwieldy and can cause significant delay. The liaison about each and every housing association property, with the road service and sometimes the water so we are not in a position to say what is the service is very necessary but not always as joined-up maintenance position in each and every association, or as seamless as we would like to see it in the but we can use those Housing Executive statistics to housing association sector. The production of area assure you that generally speaking the housing plans is way behind the programme and although association stock is in good order. I have told you there are ambitious targets for putting that right it also that associations are required to set aside money still might take years to get complete coverage and in the Rent Surplus Fund and in another thing which even then we are in for a process of review. Those are comes under the so-called mixed funding regime. the sorts of issues. They are required to make long term financial Alderman Hatch: On the question of the liaison with provision for what we call the lifetime maintenance councils, the review of public administration in of their homes. There is financial provision being Northern Ireland might address that if the made as we speak for those long term issues even responsibility for planning were devolved to local though they could be 20 years away. The Housing authorities, regardless of what size they ended up to Council has been taking close interest in the be. That would cut out a layer of bureaucracy where maintenance programmes of housing associations. it takes two or three weeks for the planning cycle to There are broadly three types. There is the response deliver decisions. In our area, County Armagh, we maintenance on a day-to-day basis, there is planned are already seven years into the area plan and it is or cyclical maintenance, such as repainting, on a five not approved yet, so the review period is already year cycle typically, and there are the major repairs passing as we speak and it is still not sorted, so there which come along at diVerent intervals ranging is a big issue there. There was some element in it between 15 and 18 years through to the end of the life where the minister responsible indicated that there of a building. Each of those things is important and would be somebody responsible for dealing with the there are performance standards that the plans and putting a high precedence on that. That Department for Social Development lays down and has not made very much improvement in terms of monitors associations against. As far as I know in the turnaround time as far as planning and getting the Federation there is no large scale maintenance the process speeded up. We are still talking nine problem within associations. Of course, there can be months before we get planning approval. individual situations where tenants are not always Mr Williamson: Unfortunately, our members have Y happy and there are complaints procedures had di culty sometimes in getting supportive available for each association and that will lead on housing schemes through the planning system. The from a couple of days’ time ultimately to the so-called NIMBY syndrome is definitely alive and ombudsman, the Commissioner for Complaints for well in Northern Ireland just as much as elsewhere. Northern Ireland, if the complainant is still not This is not helpful. We look to civic leadership and satisfied having put the thing right through to we look to the planning service to face their board level. responsibilities in terms of seeing to it that if there are no valid planning grounds for turning down a supported housing scheme it should be given Q87 Mr Hepburn: What issues in the planning approval and it should be given that approval V system adversely a ect the development of social expeditiously. housing and what changes would you make in the planning system to try and improve the levels of social and aVordable housing? Q88 Mr Beggs: Where organisations have a good Mr Williamson: This is another big question. Simply public relations prior to planning applications being getting a faster, more eYcient planning system submitted generally speaking there is community would be a big help to the delivery of social rented support forthcoming. Ev 34 Northern Ireland Affairs Committee: Evidence

29 March 2004 Alderman Arnold Hatch, Mr Chris Williamson, Mr Arthur Canning and Mr Graham Murton

Mr Williamson: I take that point and that is fair produced the results that were hoped for. I think it comment. Our members are working away at that. would be fair to say, and I hope my colleagues will One of the diYculties with supported housing is that correct me if I am wrong, that while our Federation sometimes by the very nature of the objective of the Council has not addressed this issue in great detail supported housing it has to be very discreet and we because it has not really been put forward as a really do not want big publicity, or even minor publicity, firm proposal, we certainly think that the general about the nature of certain projects to avoid concept should be explored and the best method of intrusion into the lives of the people who need getting a workable solution should be put into place community support and non-intrusive services. for Northern Ireland because the aim that lies What Mr Beggs says is true but it can sometimes be behind the question is definitely one that we diYcult in that kind of situation to try and pave the subscribe to very strongly. way in that way. Q91 Mr Bailey: The University of Ulster has Q89 Chairman: But public relations is alive and well suggested that with overall home ownership in the on the Antrim case as far as I know; is that correct? region at 17% it might be timely to review the Mr Canning: Yes. I welcome Mr Beggs’ comments. purpose and function of the Co-Ownership Housing He attended one of the public consultation meetings Association. What is your view of that? Do you where we consulted the public prior to going for think there is anything to be gained by changing planning and we thank him for his support. Can I the scheme? make one additional comment as regards the whole Mr Williamson: I believe that Co-Ownership is about to planning process? We have in Northern Ireland a be interviewed by your committee anyway, so that is system whereby ten-year plans are issued covering one point. The second point is that it has been subject the various areas. Those remain fixed and what often to a number of pieces of research very recently and in happens is that by year six, seven or eight, perhaps fact there is one still under way. I believe that it has been even earlier, a lot of what was designated as land well researched. I believe also that there is a continuing potential for development, for whatever reason, useful purpose that the existing Co-Ownership scheme cannot be developed. Perhaps owners would not sell fulfils, and it might be more accurate to call it an equity- or there may be other complex issues. I would sharing scheme. Many people in Northern Ireland advocate that we consider the Scottish system where knows Co-Ownership. Our Federation feels that the they, I understand, review their plans and if, after existing model is working well and is serving a useful years one or two, land that has been zoned for a purpose and should continue. We also feel that we particular area and has been transferred will not be should not close any doors and if there are other ways available they then try and adjust that. I think it of doing things with the same broad intention they would be helpful if we could consider something of should be considered. that nature in Northern Ireland. Q92 Chairman: Mr Bailey’s mention of co- Q90 Mr Hepburn: Would you like to see a certain ownership housing seems a good opportunity for us share of all new housing developments designated to change the cast and concentrate on that topic. for social or aVordable housing? Alderman Hatch, can I thank you and your team Mr Williamson: That is a fairly fixed and inflexible and Mr Williamson and his team for providing us arrangement. Our Federation would certainly with some very detailed responses to the questions. endorse the idea of greater mix of tenures. We have They will be of great use to us. We have no wish to already referred to that several times in this session. substitute the work of either the DSD or the Whether or not a particular percentage is laid down Assembly but just supplement it and make sure that in legislation or in some subsidiary legislation I do the focus is kept on the needs of those within not know. Our Federation has not gone as far as Northern Ireland. Can we thank you for the time saying that because we want above all a system that you have given us this afternoon? It has been very achieves the objective. There is some anecdotal welcome and helpful. evidence from the Republic of Ireland in particular Mr Williamson: Thank you for your interest, that a system like that may not, at least initially, have Chairman.

Supplementary memorandum submitted by the Northern Ireland Federation of Housing Associations

FACTORS WHICH SEEM TO BE SLOWING DELIVERY OF THE DEVELOPMENT PROGRAMME FOR SOCIAL RENTED HOUSING

UPDATED 29 MARCH 2004 1. Housing Need 1.1 The greatest housing need is concentrated in a few relatively small areas of Northern Ireland. 1.2 With the exception of the “hot spots” it can be diYcult to identify and confirm housing need because it has become highly localised and can change quickly over time. This can happen, for example, when private landlords “buy to let” (often to people qualifying for Housing Benefit) in newly-developed private estates. Northern Ireland Affairs Committee: Evidence Ev 35

1.3 It can be particularly diYcult to establish whether housing need exists in rural areas. The process of testing for “latent demand” is lengthy and labour-intensive. 1.4 Only occasionally does the NIHE confirm that new sheltered housing schemes are required. This type of accommodation used to account for about 40% of all housing association development. 1.5 Obtaining confirmation of the need for supported housing projects has become conditional on obtaining assurances about future revenue funding. This is problematic even under the new (cashlimited) Supporting People framework.

2. Sites for Housing 2.1 Few sites are available in the areas of highest need and they usually command high prices or exhibit serious development constraints. Private developers are in a better position to purchase them than housing associations because fewer rules apply to them and they are less inhibited from taking calculated risks. 2.2 Community tensions and segregation severely limit the options for purchasing sites to relieve housing need. 2.3 Especially in rural areas, land-owners may be reluctant to part with sites, even if they have no plans to use them.

3. Costs and Grant 3.1 Land values have increased dramatically and housing associations must pay these higher prices, even for land in public ownership. 3.2 The cost of construction has continued to rise substantially because: — labour has been attracted to the Republic of Ireland; and — the construction industry in Northern Ireland has enjoyed a sustained period of activity. 3.3 The DSD’s Total Cost Indicators only crudely reflect the varying conditions in the construction market throughout Northern Ireland. The “norm” costs are standard for each District Council area and there can be sharp and unrealistic diVerentials at Council boundaries. 3.4 The average density of housing association schemes is significantly lower than that which the DSD assumes when setting Total Cost Indicators. This makes it more diYcult to achieve viable schemes and sometimes is the direct result of the housing need and mix specified by the Housing Executive. 3.5 On average, housing association development projects have become smaller (possibly because of factors 1.2–1.4 above). These generally require just as much development administration as larger projects and contractors’ tenders tend to reflect the diseconomies of small-scale building.

4. Planning and Roads Policy 4.1 The Regional Development Strategy and related Planning Policy Statements require compact urban forms with more “brown field” and less “green field” development. The former is generally more complex and expensive. 4.2 The “Quality Initiative” adds to the complexity of the development process (eg requiring co- ordinated action with other landowners to provide communal facilities such as open space). 4.3 Road and parking policy has changed and there can be considerable variation in how they are applied. 4.4 TraYc Impact Assessments and/or Environmental Impact Assessments may be required and take time to prepare. 4.5 The relationship between the Planning Service and District Councils is clumsy and can cause unnecessary delay. For example. District Councils defer commenting on too many planning applications and it takes too long for the Planning Service to issue the “green form” (confirming planning approval) after the relevant decisions have been taken. 4.6 Planning applications for supported housing have been irrationally opposed by local residents and local groups. This causes delay and such local hostility can cause schemes to be abandoned, even if planning consent is eventually granted. 4.7 The Planning Service, the construction professions and housing associations are short of skilled and experienced personnel. Ev 36 Northern Ireland Affairs Committee: Evidence

5. DSD Policy and Practice 5.1 Lack of clarity in the respective roles of the DoE (now DSD) and the NIHE, especially in the four years following the government’s Housing Policy Review of 1996. 5.2 Tighter interpretation of the rules on procurement of professional services and construction work. 5.3 Continuing requirement that housing associations employ NIHE Practice Groups as consultants for schemes to be built on land transferred from Housing Executive ownership. 5.4 Poorly-planned mandatory introduction of the Constructionline system. 5.5 Requirement that, in addition to the statutory public consultation through the Planning Service, housing associations must consult the community before obtaining DSD approval for their projects. 5.6 Disruption of existing procedures by sponsoring crude competition between housing associations while failing to allow them to implement the UK government’s policy favouring partnership (Ref Sir John Egan’s report “Rethinking Construction”). 5.7 Chronic policy vacuum in relation to the financial sustainability of supported housing schemes. Dependable streams of revenue are required as well as the capital finance. Even the new Supporting People framework will not completely resolve this problem because revenue will not be guaranteed for more than three years.

6. General Points 6.1 Policy-makers should focus on how long it takes for people in serious housing need to be accommodated in a suitable home. The number of new homes built for social renting is a much less important factor than the number of re-lets occurring in the existing stock of NIHE and housing association homes. 6.2 Housing development usually takes 2–3 years so financial and administrative systems should allow for this. 6.3 In the light of 6.1 and 6.2, the DSD and NIHE should allow associations to purchase more existing satisfactory dwellings, especially in the areas of high need where it is most diYcult to develop new social rented homes. 6.4 Civil disorder has delayed the commencement of some new housing association homes. 29 March 2004

Further supplementary memorandum submitted by the Northern Ireland Federation of Housing Associations

Many thanks for your letter of 29 April 2004, following up three issues which arose when we gave oral evidence on 29 March. Our comments on the three issues are as follows:

(i) Statistics Relating to Lettings by Housing Associations Please refer to the enclosed page entitled “NICORE 1998–2003 and Census 2001”. The Census 2001 bar chart at the bottom of the page vividly confirms the important point we made in our evidence—a high proportion of older people is Protestant and a high proportion of younger people is Catholic. This pattern is reflected in housing association lettings but an important secondary influence is the fact that a sizeable proportion of associations’ stock is sheltered accommodation for senior citizens. It is important to note that NICORE measures “flows” while the Census measures a “stock”. Secondly, the NICORE statistics are for households whereas the Census statistics relate to individuals. (Unfortunately the relevant 2001 Census statistics for households are not yet available). To be more precise, the NICORE system records key characteristics of the households who move into rented accommodation owned by registered housing associations over a particular period. In contrast, the tables which are currently available from the 2001 Census of Population relate to all individuals who were living in Northern Ireland on the Census date. These diVerences mean that caution must be exercised when comparing the two sets of figures but we have made them as meaningful as possible by considering the NICORE statistics for an extended period of time— namely five years centred on the Census date. The Federation has tried to present the information simply and clearly. If the Committee requires more detailed analysis please contact me. Northern Ireland Affairs Committee: Evidence Ev 37

(ii) Rule 84—Background Information and Implications The Common Selection Scheme is the system by which all applicants for permanent tenancies of rented accommodation owned by the Housing Executive or registered housing associations are ranked in terms of their housing need and oVered accommodation in areas of their choice. It came into operation in November 2000 after considerable research and lengthy discussions between the Department of the Environment (now the Department for Social Development), the Housing Executive, the Federation of Housing Associations and the Health and Social Services authorities. Although the system is comprehensive, those who devised it recognised that unforeseen or extreme circumstances could arise for which the normal arrangements may not be appropriate. Therefore the Rules of the Common Selection Scheme (which were formally approved by the Department of the Environment, as required by legislation) includes Rule 84 which allows the Board of the Housing Executive, after consultation with the Department of the Environment, to “make allocations otherwise than in accordance with this Scheme”. In particular the Board may, after consultation with the Department, authorise the making of allocations in specific designated “diYcult to let estates”, to Applicants who have not applied for housing in that estate. Rule 84 applies equally to registered housing associations provided they have obtained the prior approval of the Department of the Environment. Experience over the last 30 years in Northern Ireland indicates that when housing applicants feel worried about their personal security or the safety of their families they are unlikely to accept tenancies oVered in areas dominated by people whose “perceived community aYliation” is diVerent. This consideration tends to take precedence over the usual housing need factors when applicants decide whether to accept oVers of accommodation. The overall result is that areas of social rented housing have become highly segregated and the number of housing points required to obtain a tenancy in one estate may be much higher than the number required to receive an oVer for another estate nearby. If it is proposed to develop a new estate which is integrated in terms of perceived community aYliation, it is quite possible that applicants from one community background will, in general, have more housing need points than applicants from another perceived community aYliation. To achieve a balance in the initial and subsequent lettings, therefore, the normal allocation rules of the Common Selection Scheme would probably have to be set aside using Rule 84. Otherwise, the social landlord making the allocations could be accused of maladministration because some applicants with more housing need points would be by-passed. (iii) Standards for Housing Association Development I believe I can best assist the Committee by responding to the several queries at two levels: (a) general policy (as requested in your letter of 29 April 2004); (b) the specific scheme which was mentioned when the Committee visited Springmartin in early March 2004. (a) General Policy on Design Standards and Procurement To qualify for Housing Association Grant, registered associations must comply with the Housing Association Guide, which is issued by the Department for Social Development. The DSD updates the Guide from time to time and a comprehensive revision is under way at the moment. The Guide lays down minimum standards of design and specification. Many of these standards are significantly higher than the minima required by the Building Regulations and the quality of new housing association accommodation compares favourably with housing developed for first-time buyers. The standards include energy eYciency measures but the Department for the Environment encourages housing associations to achieve the Ecohomes standard (in which three grades are available—“Good”, “Very Good” and “Excellent”). The Housing Association Guide also has requirements about how associations may procure development. “Design and Build” is one of the acceptable procurement options and the Guide (Appendix 15 to Part 2) defines it as follows: “A design and build package contract is an arrangement whereby a building contractor contracts both to design and build a housing scheme for a fixed and inclusive price on the basis of a brief provided by the Association. The contractor may be selected by means of competitive tendering or by direct negotiation”. Ref 4.3.4 of the Guide adds that design and build “oVers advantages in early completion, cost, single point responsibility, risk avoidance and damages recovery. Design and build negotiated tendering may be advantageous where a contractor/developer owns a site which is particularly suitable for the proposed development and sale is conditional upon the firm executing the design and construction of the dwellings”. The majority of housing association development in Northern Ireland, however, is undertaken through another procurement option in which the association commissions consultants to design and specify the scheme and then invites contractors to submit tenders for the building work. It is the responsibility of the consultants to supervise the construction and control costs. Ev 38 Northern Ireland Affairs Committee: Evidence

(b) The Specific Scheme

Since receiving your letter of 30 April I have obtained information on the project which a community representative mentioned during the Committee’s visit to Springmartin, Belfast and which was raised in questions 82–85 of the oral evidence given by NIFHA on 29 March.

Since 1995 the Housing Executive has been selling sites from its land bank to facilitate development by housing associations. The housing mix for each scheme is laid down by the Executive and the association is normally required to employ the NIHE’s Design Team as consultants for the project.

In this particular case the Woodvale and Shankill Housing Association is working with the NIHE Design Team to provide six bungalows. The chosen procurement option is the “traditional” route, not “design and build”.

The association recognised the desirability of going beyond the normal standard of energy eYciency and therefore asked the Design Team to revise its original drawings with a view to achieving the “very good” category of the national “Ecohomes” standard. The Association hopes that this will prove feasible within the Total Cost Indicator set by the Department for Social Development. 10 May 2004

NICORE 1998–2003 AND CENSUS 2001

Census NICORE 1998–2003 Protestant Catholic Other Protestant Catholic Other TOTAL 48% 39% 14% 48% 42% 10% 16–24 39% 46% 15% 39% 52% 10% 25–39 43% 41% 16% 35% 53% 12% 40–59 49% 37% 14% 40% 48% 12% 60–74 58% 33% 9% 56% 36% 8% 75 plus 63% 28% 8% 72% 22% 6% Definitions Census 2001 Total Population Aged Over 16 Religion Protestant—Presbyterian, Church of Ireland, Methodist, Other Christian Other—Other religions, no religion, religion not stated NICORE New Households—1998–2003 Religion Other—Mixed marriage, Other religions, no religion, religion not stated Comparison Census 2001 and NICORE 98/03 60%

48% 48% 50% 42% 39% 40%

30%

20% 14% 10% 10%

0% Protestant Catholic Other Protestant Catholic Other Census NICORE 1998 - 2003 Northern Ireland Affairs Committee: Evidence Ev 39

Census 2001 70% 63% 58% 60%

50% 49% 46% 16-24 43% 41% 39% 40% 25-39 37% 33% 40-59 28% 30% 60-74

20% 75 plus 15% 16% 14% 8% 10% 9%

0% Protestant Catholic Other NICORE 1998 -2003 80% 72% 70% 56% 60% 53% 16-24 52% 48% 50% 25-39 39% 40% 40% 40-59 35% 36% 30% 60-74 22% 75 plus 20% 10% 12%12% 8% 10% 6% 0% Protestant Catholic Other

Memorandum submitted by the Northern Ireland Co-ownership Housing Association Ltd

Homes and Housing:Policy and Supply The Home Ownership Task Force Report (AHomeofMyOwn,November 2003) appreciated the need for policy and delivery to be flexible and responsive to local and regional housing markets. In addition to aVordability, the HOTF recognised that there were other important barriers to accessing aVordable home ownership and, importantly, recommended integrating public policy and market solutions. Homes are more than bricks and mortar; they provide access to a range of services and to communities. Housing has a macroeconomic impact. The final Barker Report has just been published (Kate Barker, Review of Housing Supply, March 2004) and deals with these issues. The report was fundamentally concerned with longer term issues of unresponsive and weak housing supply rather than simply the current house price cycle, and shows how: — A weak supply of housing constrains economic growth and worsens aVordability. — House price inflation has made home ownership increasingly unaVordable for many groups in the population, particularly first-time buyers, with knock-on impacts for private sector rent levels and demand for social housing. — Diminishing market aVordability has a direct impact on social exclusion and on the housing opportunities available to young people and others. Ev 40 Northern Ireland Affairs Committee: Evidence

Numbers as primary housing delivery targets haven’t worked particularly well in recent years, for complex reasons. Barker recommended that government establish a market aVordability goal rather than fixing on a specific number of homes to be provided, in other words focusing on outcomes rather than outputs. We have lobbied in recent months for a regional Homes Task Force with the same emphasis and now look forward to the upcoming consultation process as to how an aVordability goal might be delivered within the Public Service Agreement process. Wider aVordability for all cannot be achieved without increasing supply. Consequently we also welcome the ODPM’s commitment to begin to put in place greater investment in social housing as part of the 2004 Spending Review. Locally, DSD has indicated it will bid for an eVective doubling of baseline funding for Co-Ownership within that review process, an amount suYcient to deliver 600 homes annually. However, in recent years DSD has encountered increasing diYculty when bidding for Co-Ownership, partly we believe because the extraordinary synergies between the scheme and government policy objectives have not been widely appreciated across the machinery of government. In this regard, Co-Ownership’s uniqueness has proved a clear disadvantage on the field of social housing providers.

Co-ownership

Key Supply Issues 1. AVordability. 2. Mainstreaming regeneration and sustainability. 3. Delivering high standards and high value. We are the regional shared ownership provider, with the necessary accumulated expertise and a product and service tailored to the Northern Ireland market. Within our corporate strategy we aim to deliver the highest value for money in terms of our service to the local community, proving that Co-ownership is — the value for money housing option for government, levering significant levels of funding and oVsetting the cost of social housing for rent; and — value for money for prospective shared owners, giving them housing choice and access to a decent, aVordable home. Our core strategic objectives for 2004–07 take this forward: — Providing aVordable housing choice on a regional basis. — Targeting resources to greatest need. — Working in partnership to tackle local market issues and secure the optimum supply of new build aVordable housing. — Delivering a comprehensive value for money housing option that levers in funding and oVsets the cost to government of social housing for rent.

Providing aVordable homes for low income households Owner occupation remains the tenure of preference for most people, even though for some their goal may be hard to achieve. As a result we are working proactively with the DSD, Housing Executive, housing associations, private developers, community groups and other housing interests to deliver aVordable housing choice through shared ownership, right across Northern Ireland. There is a very real market for shared ownership here as an intermediate step to help purchasers into decent, aVordable homes and then onwards into full private ownership. With the house price to incomes gap still widening, localised hotspots springing up and forecast interest rate rises we anticipate increasing pressure to bring aVordability issues back up the NI housing policy agenda. The proportion of first time buyers entering the housing market is traditionally taken as a indicator of aVordability, and this has now fallen significantly from 59% in 2001 to 26% in 2003 (Source: Council of Mortgage Lenders). Should this situation be allowed to continue, there is a real risk that the market could seize up. Increased low cost home ownership activity would enable the entire market to transact more freely. At the same time those aspiring first time buyers who did make it into home ownership earned above average incomes. For many people in work but unable to aVord home ownership that aspiration could still be achievable through Co-ownership—there is a marked contrast between the average incomes of full ownership and Co-ownership purchasers (Table 1). Co-ownership has a big part to play in bridging the aVordability and savings gaps. A glance at average weekly household incomes further illustrates the distinction between the various tenures (Table 2). Northern Ireland Affairs Committee: Evidence Ev 41

Another indicator of aVordability issues and of how Co-ownership helps to address them is evidenced by the proportion of our recent purchasers who were single adult/single income households: 57% in 2003 compared to 34% of NI households. Equally, Co-Ownership has the flexibility to meet a range of social needs—15% of purchasers in 2003 were lone parents (compared to 14% of NI households). There are recognised mechanisms for establishing demand for social rented housing. Waiting list numbers are rising, as is the proportion assessed as in housing stress. However, in the past there has been no systematic public policy eVort to identify demand for specialised housing needs in Northern Ireland such as shared ownership, and so there is currently no such established mechanism for Co-ownership demand. The CIH study referenced below identifies a minimum demand of 600 annually based on past activity as a reasonable starting point, while the Housing Executive (linking demand with aVordability and demographic trends) anticipates that demand will rise. We welcome the Housing Executive’s work in widening housing needs assessments to refer to specialised housing needs within the draft area plans because we support the principle of research to establish a sound evidence base for housing policies. For our part, we are working to ensure that our contribution to the Northern Ireland housing evidence base is robust and relevant and will strategically support the future delivery of aVordable homes on the ground. In 2003 the Department for Social Development commissioned two independent studies into Co- ownership—one from the Chartered Institute of Housing on eVectiveness and one from the University of Ulster on value for money, with which we co-operated fully. Co-Ownership scored highly across a range of measures in both studies, because we as an organisation are keenly aware of the responsibilities that come with our privileged position as a regional provider and constantly aspire to fulfil them. In 2004, with our help, the Housing Executive will be carrying forward a further research project with the objectives of: — supporting Co-ownership’s value as a vehicle for enabling tenure choice and promoting sustainable home ownership; and — contributing to the evidence base for future policy initiatives.

Achieving high standards and high value Our property value limits and individual case assessment process focusing on aVordability ensure that we are active at entry level within the housing market. Co-ownership value limits are significantly below the Total Cost Indicators applied to housing associations building for rent and were last raised in May 2002. We understand they will not change significantly for at least another year, but at the time of writing we anticipate DSD confirmation shortly that the limits will be discretionary for partnership regeneration projects. Otherwise our ability to become involved with development schemes and introduce mixed tenure (shared ownership in addition to rented social housing) would be greatly hampered. We place particular emphasis on the condition of stock purchased through Co-ownership because, unlike properties built for rent, the purchaser retains responsibility for repairs and maintenance. We ensure that the homes we acquire for our purchasers are of an acceptable condition through a comprehensive bespoke valuation with any necessary repairs to be carried out as a pre-condition of purchase, and that they are maintained post-purchase through external condition checks. We find that our purchasers generally have great pride of ownership and usually need little encouragement to “keep up” their homes. To do its job, Co-ownership must provide value for the 3 key parties involved — Government. — Commercial lenders. — Individual purchasers.

Government — The level of government subsidy required to provide a Co-ownership home is slight in comparison with the much higher level of subsidy required to fund a unit of social rented housing where, in addition to the higher capital grant, an ongoing subsidy to the tenant is likely in the form of housing benefit. In 2003–04, the average input from Co-ownership per property purchased was £33,385. — While the funds Co-ownership receives from the Department for Social Development are in the form of Social Housing Grant, in practice it is more of an interest free housing loan which is fully and surely repaid. Furthermore, by virtue of their investment in property, the funds loaned make possible a substantial capital return which is itself in turn ploughed back to provide further Co- ownership homes (Figure 1) creating extraordinary value for money. During 2003–04 we received £7.9 million in housing grant and returned £9.9 million to the Department for Social Development. Indeed, this fits the pattern from the previous 10 years when we returned 20% more than we actually received, making Co-ownership a net contributor to the Northern Ireland social housing budget to the tune of £18 million. Ev 42 Northern Ireland Affairs Committee: Evidence

Commercial lenders — Over the years we have built close working relationships with lenders and established a reputation for excellence and consistency in case management, which ensures that there is no disproportionate administrative input required from lenders in Co-ownership cases. Our proactivity ensures that the risk to lenders is minimal, with the consequence that most have maintained a long-standing involvement in the market. This is a quite diVerent situation to that in other UK regions; consequently we are all the more appreciative of the Council of Mortgage Lenders’ public support for Co-ownership here as the sole provider of low cost home ownership.

Individual purchasers — Investment in equity can generate a substantial and unique return for low income households with little spare cash for other forms of savings. The knock-on eVects can be massive. In 2003 from around 900 Co-ownership homes valued, we estimated an average return for our purchasers of £16,250 on their initial equity investment. Many of them were able to take advantage of that beneficial change in their circumstances by moving onwards into full home ownership. 75% of Co- ownership purchasers have been able to staircase so far, which contrasts markedly with staircasing figure of less than 10% in England.

Working in partnership to address local specialised housing needs in both urban and rural contexts, tackling local market issues and securing the optimum supply of new build aVordable housing for local people Homes are more than shelter; they provide access to a range of services and to communities. We are committed to ensuring that Co-ownership going forward carries through New TSN policy, not only socially but also spatially. Historically, we have provided homes for purchasers in both urban and rural areas. Now we are focusing in on urban and rural areas of need. We are actively encouraging developers to build aVordable homes for subsequent purchase through Co-ownership by identifying and channeling demand in urban regeneration areas with the particular support of local residents’ associations and community groups. In rural areas we are scoping local market issues and working together with the other main rural agencies to produce an appropriate response. The need is there—out of the 23 rural areas where the Housing Executive carried out latent demand testing in 2003–04 to investigate hidden demand for social housing, 22 returned an interest in housing through Co-ownership. In both urban and rural areas we believe co-operation and inclusion are key to arriving at an integrated market solution. Our total of 18,000 homes provided through Co-ownership to date is an extraordinary achievement in the regional context, and no less so is the level of staircasing activity: over the last five years an average of 638 homes annually or 15% of total housing stock have staircased fully compared with around 4,000 units or 5% per annum jointly for England and Wales (ODPM, Evaluation of the Low Cost Home Ownership Programme, September 2002). Experience has led to expertise and we have been able to develop highly eVective ongoing advice/support services for our purchasers and housing management practices to maximise staircasing potential. There is a clear benefit here for both us and our purchasers: they are able to maximise the value of their equity investment while we are able to maximise the number of homes we can purchase for others by committing the surplus equity proceeds to this purpose after repayment of the grant involved to DSD. Co-ownership is now built into the mainstream planning process. The Regional Development Strategy 2025 and latterly PPS12 Housing in Settlements address all housing and recognises the need for an inclusive, strategic approach which mixes tenure types to cater for a range of identified needs.

Implications Uncertain and indeterminate funding over recent years has greatly impeded this organisation’s ability to eVectively fulfil its remit; not only because, of course, we would have liked to receive more money but also because, by virtue of the contractual commitment and timeline involved in buying properties for people, audit prudence stipulates that we do not contract to purchase a home for someone unless we have the requisite public funding in place to make good that commitment when the time comes. Therefore, the number of homes provided each year has had to fluctuate in line more with funding than with demand (Table 3). Public Service Agreement commitments deal with units and two years ago the commitment was there to fund 600 units annually through Co-ownership. In 2003–04 the commitment was for 300. This halving of supply was not a policy decision or in response to demand evidence but solely dictated by the level of funding available. For the year ahead we realise that DSD hopes once again to be able to fund up to 300 homes but it is entirely dependent on available grant. As an organisation we have repeatedly demonstrated capacity to manage activity in line with available funding—up or down—but without a reliable indication of funding, even for each year in progress, cannot employ our resources to best eVect within a wider strategic framework for housing. Northern Ireland Affairs Committee: Evidence Ev 43

Co-Ownership enables: — a more flexible housing market which adapts to and reflects the needs of the community; — access to decent, aVordable homes which better meet individuals’ aspirations both in tenure and in location within communities; — a more equitable distribution of housing wealth; — optimal supply of aVordable homes in areas of need.

Table 1

NI Mortgages Average Income All first time buyers £24,397 Co-ownership £13,446 Source: CML Survey of Mortgage Lenders

Table 2

Weekly Public rented Buying with Buying with All households Average Co-ownership mortgage Household Income £208 £317 £620 £429 Source: NISRA NI Expenditure and Food Survey 2001/2: NICHA

Table 3

Year Grant Funding Homes Provided 2003–04 £7.9 million 450* 2002–03 £12.9 million 801 2001–02 £9.9 million 645 * Estimated outturn w 29.02.04

Figure 1 Grant as Percentage of Total Investment in Co-Ownership Properties

100% 90%

80% 70% 60%

50% 40% 30% 20%

10% 0% 1993 1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 Private sector 8.8 9.3 9.0 8.1 11.6 14.5 15.9 15.3 28.6 28.6 16.1 NICHA 1.9 0.3 1.7 1.2 3.4 7.6 8.7 6.4 9.5 13.0 7.1 Grant 4.5 6.9 6.2 5.5 5.3 3.6 3.6 6.2 9.9 12.9 7.9

Source: NICHA March 2004 Ev 44 Northern Ireland Affairs Committee: Evidence

Witnesses: Mr Alan Crowe, Chief Executive, Mr Brian Harris, Vice-Chairman, Mr Maurice Butler, Board Member, and Ms Lynn Patterson, Information OYcer, Co-Ownership Housing Association, examined.

Q93 Chairman: Ms Patterson, gentlemen, we are need and it also shows that we have the right people very grateful for your presence, particularly as this who are on the margins of home ownership coming has been a very long afternoon. I am grateful to you through our scheme. The aVordability index, for holding back and still being with us. You will Chairman, is probably as good as we are going to get have heard the end of our session with the housing at this moment in time. associations. We just touched on co-ownership and we hope in the next evidence session to hear a little bit more. Can I start by asking a general question Q94 Chairman: I asked the question because the about determining demand for shared ownership, V because unless it exists somewhere we have not DSD are going to bid e ectively for a doubling of looked we cannot find any established mechanism base line funding for co-ownership within the 2004 for determining the demand for shared ownership? Spending Review. How will they be able to prove Why do you think there is no accepted or established that need given what we have said about the lack of mechanism for determining demand and how does an established mechanism, because spending reviews that help you to distinguish between need and are known for people wanting figures and analysis, demand for shared ownership if there is no accepted in other words, established mechanisms? If they are mechanism? going to bid for a doubling how are they going to be Mr Crowe: You are not alone there, Chairman. A lot able to warrant that doubling? of academics have basically said the same thing, that Mr Crowe: The agency has been going very it is nearly impossible to come up with an established successfully for 26 years, so there is a track record mechanism for demand. It is important to recognise there of what has come into the scheme and what that we are an agency. Although we are called a staircases out of the scheme, so there is factual housing association we are a completely unique information for it to get experience from that. In organisation in the United Kingdom with a unique terms of the average level of demand we are talking equity-sharing programme. Over the past 26 years about several hundred units. Two years ago we got the market has spoken in essence because we would funding of £12.9 million. Last year we received reckon that in that period there has been an average funding of £7.9 million and this year we have been demand of several hundred households coming given an intimation that the funding will be, to start V through the scheme every year, so that is a good o with, just over five million, so we have gone from track record. As to the fact that the academics 600 houses to 300 houses to 200 houses. This flies in cannot come up with a mechanism as an answer, I the face of government policy. Baroness Dean’s am certainly not going to put myself in their place. report with the Home Ownership Task Force has However, there is an aVordability index which the come out quite categorically stating the need to University of Ulster has worked up in conjunction enhance shared ownership as a way of improving the with the Housing Executive and that aVordability supply of aVordable social housing throughout the index looks at house price inflation, incomes and United Kingdom and integrating it into the interest rates. It probably is as close as we will get to mainstream housing policy. We as an agency are providing a source of information that will show unique in the whole of the UK in that we are the only where there are aVordability gaps, and where you regional body that socially and spatially has have aVordability gaps that in itself creates need. We delivered for the last 26 years, so it seems very as an organisation are investing in geographic strange that we are having this conversation information systems which allow us to plan socially whenever we have delivered on all fronts and I and spatially to target our resources towards the welcome the University of Ulster’s remark as I also greatest need and where those aVordability have another remark which is more up to date based problems are. Recently in every quarter the Bank of on research on which the ink has barely dried on the Ireland has also produced indices and in the recent page. There is a very substantive piece of publication Northern Ireland Housing Market— information and research that shows what the Review and Perspectives 2004–2007, which you have demand has been for co-ownership. If we tie that in probably had a chance to review, the Housing with the aVordability index and we tie in working Executive have said categorically that there is an with the Housing Executive then we are going to be increasing demand for co-ownership in a time when able to target resources socially and spatially interest rates are set to rise, so there is every throughout Northern Ireland. Some 18,000 likelihood that aVordability is going to become more households have been put through this agency over and more of a problem. Within Northern Ireland we the last 26 years in a population of 1.6 million. I have an average income of £22,308. The average speak not as the public sector but from 19 years in house price in Northern Ireland is round about the private sector. I speak very proudly of an agency £106,000, so you have a multiple of five times there. that has delivered on all fronts. If there is anything Banks are really not comfortable lending more than that this committee can take away from today, it is three to three and a half times income to a single probably a business model that should be integrated person, two and a half times to a joint income into mainstream policy. situation. Co-Ownership has two-thirds of that Chairman: And it looks like Co-Ownership schemes average income coming through its scheme. The do make an impact on reducing waiting lists for average income of the people we help is around social housing. It is another weapon in the armoury £13,500. That shows that we are targeting social or tool in the kitbag to reduce waiting lists. Northern Ireland Affairs Committee: Evidence Ev 45

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson

Q95 Mr Beggs: Do you foresee any diYculties problem we immediately have a one-to-one meeting should the Co-Ownership scheme be extended to with the individual to see if we can work together to housing associations? sort out their particular financial problems. It is a Mr Crowe: We have a unique body which is diVerent diVerent form of approach and we have the from the mainland of the UK and Baroness Dean’s advantage of volume and expertise, not just Home Ownership Task Force report basically was expertise in terms of our staV but also expertise in saying that there needs to be a more focused, our structure, in our computer systems and streamlined approach to shared ownership. The everything of that nature. I would not want the reason why it has not worked to the same extent over committee to understand that it is the same as on the mainland is that you have so many variations ordinary housing. The word “unique” has been on the theme, you have got so many organisations used. It is unique and it is slightly diVerent from any attempting to do it and eVectively you are getting other form of shared ownership that pertain across shared ownership delivered in tens and twenties. the water because we deal with ordinary houses. Here you have an expert regional body which is Walking down a street you would not know which controlling the whole process from start to finish the was a Co-Ownership house and which was an whole way through and delivering for that region. owner-occupied house. We are a form of social Over on the mainland you have got many diverse housing that disguises the fact that it is social bodies and therefore the solution is diluted, not as housing and this has tremendous advantages for comprehensive and not as focused, so if you try to integrating the particular family into the use the benefits of our model and put that into a community. They are not seen as diVerent. They are national context, taking into account Baroness the same as the rest of the street and it is an ordinary Dean’s recommendations whereby she has come street, it is not a street within a particular local down to say that they want to increase supply, create authority housing-type situation, so we do feel we a low cost home ownership framework and menu of are special. Let us not use the word “unique”. products, information and advice, funding and “Special” is perhaps a better word to use. targeting of receipts, programme delivery and management, and sustaining home ownership, I Q96 Chairman: You have said you do well. You would say that that would not be the way we would certainly do. As much as 75% of your 18,000 recommend it to be delivered. We are delivering on Co-Ownership purchasers have been able to all fronts and have been doing for 26 years. To break staircase to full ownership. That compares with a that up would create operational complexities, legal figure for England and Wales of less than 10%. Why complexities, and basically a very messy situation. do you think that is? The fact that Northern Ireland has led the way by Mr Harris: Can I add a supplementary to Mr Begg’s using a unique regional body to deliver this question? I am the Vice-Chair of the Association. In programme is something that should be built upon the Northern Ireland context which Mr Beggs raised Baroness Dean’s task force recommendations and I would just like to say that in my opinion the lenders also tied in with the Barker review. The Barker would not welcome additionality into this very small review talks about supplying housing. We have been market in a small region of the United Kingdom. We delivering 18,000 households as a body over the past have established over 26 years great associations 26 years. That success stands on its own merits. To with the various lending institutions and I do not integrate that into other housing associations may think the big names like Abbey National and dilute their ability to work to their strengths, and Halifax and all the others would want to be involved particularly with the present background I think we in one-oV situations or small-scale situations with are going to need to work to strengths rather than the plethora of housing associations that we have potential weaknesses. heard about in the previous presentation. Mr Butler: We do not see co-ownership as an easy Ms Patterson: That is the feedback we have received operation but, because of the experience that our from some of the major lenders. The value of the association has and because we are totally focused scheme is in the working relationships. Uniquely on it and because we have a staV that is trained to amongst housing associations we deliver our deal with it, they are totally focused; we do not deal product through young people, through with any other form of housing, we think we do it businessmen, through community groups, through well and we think that our track record has proved financial advisers, lenders, solicitors, valuers, all that we can do it well. It is not easy. The mechanics sorts of people. We have to work very closely with of it are not easy. It is a more diYcult form of them for the credibility of our organisation and for housing in legal terms and in operating terms than the value of the scheme ongoing throughout the life perhaps straightforward housing. We have a staV of the person’s tenure with us. That is very diYcult who are now expert in dealing with it, and because to achieve and it has taken a long time to achieve it, we deal with it on a volume basis as well it makes it which is one reason why the Council of Mortgage much easier to deal with. If I could take one Lenders were so supportive of the Co-Ownership example, we target what we call our participants, our Housing Association. In other words, it is because of leaseholders, with visits on a regular basis. No other the expertise that credibility is there. institution like a mortgage company would make Mr Crowe: You can see that there is serious household visits to see the state of repair of the commitment around the table. That needs no property, to see if the household has any particular endorsement other than from The Council of problems. Indeed, when we do have a financial Mortgage Lenders, and the fact is that the success of Ev 46 Northern Ireland Affairs Committee: Evidence

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson the scheme is because it has been one body Mr Crowe: What has been proven over many years is promoting it. If we are going to follow Baroness that if we are receiving a decline in funding obviously Dean’s task force recommendations where there is a that reduces our ability to utilise the benefits of the focus on shared ownership as part of that, diluting scheme for Northern Ireland. In terms of the that would not achieve those objectives. Coming on aVordability issue, there is a clear aVordability to the staircasing point, right from the start with problem within Northern Ireland with an average somebody walking through our doors we have a house price of £100,000. With an interest rate that is detailed interview process both at the start of the likely to go up over the next couple of years that is process and at the end of it. We have something like going to make those issues sharper. Therefore, a thousand visits to all our leaseholders every year. having an organisation like this, as Maurice is We continue to keep them informed, particularly saying, acts as a bridge. There has never been a more about the benefits of staircasing. Most of the people important time for funding the organisation, which that come on to our scheme tend to staircase fully to is a progressive agency. It changes people’s lives, home ownership within a three to 10 year period and people who are on low average incomes, who leave we actively promote that because that is the whole with an average equity stake of about £16,000 to go success of the scheme, that we are bringing in people into full home ownership. Therefore, if we are given V who were at the margins of home ownership and the right funding we can a ect the supply of V promoting them through home ownership as much a ordable housing in a couple of ways. First, it as possible. That has very positive impacts on the reduces the problems in terms of the house sales supply of social housing, on waiting lists and again scheme we talked about in the Housing Executive. that is because we proactively manage that situation. They have a scheme which is reducing their stock I think we turn over at least 20% of our stock every levels. There is every opportunity for us to interface year in staircasing compared to an average of 5% with the Housing Executive and perhaps use that elsewhere, but that is again because you have got one discount through co-ownership whereby people move, still within the area, into an aVordable house agency focusing on the scenario. through our scheme but the actual house remains within the Housing Executive stock. The other issue Q97 Chairman: Dare I suggest that you have been so is in terms of new build. First time buyers have fallen successful with staircasing that some would say that now to an all-time low of 26% of the housing market. co-ownership in Northern Ireland is simply a means A few years ago that was over 50%. That is creating of enabling people who would otherwise have a time bomb. Where are these people going to go? If bought to buy sooner, bigger, better, that your we reduce the solution through co-ownership the group are people who would have been in the choice is quite clear: they stay in private rented or V market anyway? social rented and that is it. We can a ect the supply Mr Crowe: We should not undermine the interview by having the right funds whereby we can interface process. Whenever we have people come into Co- with various agencies at the beginning. This is Ownership they go through a very detailed interview something that is indicative of the mainland policy with our staV who are very well trained. If it was any in the Thames Gateway project, etc, where the agencies are brought together at the start of the way aVordable for them to go into full home project and the action is implemented and agreed ownership we would recommend that they do that. from there and funds agreed and that delivers on the The very fact that the average income of the person ground. We have this constant funding problem coming through the scheme is £13,500, two-thirds of which does not allow us to utilise the benefits of the the Northern Ireland average, and also the fact that scheme and promote regeneration and sustainable the average price of the property we are purchasing communities on an urban and rural basis. Out of our is £70,000, shows that it is by far and away targeted 18,000 properties 3,000 of them have been in rural at the right people who are on the margins and that areas, 15,000 in urban areas. is what is being delivered. If we have people that can Mr Butler: It must not be forgotten that we are go into full home ownership we make sure that that relatively low cost because automatically in all our is the recommendation when we assess their cases there is 50% minimum private investment eligibility for the scheme. because every time we buy a house we are bringing Mr Butler: We would see ourselves as a bridge, if you 50% private investment into the housing market, like, starting oV firmly within the social housing because, of course, the individual has to put up 50% sector because they are people who would otherwise and we are putting up 50% from public funds. That be on the social housing list. We provide the bridge is immediately a very high percentage of private whereby they can cross over from that, but just investment we are bringing into the housing market. because we provide the bridge I do not think that is any reason for accusing us of not being very firmly within the social housing sector to start with. Q99 Mr Beggs: What were the key findings to emerge from the two recently completed research projects on co-ownership, and were any weaknesses Q98 Mr Beggs: Given its small scale relative to the identified in the two research projects? Northern Ireland Housing Executive’s house sales Mr Crowe: There were no weaknesses identified. In scheme, can the co-ownership scheme have an terms of the University of Ulster study the key impact on the aVordability of housing in Northern finding was that, “Overall the scheme scores highly Ireland? against a range of user, property/location and Northern Ireland Affairs Committee: Evidence Ev 47

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson

financial indicators. Delivery performance is good for mainland policy. That does not mean that we are with an ability to match output to funding. blind to where we could utilise diVerent items in our Collectively these are all measures of value for weaponry to deliver urban and rural regeneration money and greater certainty in the level of grant within our housing remit, but we can only do that if would be highly beneficial”. Read across in terms of we get the proper funding. You can imagine in terms the basis of delivery outcomes, we were of trying to strategise for the next three to five years, demonstrating eYciency in the way we operate, in if we do not know what our funding is going to be we that public sector expenditure cumulatively has cannot deliver what we know we are able to deliver amounted to £246 million compared to private in terms of regenerating the economy, bringing sector expenditure of £316 million. That is a leverage balance into communities and providing the right indicator of one public pound to £1.28 from the housing solutions. private sector. The total investment, including initial funds, has amounted to £556 million or a leverage of Q101 Mr Bailey: To a certain extent you have £2.25 private sector to one pound of public money, V anticipated my question. Perhaps you would so we are proving highly e ective in the utilisation of elaborate a bit further on how a more stable funding the funds that we have been given. I could go regime would help you. through quite a few of the other recommendations Mr Crowe: Three years ago we got funding for but it comes down to the fact that we are delivering several hundred units. Last year we got funding for on all fronts, but we need to have sustained and 300 units. This year we ended up with funding for systematic funding on a proper basis that allows us V 200 units. That is a major change within a very short to utilise the benefits of the scheme more e ectively period of time. We know that over the past 26 years in both urban and rural regeneration. This is key to we have delivered for Northern Ireland PLC and we our discussion and the wider remit that this agency have put a lot of people into home ownership who, can perform in that in terms of Northern Ireland but for Co-Ownership, would not have been there. PLC, whenever you are impacting on the 18,000 Therefore, it is essential from a professional and households, whenever you are creating wealth by business perspective that we have systematic funding virtue of a scheme with these people, that wealth that is reviewable on a three-year basis, we have a dissipates throughout the local communities of these proper level of base line funding that meets the people that we are housing. That has to have major 26-year track record of what an average demand is benefits for sustainable communities and balanced of several hundred units, but we also receive funding and mixed tenure. That also fits in with PPS 12 and that allows us to work with other agencies, like the the Regional Development Strategy for 2025. We Housing Executive, housing associations, are actually doing that. We are actually the agents community agencies, and we are doing that on the for mixed tenure, we are the agents for mixing up ground. My management team—and we have got a incomes in areas by providing that bridge. The superb staV—are interfacing with many agencies on bottom line is that if we take away the doctor the the ground to assess demand and need so that we can patient is going to get sicker. That is why it is go in and deliver accordingly, but it makes it very important that we get the funding which is needed diYcult to back that up if we do not know what our for the economy here. funding is going to be. This year we received our Mr Butler: May I just add that we are not sitting funding at the start and we received £7.9 million, so back on our laurels in the sense that although the it was quite a reduction on the £12.9 million the year reports that you referred to have been quite before. We received part of that last March and we complimentary about our association, we are received £2.7 million a few weeks ago. It makes it nonetheless looking at other ways in which we can very diYcult to plan what your activity is going to be enhance our presence and perhaps work in whenever your funding is split and the financial year partnership with other housing bodies as the expert end is tomorrow. It makes it very diYcult to plan in co-ownership to try and help them to develop co- professionally, so for those three areas having a ownership in their fields as their agent because we proper system of finance allows me to operate have the structures in place that can manage the properly within the remit of the organisation and, rather complicated procedures of co-ownership. more important, get delivery on the ground.

Q100 Mr Beggs: Do you anticipate any further Q102 Mr Bailey: That is interesting. Given the changes to the Co-Ownership scheme likely to result assertion that Co-Ownership is a net contributor to from the findings of the research? the social housing budget, why do you think it is not Mr Crowe: The scheme has run very successfully for looked upon more favourably? 26 years. The Chartered Institute of Housing also Mr Crowe: It could be modesty. did a research project and in it said, “It delivers value Mr Butler: It is unfortunate that we have got the for all concerned . . . is professionally run with word “ownership” in our name. It really is a skilled and experienced staV; it has the confidence misnomer to a certain extent and it does mislead and support of lenders; purchasers like it as well: people. Also, we have been so busy over the 25 years satisfaction rates for Co-Ownership compare very in performing eVectively and doing our job on the favourably with those for other forms of low cost ground that perhaps we have to share a measure of home ownership”. We are a very progressive, open the blame that we have not suYciently devoted organisation. We have been delivering on all the ourselves to telling other people what we are doing recommendations that Baroness Dean was making and how we are doing it. I think there has been a Ev 48 Northern Ireland Affairs Committee: Evidence

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson certain amount of misunderstanding as to the investment going into health and education is that it purpose and function of Co-Ownership and how it will create hot spots, mis-spends, not a balanced plays such a vital role—a pivotal role, we would economy. That is why this organisation is part of an say—in the social housing programme. I think a lot overall process, an overall solution, albeit within the of people dismissed us initially as simply a method housing remit. That is why in terms of the funding it whereby we staircased people into ownership. Yes, does not make good economic sense to receive grant we do that, and we have to admit we do that, but you and then pay back more in the same year. have to look behind that and see where we are Mr Harris: Especially, Chairman, when the two starting from, not just where we have ended up. We million gap comes at a time in the year when it accept that we end up with co-ownership. That is our probably is of no use to central government anyway whole purpose. We are totally focused and targeted because they were rushing to get the matched on that. That is our aim. We have no other function. schemes completed by 31 March. We could have We want to see people staircase out as quickly as done priority schemes earlier if we had had those possible, but where are they coming from? They are funds made available, but that is government coming from the social housing list; otherwise they finance. You know more about that than I do. would be blocking the social housing list. It is a means to an end. We have only recently, over the last two years, started to try and put the image across of Q104 Mr Bailey: From the lay person’s point of view what we are actually doing and we have been much it would seem to me that a scheme that met both more eVective in putting across our image and certain social objectives and generated a profit and indeed we have been helped by these recent reports; could potentially generate greater profits in eVect they have done a lot to correct what may have been a would be very commendable financially because of slight misapprehension as to our function within the the potential for generating further profits. social housing programme. Perhaps that helps to Mr Butler: A lot of our profits are ploughed back answer your question. into the scheme. Ms Patterson: There does appear to be an urgency about how quickly the profits are received and the Q103 Mr Bailey: Yes, except that I am a little bit puzzled. You said you have done more to get it priority is very much how much money will come in across and yet from what you said you have just had this year and how much will come in next year as your grant considerably reduced. That seems to be opposed to thinking of the longer term value of how contradictory. £2.9 million this year will generate receipts of ten million over five years. That seems to be an issue we Mr Butler: There is a time lag. Y Mr Crowe: I sit here before you as a professional have di culty explaining. banker with 19 years’ experience and I am still trying Mr Harris: Perhaps it is also worth stating that a to work out why it is called a grant when we have scheme is being proposed for key workers in hot received £7.9 million and in this same year we are spots in any event and it looks very like ours. It has paying probably £10 million back. That to my mind been picked up, I think, somewhere else. is not a proper and professional use of funds. We are delivering on all fronts and we certainly have the Q105 Mr Bailey: Could I inject a note of caution or support of the Department for Social Development. circumspection into the proceedings? What would Our strategic document fits in with the objectives of happen if there were to be a recession in the housing the DSD because we are there to help support market in Northern Ireland? community regeneration, build in mixed incomes, Mr Crowe: We are diVerent from the mainland in mixed tenure into communities and that fits in with that we never got the massive booms that occurred the Regional Development Strategy for 2025 and in the eighties and nineties in housing prices, but we PPS 12. Whenever we are delivering on all these V fronts, whenever mainstream housing policy is now still have an a ordability issue. With the peace there all about mixed tenure, stability of communities, etc, has been an economic benefit, there is no doubt, and it does not make sense for this funding situation to we are thankful for that. If there were a recession we V continue, particularly when we are trying our best to are probably talking about a ordability gaps. deliver on all fronts. I do not think it is the particular Whether you are in a buoyant market or whether fault of anybody. Budgets are tight right across the you are in a recessionary market you will always get board, but now, if we see all the funding that is going that aVordability gap in terms of house price into health and education and road, which is inflation and income inflation. You find that it tends absolutely right, the debate for funding becomes to pretty much level out in a recessionary market or academic because if we do not have people having in a buoyant market. We have not had the booms so the right amount of housing to live near their place it is unlikely that we will get that severe impact from of work we are creating a very disjointed solution. a recession. However, there is still the aVordability This is something that the Deputy Prime Minister gap. There is still an average income in Northern has latched on to with the £690 million of Key Ireland economy of £22,308 and an average house Workers’ Initiative. Over the last 26 years we have price of £106,000. That does not reflect the average helped a lot of key workers because they have not house price on the mainland where it is obviously a had the input to get the right home near to their lot higher but we look after people who are on two- places of work. What will happen if we do not have thirds of that income, so it is unlikely that we will the necessary funding and we have all this have that recessionary impact but it does not take Northern Ireland Affairs Committee: Evidence Ev 49

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson away the need to have a bridging agency that will at the property in good repair rather than letting it least help to promote people from lower margins deteriorate. We work very proactively with them, into home ownership. and in a minority of cases if something does occur in Mr Butler: And it is interesting to look at table 2 in the property that we feel really needs to be taken care the submission, that buying with Co-Ownership the of and the person involved does not have the weekly average household income is £317 whereas financial resources to deal with it, we come to for people buying with a mortgage it is £620, so we arrangements with them in terms of making loans are targeting the low income families. available which are repayable on sale to make sure that the condition is maintained. Q106 Mr Bailey: So in eVect a general recession and Mr Harris: With new build houses the builders are a housing recession are likely to go hand in hand and people who will be members of the National that aVordability gap would still exist even if prices Federation of House Builders, so they will all be did not rise? That is a fair summary of what you certified houses that we are purchasing. are saying? Ms Patterson: We are also working with the EAGA Mr Butler: Yes. Partnership here in Northern Ireland which is the agency for the Warm Homes Scheme. All our staV who visit properties have been trained by them in Q107 Chairman: You will have heard my comments terms of assessing eligibility and recommending that to the Federation of Housing Associations about the scheme and encouraging uptake and we are about to quality standard of housing that is being delivered undertake an advice exercise for all our stock so that and also the need to promote sustainable and eco- they are aware of that, again to encourage take-up friendly developments. How is Co-Ownership on this. ensuring that those properties that are part of your Mr Crowe: You can see that there is a very proactive responsibility are of a decent standard and are management scenario within the agency and this conforming to the most up to date eco-friendly allows us to keep tight control with our leaseholders. standards? We have a stock on average of 4,500 households and Ms Patterson: In relation to our scheme, because we we go to at least a thousand each year. This is a are purchasing property on the open market as continuing communication cycle which keeps our opposed to specifying building, to some extent we householders very informed at all times about have an important role in determining what an staircasing and any problems with the situation of adequate standard of property is for purchasing in payment. The condition of the stock is also the scheme and in doing that we consider that we are continually monitored. That is a very close proactive not only safeguarding the public funds invested in it situation which probably accounts for the fact that but also what meets the needs in the short to medium our repossession rate is 0.2% whereas the term of the people who are purchasing the property, repossession rate on the mainland is about 7.8%, so so we have a bespoke valuation system which would again that proactive stand is very eYcient, eVective, be a more developed version of the RICS Home value for money and, more importantly, it keeps our Buyer’s Report, that intermediate level, not a full householders in good space. structural survey but a detailed valuation of the Ms Patterson: We have a very clear time line for condition of the property. From that, which we people coming through the scheme from people developed for our own needs over time, we require making inquiries to people applying to people who the vendors to make good the property to an wish to staircase. At every stage we have a named appropriate standard. That is very important individual who is expert in that area and will deal because we are so active in the existing property with individual queries on a personal basis. We very market. Eighty five per cent of the properties we buy much believe in the whole concept of contact and are older and are more likely to be terraced than you advice. would expect in the first time buyer market because we are working very much on the margins. What we stipulate is that not only are those properties Q108 Mr McGrady: We have heard some comments refurbished before we purchase so that all the basic this afternoon about the eVect of the current core areas, such as the structural condition of the planning procedures and systems and how they property, the windows, the doors, the roof, the allegedly adversely aVect new build. Does it have electrics, damp-proofing are all rectified, but people any impact upon your particular operation? In can move into the property, people who are without answering that perhaps you would take on board the savings, without the cash to do work on the impact of PPS 12 which we have already mentioned. property. They are in a property that they can live in Would that be helpful or disadvantageous to you? for a few years without substantial expenditure. How will it impact upon your work, do you think? Thereafter we monitor our properties. We have Mr Crowe: In terms of new build, obviously the mentioned that we visit about a quarter of the stock, quality of housing stock benefits the public purse 1,000 houses, every year. We carry out external and it benefits our participants because they get a surveys. We have commissioned surveys on stock. good quality house to move into. Because of the way Our stock is well maintained. We go down to the the market has gone they are first time buyers. It is stage of cracks in the driveway. Everything is important that the perception is that first time considered, not just major issues. We help people buyers are not necessarily trainee accountants or who have suVered a change in circumstances trainee barristers. We are talking about people with through financial diYculties to access grants to keep very average incomes of £13,500. If the developers Ev 50 Northern Ireland Affairs Committee: Evidence

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson have been following the market and developers have aVordability, rather than having a fixed quota or a been building houses that are outside our valuation set number of units we are looking within each area limits we are restricted in terms of what we can go to where we are actively involved in partnerships in by the Department. £102,000 is the uppermost limit terms of talking to the people there, talking to the we can purchase a house at through Co-Ownership community groups and to local housing associations and there is a limit of £90,000 in most council areas within the area, to private developers who are across Northern Ireland. That in itself limits our interested in taking on the sites, and we are assessing ability to go into certain hot spot areas where prices specific need and demand in that area which have exceeded our valuation limits, particularly for potentially might include some form of tweak to our semi-detached three-bedroomed properties, the type product to make sure that the right sort of aVordable of property that would be ideal as new build for housing could be there in terms of the right volume families. I live in a coastal town where a survey was at the right time and that would be very much part recently completed that showed that there were only of PPS 12. 11 streets that had permanent residents. It is Mr Crowe: We have the operational eVectiveness symptomatic of tourist locations where you get a lot and capability to deliver. Every year in terms of the of second home development and it means that housing grant we receive we are paying it back plus families cannot aVord to live there because they have in the same year. That indicates our ability to deliver been priced out of the market. We cannot go in there what we are capable of and that is essential in terms to help because we are priced out of the market too of what we are talking about. Let us take a practical because our valuation limit is set by the department example of a coastal area where the Rural Housing at £102,000. It is not only coastal areas. There are Association wanted to put some houses for families other hot spot areas, both rural and urban, south but the price of land is such that when they add their Belfast, for example, where prices are going over building costs into it they cannot possibly come £200,000, so we are limited. I have had this under the £102,000 valuation limit, so we are priced discussion with the Department for Social out of there and yet those are the very people that the Development and they have intimated that where we agency could help. have entered into partnership with another housing Mr Harris: On the other issue that you were association to develop with the Housing Executive a speaking about, Mr McGrady, the planning side, we bona fide project they will look at giving us are developing links with local associations on rural discretion to go in there, but there is no doubt that surveys at present and very much the same thing is the valuation limits, particularly with the prevailing happening. We are finding local community groups house prices, are curtailing our work as well as the who are very keen to have four, five or six houses shortage of funds. built to maintain the school or other facility and there is land available but no planning, so the situation is back to where you started. Q109 Mr McGrady: Do you see any argument for the planning policy to have a provision whereby there is land set aside for aVordable housing, Q110 Mr Hepburn: What early assessment have you particularly in the smaller hamlets and rural made of the Barker review? communities? Mr Crowe: It was very thick. It took a long time to Mr Crowe: I think it is absolutely essential. This is read. Obviously, it is concentrated on the supply one of the reasons why I called on Radio Ulster in issues that we have touched on. One of the most December for a homes task force basically for interesting things that came out of it was her call for delivery of programmes on the ground for Northern agencies to work more eVectively on the ground. Ireland, local solutions for local problems, if you One of her recommendations—and there were like. If we are involved right at the start, if the many—was in terms of (and this applied to the planners are involved with the other agencies, if we mainland) various regional housing organisations to have all the agencies integrating eVectively at the be amalgamated. This goes back to my previous start of any project then there is every hope that it point when I said that if you have a regional body will succeed on the ground. We have a lot of well- representing something you have a better chance of meaning people, a lot of super agencies, delivering focused delivery and outcomes, not just outputs. In where they can. The homes task force that I have terms of the supply issues that were coming out called for along with the Institute of Housing is a there, again we have the capability to deliver but if mechanism by which we can bring the relevant we do not have the funding we cannot do it. Because agencies together the way they do on the mainland we have a track record over the last 26 years, to put to deliver the action on the ground, not only it in some context, if you compare 18,000 households strategically but operationally. Therefore, in terms against a population of 1.6 million with the situation of making sure that land that is owned is priced on the mainland with a regional body then you can accordingly so that a housing association can come see where we are coming from on the importance of in and build quite competitively and therefore the having an organisation focused on shared price passed on to the customer is such that the ownership. In terms of the supply issues we feel as an customer is not priced out of the market. agency that we can aVect the supply if we have the Ms Patterson: In terms of making land available for requisite level of funds but not only in terms of the aVordable home ownership the demand may well average level of demand. I want to reiterate that. We vary quite substantially between areas so, to build on have an average level of demand for several hundred what we were saying before about assessing need and units and those are several hundred coming through Northern Ireland Affairs Committee: Evidence Ev 51

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson the scheme and several hundred going out of the Q112 Chairman: So you want a vast amount of scheme. That is our base level of demand. We have a money but clarity as well? wider remit. We strategically and operationally can Mr Crowe: We have delivered and proved that we aVect economic regeneration in urban and rural can deliver. We have done a lot of research projects areas by giving people on lower than average on this scheme. I stress that this scheme should be incomes the opportunity to go into those areas. This looked at in the wider national context because I comes back to what Barker was referring to in terms believe that Baroness Dean and the Home of mixed tenure. Whenever you bring mixed incomes Ownership Task Force report have made into communities you are dissipating wealth within recommendations that we have been carrying out for those communities. That has got to have major 26 years. It is a successful pilot and a practical benefits for the economy and this is where we see example of what can be delivered, so in looking at ourselves as a keystone of that strategic and the benefits for the various plans that the Deputy operational output. Prime Minister has for the north, for the south east, etc, this should be the keystone of the mainstream Q111 Chairman: Everything you have said so far has housing policy planning. been about the benefits of co-ownership. How can Mr Butler: And it is unique in that because of the we get aVordability to be taken seriously for structure it starts the leaseholder oV from the very inclusion in any public service agreement because at beginning with the attitude that this is his house. It the minute everybody focuses on units and output, is not his house; it is within the social housing sector, not aVordability? How can we change that round? but it starts him oV with the attitude that it is his Mr Crowe: This is where the aVordability index house and he looks after it. He is responsible for the would probably play its part. The Housing repairs to it, so it is a home. It is a philosophical Executive has referred to the aVordability index and approach that really is diVerent from the ordinary that is probably as eYcient a measure as any that form of social housing. It is a unique form of social exists at this moment in time to show where you can housing forming this bridge. target your resources on a district or regional basis. If you have an aVordability index for your Q113 Reverend Smyth: You have mentioned some of constituency it makes it easier to say, “We need to the diYculties but I want to raise another one. How put some resources into housing there to help people where the average house price is this, inflation is this, does the Co-Ownership scheme contribute to one of but their income levels are that” and if you have an the policies that the government have, that is, index that is telling you that you can target funds if targeting social need, promoting equality of you have a Co-Ownership-type agency to go and get opportunity and developing sustainable people into homes. It is as simple as that. We are communities? working very closely with a range of agencies. The Mr Crowe: In terms of multiple disadvantage and Housing Executive is our strategic parent. We are social exclusion we are utilising new technology, a working with the Federation of Housing GIS system, to collate all the financial and social Associations, etc. We can deliver on the ground—I information that we have got on our database so keep coming back to the same chestnut. We have all that we can target what monies we have into those the weapons but we do not have the bullets to fire. areas that are most deprived. Housing is vital in We are not going to make those impacts on social neighbourhood renewal and our activity, as you housing without them. That is what it comes down know, is province-wide, but we prioritise the worst to. 10% of urban wards and we are looking on both an Mr Harris: We work with units and costs as well. urban and a rural basis at working with the agencies Mr Butler: The stop-go financial policy that we have in a working community and housing agencies on to operate under is really not conducive to long term the ground to ensure that we are there in the most planning. deprived areas, for example, Donegall Pass. There Mr Crowe: In a professional business practice if you are diVerent issues here. There are racial issues, for are making a strategic document for three years you example, and one of our key management team is normally know what you are going to be dealing interfacing here and is on the community committee with. We are a little bit in the dark in that we are told at ground level to get ourselves mentioned in the that we may get funding or we may not, we may get it various meetings and discussion groups to try to now, we may not get it until later on. I am not talking bring shared ownership principles to those areas. We about coping. I am talking about a professional have streamlined our operation to ensure that the operation, which we are, but we need to have a funds we do have are being targeted to those areas proper funding support mechanism to allow us to that suVer the worst deprivation. get on with what we have been doing for 26 years. Mr Butler: We are not asking for a vast sum of money. It is just that we need to know in advance Q114 Reverend Smyth: You say you consider the where we are rather than this up-down, down-up price of housing and the rising prices in that whole situation. area. Would those that we think need help in Mr Crowe: I am asking for a vast amount of money. targeting social need be coming in under that at all? Mr Butler: I know you are! I know that you said you are trying to share Mr Crowe: I am asking for that pot of gold you were ownership but in those areas in particular do you referring to earlier. find a good opening? Ev 52 Northern Ireland Affairs Committee: Evidence

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson

Mr Crowe: We are finding very positive feedback neighbourhood statistics and the Valuation and already on the ground in these particular areas. It Lands Agency which is developing community might take some time for the planning and for all the boundaries for property prices. These sorts of things agencies to get together to agree to kick start the have not been done before in Northern Ireland. The programme but we are certainly making sure that we income indicators in Northern Ireland do not relate are there at the very start. The average house price to small areas. That is why we are using our own that we are helping is £70,000, which is two-thirds of research and our own information. We will model the average house price in Northern Ireland, so we the eVect we should have in an area and we will be are already working on those types of level. What we accountable afterwards for the eVect that we did are trying to do is gear that up even more and, again, have providing we had the funding to do the work in if we have the funding we can really reinforce the the first place. delivery on the ground in terms of management time Mr Butler: It must be remembered also that, unlike and energy. It makes it very diYcult to talk to these many other situations which are a burden on the people when you know you can deliver but you do public purse, in practice the grant in our case is only not know whether you are going to have the funds to a temporary loan because on the average procedures do it. the loan is staircased out within seven years, so the government gets the whole of its funding from that Q115 Reverend Smyth: So, unlike the others who are particular property back in seven years. It is pretty talking about bringing in extra funding from good from the public purse point of view, if I may outside, you are relying more on government say so. funding to help, or are you seeking to get it from Ms Patterson: If I could refer you to figure 1, the other lenders? dark area is the proportion of government funds Mr Crowe: No. Do not forget that we get 50% put injected which, as you can see, is hovering between in by the private individual, we are supporting those 20% and 30% of the total cost, so when we talk about people that are not totally reliant on subsidy from 50/50 the remaining portion of the 50% of public the government, so we are helping the public funds is the recycled surpluses from these properties, exchequer in that respect. We are promoting the so it is not direct funding; it is a very small public concept of mixed tenure and mixing up the incomes sector investment but a crucial one to enable that to by being there in these areas to make progressive continue. changes. If we have the funds we can gear that up even more whereby in the worst areas we can be in Q117 Reverend Smyth: I know we can define social there at the start and commit funds. Surely that has need in diVerent ways but, just as we discovered in to be from the public sector purse, particularly as certain parts of Belfast, fathers or mothers from everything we make out of the scheme goes straight rural areas have been purchasing small properties back into the scheme. All the staircasing receipts, for financial benefit when their children are at apart from the repayment of social housing grant, go university. How far are you finding that a lot of back into providing further funds to support people people who are going into Co-Ownership homes are who are coming into the scheme. If we are given that relying perhaps upon their parents giving them the opportunity and the right level of funding then we finance earlier to help them rise up the property certainly can progress in the worst areas of market? I am thinking of trying to target social need deprivation. and I do not think the folk I am thinking of are necessarily in that category. Q116 Reverend Smyth: How is the eVectiveness of Ms Patterson: Normally people who are coming the scheme monitored in relation to targeting through the scheme would be from a background social needs? where parents would not tend to have that sort of Ms Patterson: In relation to the DSD objectives money anyway to give them. When we assess anyone under targeting social need there is only one who comes through Co-Ownership, Alan has specifically for that and that relates to the number of already mentioned the interviewing process. Before units. We are third on the list after the new build that we have a formal assessment of those people development programme of 1,500 units and 75 units and included in that is verification of income and for homeless occupation with last year 300 units for employment. There is a very strong financial element co-ownership. The year before it was 600 and before in all this, so these people are assessed as unable to that it was higher. This year it is 200. That is not a aVord to buy that property without our assistance. target in the sense that has any relation to need. That We are talking about entry level properties. It is is purely the number of properties that the something that we cannot take any further in terms Department will be able to fund with the funds they of should their parents later have money to give have available for us. In eVect it is not monitored. them. Three years ago we carried out a study of Our view is that the other areas within the social people coming through the scheme and as part of need categories—urban regeneration and renewal, that we looked at people who staircased to see why the whole social structure development—are not the staircasing had happened: had something monitored externally and they should be. We are happened to their circumstances to enable them to developing our own information base, using the do that? Had they found a partner and they could information that is out there externally, particularly aVord to staircase or had they come into some from the census from the Northern Ireland Statistics money? What we found was that by and large that and Research Agency which is developing was not the case. By and large what was happening Northern Ireland Affairs Committee: Evidence Ev 53

29 March 2004 Mr Alan Crowe, Mr Brian Harris, Mr Maurice Butler and Ms Lynn Patterson was that these people had no savings, we had put people want to live. There is a shortage of land in them into a property, that property had appreciated west Belfast and there is a surfeit of land in north in value and they had an equity stake, they had a Belfast and there is a political boundary that people track record when they left and they were able to do not want to cross by choice and that is reflected borrow against that. It was because of the scheme in the points system on the Housing Executive that they were able to staircase. waiting list. The waiting list does not apply to us. Mr Butler: But they do have to be able to get a People come to us to purchase a home in an area of mortgage so, in the case that you are raising, if they their choice. have not got sustainable income to justify a Mr Butler: It is a one-house situation. mortgage for the 50% share of the property then of Mr Harris: It does not matter to us whether they are course they would not come into the scheme and a Catholic, Protestant or east Belfast or west Belfast. building society would not accept parental We are lucky in that respect. We are out of that contributions as a sustainable form of income to terrible stigmatic situation that other people have justify a mortgage. While we may not be able to give got themselves into in Northern Ireland. a definite answer to your question, I think it would Mr Butler: Our only concern is low income. We are be fair to say in all the circumstances that it would not going to help people who can aVord their own be highly unlikely that anybody coming into our house. We only help people who cannot aVord a scheme would be able to rely on parental support. house and therefore they come into this starting They have to stand on their own feet. What we are point, social housing, and eventually, with us doing is helping people in social need on low incomes injecting the right attitude, they staircase towards to get into aVordable social housing. full home ownership within a defined period of Ms Patterson: It is a good question to ask and it is years. something that we are very keen to explore further because it will help us to predict staircasing levels Q119 Chairman: Do you collect data in respect of and cash flow, if you like, of the scheme over the any proportion of the 18,000 that you are years. There is ongoing research this year which is supporting? being funded by the Housing Executive. Ms Patterson: We could attribute data historically but only in the last three years have we been collecting that data for people in the scheme in Q118 Reverend Smyth: You heard the discussions preparation for our Section 75 obligations, and that earlier about the various areas: sometimes there are is showing a wide distribution because the house Catholic housing problems, sometimes Protestant buying process in itself is not slanted towards one housing problems. How does the Co-Ownership community or another and the fact that people can scheme accommodate what has been referred to as choose where they live through the scheme gets over distinct Protestant and Catholic housing need in some of the supply side issues in certain geographical Northern Ireland? locations. When we talk about becoming more Mr Crowe: My personal viewpoint is that involved in certain targeted areas where there is aVordability is no recogniser of religion. We do not more deprivation and social need we are already discriminate in terms of eligibility for people coming involved in those areas on an ad hoc basis, pepper- on to the scheme by nature of their religion. potting, dealing with the demand with people AVordability problems are right across the board. coming to us. We are already housing people, Therefore, when people come to us we are looking at particularly in north Belfast. It is an area where we social need rather than what the religious situation are very active in housing but yet we do not form currently is. Where we feel we can help is that if we part of the North Belfast Housing Strategy. Those are integrated more fully with mainstream housing are the issues that we are trying to change to join policy at the start and if there is a need identified by these things up, so that demand is dealt with the Strategic Housing Executive in certain areas holistically. where there needs to be direct action taken, then, Chairman: The committee is content. Thank you because we are a very flexible organisation, we can very much for your time. If there are issues that you move in support of those objectives if we are given feel have not been raised or you want to supplement the funds to do so. the evidence that you have already given to us we Mr Harris: The Catholic/Protestant housing issue is would welcome that, but on behalf of the committee more an issue of waiting lists and the Housing can I thank you for the time you have spent with us Executive, I would suggest. It is a supply and and the clarity of your answers. It will be of great demand situation, the choice of location where assistance to the committee. Ev 54 Northern Ireland Affairs Committee: Evidence

Tuesday 30 March 2004

Members present:

Mr Tony Clarke, in the Chair

Mr Adrian Bailey Mr Eddie McGrady Mr Stephen Hepburn The Reverend Martin Smyth

Memorandum submitted by the Department for Social Development

1. Introduction 1.1 The Committee has invited written submissions on the eVectiveness of current housing provision in Northern Ireland with particular emphasis on social housing. 1.2 The background to, and the way in which the social housing programme is constructed and delivered in Northern Ireland, is diVerent in a number of respects from any other part of the United Kingdom. It is important therefore to provide a context to the Department’s response and accordingly this submission: — explains the diVerences between Northern Ireland and Great Britain; — identifies the roles, responsibilities and organisation of the Department for Social Development and other key housing players; and — highlights key policy areas relevant to housing. The Department’s comments on the specific areas to be examined by the Committee are set out in the attached annexes.

2. General Context

Demography and geography 2.1 The size and demographics of Northern Ireland are especially relevant to the delivery of housing related services. The region’s population is growing at twice the rate of the UK, making Northern Ireland one of the fastest growing areas in Europe. Projections suggest that continued growth will ensure that the population will increase from 1.685 million to 1.835 million by 2025. This is more likely to be an under- estimate than an over-estimate, in light of possible consequences of EU enlargement in May 2004. 2.2 The relative youth of the population supports estimates that over 160,000 new households will be formed by 2015, mostly comprising one or two persons. The size of Northern Ireland has understandably influenced the form and direction of housing policy. The appointment of the Northern Ireland Housing Executive (NIHE) as the single regional strategic housing authority for Northern Ireland in 1972 has facilitated the development of a holistic approach to housing. Within Northern Ireland there are a number of sub-regions, for example the Belfast Metropolitan Area and the Rural West, where the natural geographical features mould the settlement pattern, which tends to be focused on a main town or cluster of towns. A major part of the population is located in the Belfast Metropolitan Area (600,000); of the remainder, some live in the city of Derry (approximately 90,000) and Craigavon (nearly 60,000), but many live in towns of less than 50,000 inhabitants or in rural areas where the relative absence of villages and the dispersal of properties gives an impression of a “peopled countryside” in lowland areas. 2.3 Recent analysis of the 2001 Census by the OYce for National Statistics (ONS) indicates that broad regional comparisons across devolved administrations at territorial level are not particularly helpful. Northern Ireland could more usefully be compared to a specific region within Great Britain, such as the North East of England. This is based on the nature of sub-regional variations within Northern Ireland and on the assumption that the North East of England, with an ageing industrial centre (Newcastle), and the presence of deeply rural communities (Northumberland), represents a more appropriate comparator to Northern Ireland’s size and conditions. Even so, ONS have indicated that for much of the Province there is no appropriate comparator—whilst the East of the Province has similarities to Great Britain, the area to the West, classified by the ONS as “Northern Ireland Countryside”, is distinct and diVerent from every other region in the UK. 2.4 Providing housing in both urban and rural areas presents challenges which require the development of housing policies sensitive to the specific needs of diVering client groups. These diverse needs require the Department and the NIHE to balance the range of housing related services, to ensure that social need is eVectively targeted and addressed. Commonly in Great Britain the distinct needs and priorities of the communities addressed by a single Local Authority will be either urban or rural, and this enables responses Northern Ireland Affairs Committee: Evidence Ev 55

to be developed that suit the particular catchment area. In Northern Ireland any policy development and implementation must take cognisance of both the urban and rural contexts within which the policy will operate. Community divisions 2.5 The impact of the inter-communal conflict on the delivery of housing is well documented from the eVects of adopting a “colour-blind” approach to housing policy (Bollens, 1999) to the development of more complex analysis that makes connections between race, identity and politics. (Murtagh, 2001) Obvious parallels exist between the impact of sectarianism in the delivery of housing related services in Northern Ireland, and Great Britain’s experience of addressing issues concerned with ethnicity and racism. Northern Ireland diVers from the rest of the United Kingdom as there has been little migration of ethnic minorities into the region. The Department recognises that the provision of services to ethnic minorities is likely to become increasingly relevant as Northern Ireland’s community diversifies and is progressing work in this area through the promoting social inclusion agenda. 2.6 The division of the community in Northern Ireland along religious and political allegiances does not exist to the same degree anywhere else in the UK or in the Republic of Ireland—it is unique. A consistent manifestation of the conflict has been residential segregation; consequently housing has continuously been at the centre of eVorts to ameliorate relations within and between communities. Whilst there has been marked improvement in the housing provision in Northern Ireland creating a sound basis from which individuals and communities can actively participate in social, economic, political and cultural life, diYculties persist. Housing has become more segregated over the last 20 years; more than 70% of NIHE estates are 90% Protestant or 90% Roman Catholic. (OFMDFM, 2003) 2.7 The OYce of the First Minister and Deputy First Minister’s (OFMDFM) recent consultation paper on improving relations in Northern Ireland “A Shared Future” highlighted other diYcult behavioural patterns which endure; violence at inter-faces between the communities continues to aVect lives, property, businesses and the delivery of public services. There is evidence that in some inter-face areas divisions are also emerging within the local communities. There has been little change in the extent of inter-community friendship patterns and although levels of tolerance and respect for diversity within each community appeared to have improved there is consensus that they have decreased recently. The impact on housing provision is stark. Surplus capacity in one area cannot easily be used to relieve need in another, if this would involve the movement of people from one communal territory to another. Territory “belonging” to one community cannot easily be used for the building of housing intended for occupation by members of the other community. Social need 2.8 Research conducted by OFMDFM into New Targeting Social Need and poverty in Northern Ireland indicated that the risk of poverty is greater in Northern Ireland compared to Great Britain. A number of indicators support this assertion: — The proportion of working-age adults in receipt of a key or means-tested benefit is higher in NI than in GB (for both men and women).

Table 1

WORKING-AGE ADULTS IN RECEIPT OF A KEY OR MEANS-TESTED BENEFIT

NI GB Men 6.0% 4.2% Women 2.2% 1.6% Source: DETI, January 2004

— The economic activity rate for women in NI is notably lower than in GB, and the rate for men in NI is somewhat lower.

Table 2

ECONOMIC ACTIVITY RATE

NI GB Men 80.6% 84.0% Women 63.5% 73.5% Source: DETI, January 2004 Ev 56 Northern Ireland Affairs Committee: Evidence

— The unemployment rate for men in NI in Autumn 2003 was much higher than that for GB (the lower unemployment rate for women in part reflects their much lower economic activity levels, since those unable to find employment may retire into economic inactivity).

Table 3

UNEMPLOYMENT RATE

NI GB Men 8.1% 5.3% Women 3.4% 4.5% Source: DETI, January 2004 — Unemployment figures show that more people in NI are unemployed for longer periods of time:

Table 4

UNEMPLOYMENT

Unemployed (duration) NI (%) GB (%) Women '1year 84.2 88.5 Women(1year'3 years 12.4 9.7 Women( 3years 3.4 1.8 Men'1year 75 83.2 Men (1year,'3 years 20 13.8 Men(3 years 5.1 3 Source: DETI, January 2004 — Fewer people in Northern Ireland are in employment than elsewhere in the UK, and their earnings are well below the UK average, somewhat below the average for the North East, though there are some regional diVerences—North East has higher manufacturing wages, lower financial sector wages—reflecting diVerences in the regional economies. This means that the ability of NI workers to aVord house purchase is the lowest in the UK, resulting in pressures on the social housing sector.

Table 5

MALE AVERAGE EARNINGS (£ PER WEEK) APRIL 2001

Whole Economy Manufacturing Distribution, hotels Finance and business & catering UK 488.2 (100%) 461.5 (100%) 411.3 (100%) 631.2 (100%) North East 418.6 (86%) 416.1 (91%) 339.9 (83%) 473.6 (75%) Northern Ireland 409.2 (84%) 381.2 (83%) 338.9 (82%) 498.2 (79%) Source: ONS, 2001 — The overall income of NI households in social housing is about 80% of that for UK households in general, a similar ratio to that for NI households owning their house on mortgage. Although the expenditure of NI households in social housing on housing is less than half of that of similar UK households (the impact of Housing Benefit is significant here—it counts as both income and expenditure and does not pass directly through the tenant’s hands), their expenditure on housing plus fuel is about 70% of the UK households. Northern Ireland households are poorer than those of the UK, but their expenditure is in some respects considerably higher. Fuel poverty is a considerable issue. Northern Ireland Affairs Committee: Evidence Ev 57

Table 6

£ per week Social Housing Owned on mortgage Owned outright Household Income NI UK NI UK NI UK 1999–2000 181 221 523 689 380 408 2000–01 200 235 520 706 379 422 2001–02 208 288 620 765 385 441 Housing Expenditure 1999–2000 13.6 32.0 55.6 83.8 17.6 30.2 2000–01 17.1 35.5 58.6 96.3 18.0 32.3 2001–02 13.2 70.1 20.2 Fuel Expenditure 1999–2000 13.3 9.6 16.0 12.6 16.1 11.7 2000–01 13.3 9.6 18.3 13.0 20.1 12.8 2001–02 15.7 19.9 18.3 NB: UK 01/02 are missing and because of the change in the way that mortgages are handled Source: DSD, 2003 2.9 The tables demonstrate that Northern Ireland does not enjoy the same level of economic prosperity as other parts of the United Kingdom. The headline figures show that more people are dependent upon state benefits in Northern Ireland, and that rates of economic activity are lower than in GB. The female unemployment rate in Northern Ireland is 3.4% (1.1% lower than GB) but the male level is 2.8% higher than in GB. However, there are fewer short-term unemployed people in Northern Ireland because those people who become unemployed in Northern Ireland tend to remain out of work for longer. People who are in work, whilst considerably better oV than those dependent on benefits, generally suVer lower wage rates than in GB. Whilst the indicators provide only a rudimentary picture of Northern Ireland’s economic position in relation to GB they do serve to illustrate that in a number of key areas Northern Ireland can still be considered disadvantaged in comparison to the UK.

3. Policy Context 3.1 The Department for Social Development was established by the Departments (NI) Order 1999. The functions and various programmes within the Department are wide-ranging; they interlock in such a way as to advance and support the social development of the people of Northern Ireland. 3.2 The Department for Social Development’s mission statement is, “Together, tackling disadvantage, building communities”. To achieve this a number of strategic objectives have been identified: — To provide a fair system of financial help to those in need and to ensure that parents who live apart maintain their children; encouraging parental responsibility and improving incentives to work and save. — To promote measurable improvements to housing in Northern Ireland. — Tackling disadvantage amongst individuals, communities and neighbourhoods, with particular emphasis on greatest need and encouraging, developing and supporting community development. 3.3 The Department, inter alia, administers the business of: — The development of housing policy and the legislative framework to support this policy. — Urban Regeneration, which includes a comprehensive approach to tackling social, economic and physical regeneration and redressing disadvantage in cities, towns and villages in Northern Ireland. The Department also oversees both the Northern Ireland Housing Executive (NIHE) and the Laganside Corporation, which are Non-Departmental Public Bodies, and the Rent Assessment Panel, which acts as a tribunal body. 3.4 The Assembly’s Executive Committee presented its Programme for Government to the Northern Ireland Assembly in 2001; Target 2.3.2 of the Programme set out the commitment to: “ensure that everyone has the opportunity to access decent, aVordable housing in the tenure of their choice.” The expressed aim of housing policies and programmes as detailed in the Programme for Government is to meet this target. Decent housing is relevant to New TSN and Promoting Social Inclusion policies through supporting the creation of a stable home environment, better health and better employment opportunities. The Programme commits the Department to work in partnership with the NIHE, Housing Associations and others in the voluntary sector, to improve the quality of accommodation generally and to increase the numbers of Ev 58 Northern Ireland Affairs Committee: Evidence

properties that meet special needs. Improvements in services to the homeless; traveller accommodation; energy eYciency in the social housing sector; and the number of households experiencing fuel poverty are also planned. 3.5 The DSD Corporate Plan 2003–06 has been developed taking account of the document “Building on Progress—Priorities and Plans for 2003–06”. This document builds on the work programme in the Programme for Government. The priorities identified in the Programme will be carried on by Direct Rule Ministers during suspension of the Northern Ireland Assembly as a basis for action over the coming years. These are: — growing as a community; — working for a Healthier people; — investing in Education and Skills; — securing a Competitive Economy; and — developing Relations on a North/South, East/West and international basis. 3.6 Most of the Department’s responsibilities come within the growing as a community priority. How the Department delivers its services is set out in the Public Service Agreement (PSA); published with Priorities and Plans. The PSA is further developed in the Service Delivery Agreement (SDA). The Department has also developed Reform Plans in six key areas. Three relate to the Welfare Reform and Modernisation Programme; two Housing reform initiatives are being taken forward and a long-term approach will be developed for Urban and Community Renewal.

4. Roles and Responsibilities 4.1 The Department for Social Development progresses housing strategies and programmes in partnership with the NIHE, registered Housing Associations and a range of stakeholders. The Department for Social Development and the NIHE work together within the parameters of: (a) Legislation. (b) Directives. (c) Dossier of Controls. (d) Framework Document. 4.2 The NIHE comprises a 10 member Board, appointed by the Department, including a Chairman and vice-Chairman, and is supported by a Chief Executive and around 3,000 staV. The NIHE, which is a Non- Departmental Public Body, is the sole assessor of social housing need in Northern Ireland while the Department sets, controls and monitors the programme to meet that need, which is delivered by Housing Associations. 4.3 Housing Associations are required to register with the Registrar of Credit Unions as an Industrial & Provident Society and then with the Department for Social Development before they can access government funding. In addition, before a submission for registration with the Department can be considered, a number of criteria must be demonstrated, for example, the ability to fulfil statutory requirements, to exercise suYcient control, to achieve managerial eYciency and promote equal opportunities. These are routinely monitored and punitive actions instigated if criteria are not strictly adhered to. The Department has issued the Housing Association Guide which details the standards across the range of issues that Housing Associations are compelled to adhere to including design and administrative requirements. The Director of Housing within the Department for Social Development periodically issues Circulars which the Housing Associations are obliged to follow. 4.4 In summary, the Department is responsible for the financial, policy and legislative programme relating to social housing matters and for monitoring the delivery of social housing services by the NIHE and registered Housing Associations. All housing activities are subject to the scrutiny of the Northern Ireland Audit OYce, as well as the Department’s Internal Audit. The NIHE, with registered Housing Associations, is responsible for the delivery of the social housing policies and programmes.

Table 7

DSD HOUSING BUDGET—2003–04 and 2004–05

2003–04 2004–05 Capital NIHE Expenditure (Improvements to Existing Stock, Land 142.5 102.5 Purchase & SPED*) Revenue NIHE Expenditure 417 415 Private Sector House Renovation Grants 41 43 Northern Ireland Affairs Committee: Evidence Ev 59

Housing Association Expenditure 83 77.7 NICHA** 8 5.3 Supporting People 48 52 Departmental Running Costs 2 2 Total 599 595 Grand Total 741.5 697.5 *Scheme for the Purchase of Evacuated Dwellings **Northern Ireland Co-ownership Housing Association 5. Linkages with Other Policy Areas

Regional Development 5.1 The Department for Regional Development’s (DRD) Regional Development Strategy—“Shaping Our Future”—takes a long-term perspective and sets out the strategic approach to the distribution and form of housing throughout Northern Ireland. The Strategy sets out the main drivers of change in Northern Ireland with the aim of ensuring that housing, and its critical relationships with employment, transport and the environment, are managed within the principles of sustainable development. 5.2 Under the provisions of the Strategic Planning (NI) Order 1999, DRD has responsibility for implementing the Strategy. Under the Planning (Amendment) (NI) Order 2003, the Department for Social Development and the Department of the Environment are required to ensure that any development plans are in general conformity with the Strategy. The Strategy discusses the management and distribution of housing growth in line with the Spatial Development Strategy which advocates development of the Belfast Metropolitan Area, the Northwest and main towns located on key and link transport corridors. 5.3 The Regional Development Strategy (RDS) identifies three major housing related themes: the management of housing need; support for urban renaissance and the achievement of balanced communities. The primary demographic factors aVecting change can be summarised as a rapidly growing and youthful population with an increased incidence of smaller households. The current regional growth rate is twice that of the UK rate, resulting in the projected need for up to 160,000 additional dwellings by 2015 and possibly up to 250,000 additional dwellings by 2025. 5.4 DRD also has a responsibility under the Strategic Planning (Northern Ireland) Order 1999 to prepare strategic planning policy to assist in the implementation of the RDS. This is being achieved through the preparation of a series of Planning Policy Statements (PPS), which dovetail with those prepared by the Department of the Environment (DOE). One of the most significant of these in relation to housing is PPS12 “Housing in Settlements”. This introduces the whole “Plan, Monitor and Manage” process to ensure the delivery of the right amount of housing of the right type in the correct location and at the right time. This involves the introduction of housing needs assessment, urban capacity studies and a phasing approach to development plans which are the main vehicle for the delivery of housing.

Planning 5.5 The linkages between housing and planning are further detailed in publications from the Department of the Environment such as The Planning Strategy for Rural Northern Ireland and various Planning Policy Statements (PPSs) that set out policies on land use and other planning matters and apply to the whole of Northern Ireland. PPSs are gradually replacing the policy provisions of the Rural Planning Strategy. Those of greatest relevance to housing include PPS 7 “Quality Residential Environments” (June 2001) and PPS 8 “Open Space, Sport and Recreation” (Feb 2004). Supplementary guidance which complements these PPSs can also be found in the Creating Places Design Guide (May 2000) and Development Control Advice Note 8 “Housing in Existing Urban Areas” (June 2002). Development plans prepared by the Department of the Environment provide the statutory land use framework within which regeneration takes place. Regeneration is the responsibility of the Department for Social Development.

Health and Social Services 5.6 The publication of the Investing for Health Strategy provides another example of significant interdepartmental working. Although the lead Department responsible for this strategy is the Department for Health Social Services and Public Safety (DHSSPS), all NI Departments were involved in the Strategy’s development and remain committed to its implementation through the Ministerial Group on Public Health. The Strategy recognises that good quality housing and associated services can contribute significantly to the general health of individuals and communities. Therefore, the contribution that DSD can make towards the achievement of the Strategy through the provision of social housing is substantial. Actions required to support those on low-incomes and in greatest need include: — Remedying unfitness in the social and private sector housing. — Assisting homeless people. Ev 60 Northern Ireland Affairs Committee: Evidence

— Increasing adaptations to existing houses to make them accessible to people with disabilities. — Providing more special needs housing for disabled people and other vulnerable groups. — Developing appropriate accommodation to meet the needs of Travellers. — Improving energy conservation and reducing fuel poverty. — Designing safety into housing provision. 5.7 Some of the themes identified in the Investing for Health Strategy appear in other cross-departmental initiatives. A recent example of interdepartmental activity to address a specific issue is the publication of a consultation paper on a Fuel Poverty Strategy. This required input from DHSSPS from the health side, the Department of Enterprise Trade and Investment (DETI) on energy matters and The Department of Finance and Personnel (DFP) on building regulations.

Community Relations 5.8 The Department and its Non-Departmental Public Bodies are required under the Northern Ireland Act (1998) to prepare Equality Schemes for ratification by the Equality Commission for Northern Ireland. Section 75 (2) also places a duty on public bodies to “have regard to the desirability of promoting good relations between persons of diVerent religious belief, political opinion or racial group”. The NIHE has also produced a Community Relations Strategy which details how the NIHE can support integration where it exists and facilitate further integration where there is a desire. The Department and the NIHE are required to prepare annual reports on their Equality Schemes to facilitate the Commission’s monitoring of the Department’s performance. A strategy for developing activity across Departments has been produced by the Community Relations Unit of the OFMDFM. This document sets out the policy aims, implications for action and how any action should be monitored and evaluated. 5.9 During 2003, the Community Relations Unit of the OFMDFM also published a consultation document on improving relations in Northern Ireland. Respondents urged Government to take action to reduce tension and conflict at interface areas and to support the development of integrated/shared communities where people wish to learn, live, work and play together. Government is currently considering the outcome of the consultation and will bring forward proposals later this year for a new cross- Departmental strategy and framework to promote better relations between and within communities in Northern Ireland.

Neighbourhood Renewal 5.10 Housing is also a central component of the Department’s Neighbourhood Renewal Strategy “People and Place” which details the role of diVerent Government departments and the role of the NIHE as a key strategic partner in the neighbourhood partnership structures. The Neighbourhood Renewal Strategy aims to target the most acute deprivation by focusing resources on areas where it is most intense. A long-term view is being taken and the strategy will commit to a 7–10 year planning and implementation time-scale so that sustainable renewal and stability can be achieved. It will take an integrated approach to solve the multi-dimensional nature of deprivation and Government departments and public agencies will be encouraged to place regeneration at the centre of their programmes of work. The strategy seeks to empower communities to drive forward regeneration of their areas and also to involve the private sector to encourage it to make a contribution to regeneration by investing in disadvantaged areas. The Neighbourhood Renewal Strategy also aims to address community division and tension which adds to the burden of deprivation suVered by many communities. A partnership approach both within and between communities and between Government agencies and deprived communities will be encouraged within the framework of “Partners for Change”, Government’s strategy for support of the voluntary sector.

Rurality 5.11 Housing, like other policy areas, is benefiting from innovative work being taken forward by OFMDFM to understand the specific and particular needs of rural communities. All policies during development are subject to an Integrated Impact Assessment during which the issue of rurality is examined in depth. The cross-cutting nature of the Department’s activities is demonstrated by past and current support for projects designed to address the sometimes very specific needs of rural communities. For example, the application of alternative forms of energy production and new methods for conserving energy in property types prevalent in rural areas is being taken forward by a cross-sectoral group with financial and professional support from DSD.

6. Recent Developments in Housing in Northern Ireland 6.1 A Review of the EVectiveness of the Housing Programme commissioned by DSD, OFMDFM, and DFP was conducted by consultants DTZ Pieda. The study, which was completed in 2002, was part of a comprehensive review of the need for and the eVectiveness of the use of public sector resources for housing in Northern Ireland. The terms of reference focused on the eVectiveness of the programme in meeting its Northern Ireland Affairs Committee: Evidence Ev 61

objectives, the continued relevance of those objectives, the analysis of the outputs and outcomes delivered and reporting on any obstacles to the achievement of the programme objectives. On the basis of studies conducted into NIHE Capital and current expenditure, grant aid to the improvement, repair and adaptation of privately owned houses as governed by the Housing (NI) Order 1992, grant aid to Housing Associations for the provision of social rented housing, and support to house purchase through the Co-ownership Housing Association the report concluded that, “Housing expenditure has been eVective in addressing need and has been commensurate with the levels of need.” (DTZ Pieda, 2002) 6.2 The DTZ Pieda report highlighted areas where further investigation would be beneficial and these have been the subjects of subsequent reviews. These reviews have either been completed or are with the Department for consideration: — the Net Costs of the Social Housing Programme; — the recent rise in unit costs of social housing provision; — long-term projections of housing need; and — the NIHE’s investment programme. 6.3 The Northern Ireland Assembly’s Social Development Committee Inquiry into Housing in Northern Ireland represented the first local, cross-party analysis of housing issues for decades. Following a presentation of the Housing Bill proposals by the Department to the Social Development Committee, and within the context of those proposals, the Committee decided to consult widely on a number of policy areas namely: — private sector renewal and proposal to move from a mandatory to a discretionary grants system; — houses in multiple occupation and the regulation of the private rented sector; — the right to buy for Housing Association tenants; — large scale voluntary transfer and the role of the NIHE; — anti-social behaviour; and — homelessness. Subsequently, the Committee decided to deal separately with, and report later on, Anti-Social Behaviour and Homelessness. 6.4 The provisions to be included in the Housing Bill were approved by the Assembly’s Executive Committee and published for consultation. For the most part respondents to the consultation exercise supported the proposals included in the Order. The Bill was introduced in the Assembly on 25 June 2002 and cleared its Second Stage on 3 July 2002. It was half way through its Committee Stage, which was being taken by the Assembly’s Social Development Committee, when the Assembly was suspended on 14 October 2002. 6.5 Following suspension, the legislation passed to Westminster and was enacted as the Housing (Northern Ireland) Order 2003 on 27 February 2003. This Order is the first Northern Ireland primary housing legislation since 1992. As such it is a large Order and it covers a wide range of issues. Its main provisions introduce a range of measures to deal with anti-social behaviour aVecting people living in social housing; provide a private sector housing grants regime; enable the NIHE to provide caravan sites for Irish Travellers; and make provision for a registration scheme for Houses in Multiple Occupation. The Order also deals with a variety of miscellaneous housing matters including the provision of statutory cover for repair and compensation schemes administered by the NIHE; the provision of a House Sales Scheme by Registered Housing Associations; and the updating of various other provisions. All of the provisions, except for the House Sales Scheme for Housing Associations, have been, or will be, brought in on a variety of dates between 1 June 2003 and 1 April 2004. 6.6 The Department continues to keep developments in Great Britain and the Republic of Ireland under review and further housing legislation is planned relating to the Private Rented Sector and to strengthen anti-social behaviour provisions.

7. Topical Housing Issues

Consultation on Anti-Social Behaviour Orders and proposed partnership between PSNI and NIHE 7.1 The Department has responded to a consultation document “Measures to tackle Anti-Social Behaviour in Northern Ireland” issued by the Northern Ireland OYce’s Criminal Justice Policy Branch. Anti-Social Behaviour Orders (ABSOs) were introduced in England under the Crime and Disorder Act 1998. ABSOs are a type of injunction designed to restrain individuals, including children, from behaviour which, while not necessarily criminal, causes alarm, distress or harassment to one or more people not in the same household as the individual causing it. In England, ABSOs are operated on a partnership basis by police forces and local authorities. The Department’s response: — welcomed ABSOs as an initiative that would help deal with anti-social behaviour; Ev 62 Northern Ireland Affairs Committee: Evidence

— expressed support for the development of a partnership between the Police Service for Northern Ireland and the Housing Executive (and, in due course registered Housing Associations) for the purpose of applying ABSOs, and — emphasised that District Councils should also be fully involved in any such partnership. Draft Fuel Poverty Strategy 7.2 Fuel poverty is the situation in which a home cannot be heated to an acceptable temperature for reasons of cost. The 2001 Northern Ireland House Condition Survey found that 203,000 households here (33%) suVer fuel poverty. Chief among the causes of this problem are low household income, high energy costs and poor energy eYciency. The UK Fuel Poverty Strategy (November 2001) committed the Department for Social Development to producing a separate strategy for Northern Ireland. DSD issued its consultation paper “Towards a Fuel Poverty Strategy for Northern Ireland” in October 2003, and the consultation period ended on 31 December. Consultation included participative events, managed by the fuel poverty charity National Energy Action, funded by DSD. 7.3 The consultation paper described the causes, eVects and extent of fuel poverty in Northern Ireland, sought to agree a definition of the problem, and discussed the ongoing work of a range of organisations that help to address it. The Department has proposed to tackle fuel poverty by leading a partnership of the relevant statutory agencies, private sector interests and voluntary/community sector groups. There was a broad welcome for this approach. The responses are now being analysed with a view to production of the final strategy by the end of March, the strategy will be published shortly afterwards.

Review of Private Rented Sector 7.4 The private rented sector plays a very important role in meeting the housing needs particularly in areas where there is a high demand for social housing and the sector now accounts for 7.6% of the total housing stock. 7.5 While it has the potential to complement the stock of social houses, there are widespread inconsistencies across the sector in terms of tenants’ rights, rent control and unfitness. In order to address these diYculties the Department for Social Development has carried out a review of the private rented sector legislation and the Housing Executive is developing a strategy for the sector, the overall aim being to ensure that the sector can play a meaningful role as a viable and aVordable alternative to social housing for those in need, whilst recognising the rapidly increasing costs of housing benefits to private sector tenants as shown by the following table:

Year Private % Housing % NI % Total % Rented Increase Association Increase Housing Change Change Sector (£m) Executive (£m) (£m) 1999–2000 83.9 23.4 206.4 313.7 2000–01 83.5 "0.4% 32.5 38.8% 202.0 "2.1% 318.0 1.4% 2001–02 90.9 8.9% 36.6 12.6% 199.6 "1.2% 327.1 2.9% 2002–03 110.1 21.1% 42.8 16.9% 199.1 "0.3% 352.0 7.6%

PSI Working Group on Homelessness 7.6 The Assembly’s Social Development Committee prepared a report on homelessness in 2002 that made a number of recommendations relevant to the work of the Department and the NIHE. The NIHE responded to the Committee’s report by publishing its Homelessness Strategy later that year. This set out recommendations which would form the basis of an implementation plan to be delivered over the next few years. The NIHE Strategy broadly reflects the current approach within Great Britain, ie homelessness strategies, cross-departmental and cross-sector working, a reduction in the use of bed and breakfast, and additional hostel type provision. 7.7 Within the context of Northern Ireland’s New Targeting Social Need initiative, homeless people were identified as a socially excluded group. In 2003, following the publication of the NIHE’s Homelessness Strategy, a Promoting Social Inclusion working group on homelessness was established. It is recognised that the underlying causes of homelessness are varied, and that prevention cannot be achieved by simply meeting housing need, so eVective delivery of health and social services, education, employment and training services, and welfare benefits to people who are at risk of homelessness is also required. 7.8 The group is tasked with developing an inter-departmental and cross-sectoral response to homelessness, with the aim of supporting government departments and other agencies in working together to ensure that the risk of homelessness is reduced and that the full range of support services is accessible to people experiencing homelessness. The group will produce a draft policy and strategy document for consultation in 2004, with a final report to Ministers by March 2005. Northern Ireland Affairs Committee: Evidence Ev 63

Management of the New Build Social Housing Programme 7.9 There are three key stakeholders in the delivery of the social housing programme: the Department, in terms of funding and scheme approval, the NIHE in the assessment of need and Housing Associations as providers of new build housing. Whilst these are the principal organisations involved, the programme is heavily dependent on a number of “outside” factors, for example, land availability, planning and other statutory approvals, building costs and funding. 7.10 The Department has not met its annual target for new build starts in recent years. The reasons for this are many and varied but, as often as not, centre around the management of a complex process in taking forward a new build programme from the start ie from site identification to when a contractor goes on site. The delivery of the new build programme is, and will remain, a high priority for the Department. Action has been taken to address many of the problems associated with the programme, as outlined in Annex 2. This is already paying dividends and will, in the future, bring greater security to the delivery of the programme. Extension of the House Sales Scheme to Housing Associations 7.11 A number of Housing Associations already operate a voluntary house sales scheme similar to the NIHE’s scheme. The Housing (Northern Ireland) Order 2003 enables the Department to make a scheme for Housing Associations. It is the Department’s intention to introduce a house sales scheme that will apply to all tenants of social housing. 7.12 Consideration is currently being given to the terms and conditions that should apply to such a scheme.

Foyers 7.13 Foyers, developed in France, were introduced in the UK in 1992 as a direct result of a joint initiative by the voluntary sector, business and Government. By 1997, 46 Foyers were operational. There are now over 100 with a further 150 under development. Each Foyer is a separate locally based project designed to meet the needs of disadvantaged young people and help them achieve personal and economic independence. Since their inception Foyers have demonstrated consistent success in enabling disadvantaged young people to achieve independence. 7.14 Within the Northern Ireland Foyer movement there are four operational Foyers located in Belfast (2), Londonderry and Lurgan. All four have success stories to tell and there is no doubt that the Foyers have been of considerable benefit in the fight against social exclusion, deprivation, and alienation.

Group Housing Schemes 7.15 Much of the disadvantage that Irish Travellers experience are related to their poor living conditions. It is recognised that the provision of good quality accommodation is the basis from which many of the problems such as ill health, unemployment and poor educational attainment can be tackled. A recently completed Traveller accommodation needs assessment indicated that a significant number wish to live in Group Housing schemes designed to cater for extended family groups and facilitate their specific cultural traditions. Four pilot group-housing schemes are in various stages of development and a 5-year programme of future schemes has been drawn up. The schemes require lower densities and the provision of additional facilities making them more costly than traditional housing.

8. Conclusion 8.1 Whilst there are certain similarities in the provision of social housing between Northern Ireland and Great Britain there are also unique features that set Northern Ireland apart. 8.2 Meeting the Government’s objective of ensuring that everyone has the opportunity to access decent, aVordable housing in the tenure of their choice is dependent on the interaction of a wide range of policies, practices and procedures by key housing stakeholders. 8.3 The successful delivery of a new build social housing programme to meet urgent housing need remains a high priority for the Department.

Annex 1

THE RISING DEMAND FOR SOCIAL HOUSING 1.1 The demand for social housing is influenced by the number of people in housing stress, the turnover in housing (re-lets) and the number of new build houses provided by Housing Associations. The Department funds the new build social housing programme which is delivered by means of a three-way partnership. The Northern Ireland Housing Executive (NIHE) is responsible, inter alia, for assessing housing need, using local waiting list information and by applying the Net Stock Model (NSM). It recommends a programme to the Department, the Department approves, issues and monitors the programme and the 38 registered Housing Associations are responsible for building and managing the new dwellings. Ev 64 Northern Ireland Affairs Committee: Evidence

1.2 Preliminary findings from the application of the NSM to demographic and housing data for 2001–11 indicated that an average of 1,400 units would be required annually; the Cambridge model (usually applied in England) estimated that a programme providing 1,500 units annually would be required to meet housing need. The research emphasised the importance of revisiting the models regularly, suggesting that no more than two years should elapse between reviews and the importance of ensuring that the models remain responsive to local information on need. This is particularly relevant in the context of the Regional Strategic Framework, which is forecasting considerable growth in the number of households over the coming years. 1.3 In 1998 a Common Waiting List was introduced for applicants for both NIHE and Housing Association general needs accommodation. In 2000 a new scheme was implemented which: — Makes almost all applicants and existing tenants, who wish to transfer, subject to a points based assessment. — Deals with health and social well-being in a comprehensive and sensitive manner. — Maintains a non-pointed list of applicants with “complex needs” who require more specialised accommodation and support services. — Introduced a new definition of urgent need on the basis of the points system, now classified as “Housing Stress”. 1.4 Since December 2000 the numbers of applicants in housing stress (ie with more than 30 points) has increased. This is attributable to four specific areas: (a) Single persons continue to increase their share of the waiting list. (b) Elderly demand as a share of waiting list is static, however in absolute terms the number of elderly applicants for social housing is increasing annually. (c) Geographic distribution is showing significant growth on the periphery of Belfast—Belfast itself is still the highest concentration of demand. (d) The increase in the number of “vulnerable” persons.

Table 8

TOTAL URGENT/HOUSING STRESS ON WAITING LIST Mar 99 Mar 00 Mar 01 Mar 02 Sept 02 Total urgent/housing stress 11,423 9,918 10,119 12,399 13,235 (55%) (42%) (43%) (50%) (49%) Total Waiting List 20,642 23,400 23,368 24,641 27,073 (100%) (100%) (100%) (100%) (100%) Source: NIHE, 2004 1.5 The increase in the list between 1999 and 2000 was the result of the amalgamation of the lists formerly held on a separate basis by NIHE and Housing Associations prior to the introduction of the Common Selection Scheme and Waiting List.

Table 9

THE COMMON WAITING LIST—HOUSEHOLD COMPOSITION 1993–2003

Mar 1993 Mar 1998 Mar 2003 Singles 10,000 (42%) 9,200 (41%) 11,700 (44%) Elderly 4,800 (21%) 4,900 (22%) 5,100 (19%) Others 8,800 (37%) 8,600 (37%) 9,900 (37%) Total 23,600 22,700 26,700 Source: NIHE, 2004 1.6 “In terms of composition, three household types dominate the waiting list: singles (44%), small families (26%) and elderly (19%). The proportion has changed little over the past three years, but there are signs that the proportion of singles is increasing while that of the other dominant groups is falling a little.” (Northern Ireland Housing Market Review and Perspectives 2004–07). Housing need in the social housing sector is principally met by relets, eg from 2001–03 relets to applicants for social housing averaged around 8,000 per annum. The NIHE have indicated that although the relets figure is increasing, the rise has not been suYcient to prevent rises in both the overall waiting list and the numbers of persons experiencing housing stress. In the two years preceding March 2003, 57% of the increase in the total number in housing stress was accounted for by singles; small families and elderly persons accounted for an additional 16% each of the overall increase in applicants experiencing housing stress. Northern Ireland Affairs Committee: Evidence Ev 65

Table 10

COMPOSITION OF THE WAITING LIST 2001–03

Mar 2001 Mar 2002 Mar 2003 Singles 41% 40% 44% Small Family 28% 26% 26% Small Adult 4% 5% 5% Large Family 5% 5% 5% Large Adult 1% 1% 1% Elderly 20% 20% 19% Total 22,000 (100%) 26,000 (100%) 26,700 (100%) Source: NIHE, 2004 1.7 In the six month period from the end of March to the end of September 2003 the demand for social housing continued to rise; at that time over 27,600 applicants were on the Common Waiting List, with more than 14,000 considered to be in housing stress. The problems presented by territoriality, discussed earlier, are demonstrated in part by the apparent “mis-match” between areas where there is high demand and areas where accommodation is readily available. This is illustrated by the level of voids within both NIHE and housing association stock in certain areas. In 2002–03 the NIHE reported 6268 void units whilst housing associations reported a total of 1208. 1.8 The current five year rolling programme of new social housing is guided by strategic guidelines that envisage 10% of the programme will be dedicated to rural areas, up to 20% set aside for supported housing and the remaining 70% allocated to general needs provision. It is intended that up to 25% of the programme in future years will be used to address housing stress in urban areas particularly in North and West Belfast. Each scheme included in the programme is supported by individual market analysis which means the programme is developed by integrating the “top-down” strategic assessment of the need for social housing at the regional level with the “bottom-up” analysis of need expressed at local level through the Common Waiting List and latent demand testing in rural areas. 1.9 A combination of factors such as the peace process, a healthy economy, high employment levels and low interest rates together with a massive increase in the price of land, has substantially forced the price of houses up in certain areas and made aVordability an issue. Whilst at present, aVordability is not seen as an immediate or widespread problem, first time buyers in some local areas are experiencing diYculties. This is particularly evident in popular locations where demand is high, and has been evidenced in coastal towns where the problem is exacerbated by the demand for second homes. Many potential first time buyers may be forced onto the social housing waiting lists. However, in other areas prices have remained relatively static. The Department for Regional Development, which has responsibility for strategic planning proposes, in a forthcoming Planning Policy Statement on “Housing and Settlements”, to introduce measures which would use land zoning as a method for delivering aVordable housing in specific problem areas. 1.10 Whilst measures planned by DRD will play a major part in determining the supply of development land for housing provision to facilitate sustainable development and support the delivery of social housing, they will not mitigate the anticipated increase in demand, because of the escalation in the price of land. Since 1995, the cost of land for residential development has quadrupled. This change is a direct result of the demand versus supply position of development land.

Table 11

COMPARISON OF KEY INDICATORS

Residential Land (Small Sites): 2001 to 2002 !5% 2002 to 2003 !35% 2003 to 2004 !10% Residential Land (Bulk Land): 2001 to 2002 !5% 2002 to 2003 !22% 2003 to 2004 !18% Existing post-1960 Semi-detached house (average price to buy): 2001 to 2002 !11% 2002 to 2003 !10% 2003 to 2004 !9% [Note: above based on average taken over the 26 No City/District Council Areas]. Source: DSD, 2003 Ev 66 Northern Ireland Affairs Committee: Evidence

1.11 Meeting social housing need is further complicated by a situation unique to Northern Ireland. Simply identifying sites for housing development is a problem in, for example, North Belfast, where there is an extremely high level of demand from the Catholic side of the community, but low demand from the Protestant side. Many potential brownfield development sites may be identified in Protestant areas, but there are major community relations diYculties and political sensitivities surrounding the use of these to meet the needs of the Catholic community because of the territoriality issue covered earlier. Housing development is therefore constrained to the selection of small “pepper potted” areas of land, to develop social housing for the Catholic side. This problem is compounded as development on a number of sites in and around the city centre for new build social housing schemes is currently constrained by the implementation of the Belfast City Centre Regeneration Strategy.

Conclusion 1.12 Demographic and economic factors are the primary forces driving demand for social housing. The composition of the Common Waiting List reflects changes in the structure and size of households, evidenced by the increasing numbers of singles, small families and elderly who are applying for accommodation in the social housing sector. A stronger economy coupled with scarcity in the supply of land for residential development has inflated the cost of both private and social housing, making entry to the housing market increasingly diYcult.

Annex 2

THE CONTINUING DECLINE IN THE SUPPLY OF SOCIAL HOUSING

1.1 There has been, and continues to be, a decline in the supply and stock of social housing. There are a number of reasons for this.

Supply 1.2 The new build targets have not been met in recent years and land acquisition is accepted as the principal diYculty faced by Housing Associations in developing schemes. Historically, Housing Associations have not been funded to acquire land in advance and this has been identified as a major problem that prevents early starts on site. Under current funding arrangements it is not in the interest of the Associations to “land bank”, except at their own expense and risk, in order to secure land for future development. The result is that Housing Associations have been expected to purchase land, secure planning permission, appoint a contractor and start on site, all in the 15 month period from issue of the new build programme to end of financial year. This has been a major obstacle in delivering the annual social housing programme targets.

Actions Taken to Address Problems with Delivery 1.3 New arrangements introduced by the Department to facilitate the advanced acquisition of land and an in-year review of the Total Cost Indicator (TCI) are intended to alleviate some of the diYculties associated with securing land for social housing development. The TCIs applicable to the 2003–04 programme show an increase of some 8% on the previous year, this increase is attributable to increasing land and other building costs. By comparison the Retail Price Index (RPI) increase was 2.9% for 2003. 1.4 The major problems identified as aVecting the successful and timely delivery of the programme are land acquisition, planning, rising costs, (ie costs are rising at a rate higher than the annual uplift in the budget so the number of starts that can be achieved has to reduce) and the backloaded programme. 1.5 The actions taken to address the problems include: (i) A review of the Net Stock Model to establish the need; (ii) Setting up New and Improved Structures eg — An informal Joint Departmental/ Housing Executive Group that made a large number of mainly administrative recommendations, all of which have been addressed. — A Tri-Partite Working Group, comprising representatives of the Department, Housing Executive and Housing Associations, to focus on the major problems. — A New Build Steering Group involving senior oYcials from the Department and Housing Executive to monitor diYculties with particular emphasis on NIHE transfer schemes. — A Formal Liaison group set up between the Planning Service and the Department to address delays in the planning process (including roads problems). (iii) Programme Management. The three-year programme has for the first time been rolled out to a five year programme. This will provide Housing Associations with a longer lead in time. Northern Ireland Affairs Committee: Evidence Ev 67

(iv) Building cost increases are being identified more accurately and earlier to permit bids for additional costs to be made to cover the diVerence between actual building cost increases and the RPI inflation rate allowed by H M Treasury. 1.6 The DTZ Pieda Review into the Needs and EVectiveness of the Housing Programme identified rising social housing costs as an issue requiring further investigation. The Department commissioned research to determine how and for what reasons social housing costs have risen. The data have shown that the cost of providing a new social home in Northern Ireland has increased by some 95% in the last 10 years (62% in the last five years and 26% in the last three years). The work in reviewing the rising costs of social housing will have implications for the resources required if the Department is to meet the levels of new build recommended by the Net Stock Model and local information on need.

Stock 1.7 The NIHE began selling housing in the 1970s when the Department approved sales of certain categories of properties. Since the scheme’s inception the NIHE have sold 113,661 dwellings and has, in cash terms, generated approximately £1,294.9 million to support housing investment in new home construction, and capital improvement of the existing housing stock. The NIHE may keep the receipts from sales up to the annual target figure but any surplus funds arising from sales above that figure must be returned to Central Government. The highest levels of house sales tend to be in stable areas, which normally have had low levels of turnover for re-let and the impact on the availability of houses for re-lets initially tends to be minimal. The scheme has been particularly successful in promoting mixed tenure in areas traditionally associated with social housing and it helps address aVordability issues in certain areas by providing access to low cost home ownership. House sale prices have increased considerably over the last two years, and in 2002–03 the increase in the average selling price rose almost 20%. The average selling price is approximately £25,000 per dwelling for 2003–04. 1.8 With the extension of the House Sales Scheme to housing association tenants and, in light of the decline in social housing stock, the Department is currently reviewing the Scheme to determine what, if any, changes should be made to it.

Role of Private Rented Sector 1.9 As the decline in the supply of social housing continues it has become necessary to look at alternative ways of oVering housing to those in need. In this regard the private sector will play an increasing role. However the private rented sector is complex and there are a number of issues to be addressed to ensure that the sector can oVer good quality aVordable accommodation to those in need. The private rented sector plays an important role in meeting housing needs in Northern Ireland by oVering a choice and a flexible and speedy option for those who, for whatever reasons, are not ready to buy their own homes. It also provides an alternative for those living in areas where there is a high demand for social housing; the sector now accounts for 7.6% of the total housing stock.

Role of Co-Ownership 1.10 The Department for Social Development part funds the Northern Ireland Co-Ownership Housing Association which provides assistance to those on marginal incomes, and who would not be eligible to obtain a full mortgage, to allow them to become home owners. Participants join on a 50/50 equity sharing basis and then purchase further tranches of equity at the prevailing market value, as and when their circumstances permit. Since its inception in 1978 the scheme has enabled 17,500 participants to gain a foothold on the property ladder through its equity sharing scheme, over 13,000 of whom eventually moved to full home ownership. Many of these participants would, in the absence of the scheme, have sought accommodation in the social housing sector.

Pressure on the Budget for the Provision of New Social Housing 1.11 The budget for the provision of new social housing is subject to a number of competing demands. The requirement to supply a target number of new dwellings has to be balanced with the need to provide Small Adaptations Grant (SAG) to housing association stock and to provide recompense to housing associations that dispose of a property to a sitting tenant at a discounted rate. Under the terms of the SAG, the Department has given an undertaking to fund, on a retrospective basis, small adaptations, such as disabled showers and access measures, where need has been established and supported by DHSSPS occupational therapists. The process is demand driven. If Health and Social Services Boards increase the number of referrals through the allocation of increased resources, or otherwise, then the impact will be an increase in the demand for adaptations. Health policies such as Care in the Community encourage people to remain at home with the resultant impact that those homes have to be modified to provide appropriate accommodation evidenced by the increasing demand for assistive technologies. In addition, NIHE Ev 68 Northern Ireland Affairs Committee: Evidence

awareness campaigns and word of mouth have changed public perceptions and generated increased demand. There are substantial cost benefits in this approach rather than having to provide specialist supported housing schemes. 1.12 The Voluntary Purchase Grant Scheme (VPG) was introduced in 1998 to enable Registered Housing Associations (RHAs) to receive recompense when they dispose of their social housing for rent at a discount to their sitting tenants. Proceeds from the sale of the properties, including grant previously received by the association and which would have been recovered by the Department at the time of sale together with VPG claimed plus any surplus equity, must be paid into the Disposal Proceeds Fund. This is a restricted reserve and can only be used for the purposes of providing replacement stock or bringing long-term voids back into use. The demand the scheme has placed upon the overall housing budget is largely due to both an increase in the awareness of sitting tenants of the facility and in the number of associations participating in the scheme. The increase in average payment from £14,736 in 1999–2000 to £20,442 in 2002–03 is primarily due to the buoyancy of the housing market and the increase in value of the houses purchased. 1.13 In addition to the pressures on the budget outlined above the application of resource accounting to the new build programme produces a number of unique challenges focused around the complex interaction of developmental timetables and evaluation of funding requirements.

Conclusion 1.14 Government policy to facilitate and encourage home-ownership has had a major impact on the numbers of social housing stock (available for rent). The replenishment of the stock is subject to the competing demands on the housing budget and the diYculties in recent years in delivering the new build programme to agreed levels. The Department is reviewing policies and strategies to ensure that the necessary stock levels are in place to cope with current and anticipated demand. The projections of demand from various analysis (the NSM, the Cambridge Model and the Regional Development Strategy) agree that demand will continue to grow with at least 1,400 new units per year required. The Department has developed a number of responses, some of which are outlined above, to ensure that demand can be satisfied. This includes measures to promote co-ownership and to stimulate and support the private rented sector as viable options for persons considering social housing.

Annex 3

THE QUALITY OF HOUSING STOCK 1.1 The NIHE has conducted seven House Condition Surveys since its inception in 1972 with the first comprehensive survey carried out in 1974. That survey revealed that 20% (90,000 dwellings) of the housing stock was unfit, a rate three times that of England. The standards of fitness have changed considerably during intervening years and continuous improvement can be evidenced by the fact that the rate of unfitness has decreased to 4.9% in 2001. The marked decline in the unfitness is, to a large extent, explained by higher levels of economic prosperity and confidence in the housing market, resulting in a higher rate of new dwelling construction and greater interest in improving existing homes in the private sector assisted by grants expenditure, as well as the continued investment in social housing. Levels of investment in housing in Northern Ireland have been consistently higher than in GB. As one author notes “Northern Ireland has enjoyed the highest rates of house construction, of demolition and clearance of unfit properties and of providing grant aid than any other region.” (McPeake: 2001) 1.2 The Housing Executive must seek Departmental approval to any demolition of its property. The proposal to demolish must, other than in exceptional circumstances, be accompanied by a full economic appraisal of options. The appraisal must clearly demonstrate that demolition is the most cost-eVective option. The exceptions are cases where dwellings are vacant and derelict and there is no demand or waiting list for housing in the general area. In these circumstances, a broad costing of options is acceptable. 1.3 It is through this sustained activity that the disparity between house condition in Northern Ireland and the rest of GB has been successfully addressed. The state of repair of the housing stock is especially pertinent, as new standards for housing “Decent Homes Standard” have been introduced in England. The Department currently supports the improvement of the stock through PSA targets for preventing unfitness, adapting homes to meet special needs and raising energy standards. The Department is considering the Decent Homes standard application to Northern Ireland as the system would draw together these strands into a single measurable index of housing quality. 1.4 The 2001 House Condition Survey collected information on Northern Ireland’s housing stock, judged against the English Decent Homes Criteria. The main points to note were that 32% of all homes failed the standard, mainly (88%) on the thermal comfort criterion, with 17% failing due to disrepair and 10% due to lack of modern facilities. There was considerable variation across the tenures. Houses can, of course, fail to meet the standard on more than one criterion. 1.5 Half of all NIHE properties failed the decent homes standard, whilst only 7% of Housing Association properties failed, probably due to the relatively new stock in this sector. Older properties were much more likely to fail—only 1% of homes built after 1980 failed. Of NIHE and Housing Association properties that Northern Ireland Affairs Committee: Evidence Ev 69

failed, 97% did so on the thermal comfort criterion, and this was the main reason for failure across the whole housing stock. This criterion was also particularly notable in some vulnerable groups—for example, it was the reason for non-decency in 94% of such homes occupied by lone parents. Presenting the House Condition Survey to the Department, NIHE noted that failure to meet the thermal comfort criterion was particularly sensitive to the standards of insulation in a dwelling—a diVerence of a few millimetres of loft insulation could mean the house passes or fails. In addition, the variable nature of the insulation standard means that replacing solid fuel heating with oil or gas reduces the thickness required, and renders the home decent. 1.6 The location of non-decent homes is broadly in line with the location of houses as a whole—there is only a slightly higher rate of non-decency in isolated rural areas and in the Belfast Urban Area. There is no obvious pattern to the profile of non-decency across the district councils, other than the low incidence in Derry and Limavady and the high incidence in Craigavon. Derry City Council area has fairly new social housing stock, whilst the high rate in Craigavon is perhaps to be expected given the existence of a lot of pre- 1980 social housing with high rates of vacancy. 1.7 Under the Housing (Northern Ireland) Order 1981, the NIHE may maintain its housing and other stock. The NIHE provides a response maintenance service and a planned maintenance programme within the financial resources available in its approved budgets. This maintenance strategy must be to such a standard as will preserve the value of the asset represented by that stock. The NIHE has successfully administered large-scale improvement projects such as the Heating Replacement Programme that enjoyed an allocation of £6 million from the Reform and Reinvestment Initiative to enable an acceleration of the programme. The NIHE’s Maintenance Policy is at present under review, as recommended in the DTZ Pieda report on The EVectiveness of the Social Housing Programme, and a report on this is with the Department for consideration. 1.8 The NIHE’s heating policy is to make central heating available to its tenants using natural gas in areas where it is available, and oil elsewhere. This policy was introduced in 2000, following the Building Research Establishment’s (BRE) Report into the Province’s domestic fuel and heating systems identified a substantial decline in the use of solid fuel for space heating in the domestic owner-occupied sector in Northern Ireland, with a corresponding increase in the use of oil central heating among homes in that group. This trend had not been reflected in public sector housing stock. The arrival of natural gas therefore, meant an opportunity for considering a new fuel as a heating option; one that was regarded as more controllable, less damaging to the environment; and price regulated. It was recommended that the NIHE reassess its heating position and consider, inter-alia, a move to less polluting fuels. 1.9 This supported the NIHE in its role as Northern Ireland’s Home Energy Conservation Authority (HECA), which requires the NIHE to bring about significant improvements in the energy eYciency of the housing stock throughout the residential sector, including improvements in air quality. 1.10 The designation of NIHE as Northern Ireland’s HECA highlighted a potential conflict between the NIHE’s landlord policy of favouring mainly solid fuel and delivering its new responsibilities under HECA. However conscious of the NIHE’s heavy reliance on solid fuel for domestic heating, and its HECA responsibilities, it responded to reports that generating electricity for the domestic sector and dependency on solid fuel creates higher levels of emissions of both carbon and sulphur dioxide than either gas or oil because of its high carbon content, by implementing BRE’s recommendations. 1.11 Housing Associations registered with the Department are required to maintain their stock using rental income. The minimum standards for maintenance works will be set out in the amended Housing Association Guide due for completion in Summer 2004. OYcials routinely audit Housing Associations to ensure compliance. In addition to maintenance, Housing Associations conduct a range of adaptations to make dwellings more suitable for tenants with special needs. The Department is committed via its PSA target to deliver 1,200 adaptations in 2003–04, this was amended upwards to 1,500 adaptations with a projected spend of £3 million. 1.12 The Housing Association Guide provides essential guidance for Registered Housing Associations in accessing funding from the Department for Social Development, for the provision of social housing for rent. The Guide covers the revised financial aspects introduced by the Housing (NI) Order 1992, and— amongst other things—lays down the Department’s main Procedural, Design, and Procurement requirements for Associations undertaking schemes. The Department uses the Guide to ensure that all properties becoming part of the social housing stock meet required standards. The Guide has been in existence for 12 years, and although it has been periodically amended—and augmented by numerous Housing Association Circulars—inevitably the structure and some of the guidance is now outdated. The Guide is currently under review with the intention of making the amended guidance available on the Department’s web-site by Summer 2004—some revised elements of Part 1 of the Guide have been accessible since April 2003. The Department is using the review to restructure the Guide, update and modify guidance to Associations to reflect current and anticipated standards, legislative requirements etc, and to illustrate best practice in a number of areas. 1.13 An example of the adoption of Best Practice followed innovative work conducted by the Joseph Rowntree Foundation (JRF), the UK’s largest independent social policy research and development charity. In the 1980s, the JRF became particularly concerned about the quality of British housing and its accessibility to large segments of the population. In 1991 the Lifetime Homes concept was developed by a group of Ev 70 Northern Ireland Affairs Committee: Evidence

housing experts. Lifetime Homes have 16 design features that ensure a new house or flat will fully meet the needs of most households. In the mid 1990s the Government indicated its wish to extend Part M of the building regulations, which deals with accessibility to cover houses as well as public buildings. The new Part M regulations came into force for all new housing built after October 1999. Lifetime Homes features add to Part M regulations the built-in flexibility that make the homes easy to adapt as people’s lives change. 1.14 The Department adopted the Lifetime Homes standard in April 1997 and promoted its use by introducing additional funding by way of a supplementary multiplier in April 1998. In April 2001 it was made a requirement for Housing Associations to build all new general needs housing to the Standard. The Standard makes a home accessible to the occupant who lives there and to visitors. The adoption of the Standard has resulted in fewer adaptations being required and where they are, the works have been easier due to house design. This is especially relevant as approximately £30 million is spent annually adapting property in Northern Ireland. The additional cost of incorporating the Lifetime Homes standards across tenures has been estimated to range from £165–£545 per dwelling which could be recouped in 3–10 years. It has also been suggested that the Lifetime Homes Standard promotes social integration by reducing need for temporary residential care, has a role in accident prevention and associated savings in health costs. It has made the housing stock more accessible and as a consequence more sustainable. 1.15 In 1989 “Secured by Design” (SBD), a police initiative, was introduced in GB for new houses and housing estates. Its purpose was to encourage the building industry to adopt crime prevention measures in development design; and to assist in reducing the opportunity for crime and the fear of crime, creating a safer and more secure environment. The Northern Ireland version of SBD was formally launched by the police service in September 1998. The scheme provides advice on designing out crime and is available free to Housing Associations from the Police Architectural Liaison OYcer. The Department for Social Development embraced the principle of Secured by Design and after consultation with the Northern Ireland Federation of Housing Associations (NIFHA) issued guidance in February 2001 to Housing Associations recommending that each Association should urgently adopt, as a matter of policy, a rolling programme of obtaining advice from the Architectural Liaison Service for all its existing housing stock. The Department also introduced funding by way of a supplementary multiplier for all Housing Association new build, rehabilitation and re-improvement schemes to achieve the “Secured by Design award”. 1.16 The Housing (NI) Order 2003, provides for a Grants scheme to tackle unfitness in the private sector and enhancing the potential for a more independent lifestyle for people with disabilities, in much the same way as councils do in England, Scotland and Wales. The revised scheme follows the private sector grant provisions of the Housing, Grants, Construction and Regeneration Act 1996. It is largely discretionary while continuing with mandatory and discretionary disabled facilities grant. The discretionary nature of the scheme allows an element of flexibility, to better manage demand and the budget as well as allowing better targeting of resources at areas, such as rural areas, where unfitness is greatest. In addition, the discretionary scheme will help the NIHE tackle social exclusion by supporting vulnerable people, improving the quality of housing stock and contributing to ensuring that there is an adequate supply of housing to meet needs. 1.17 Despite the important role played by grant-aid in improving the condition of the private sector stock and in particular in bringing unfit dwellings up to the Fitness Standard, more than 3,000 dwellings become unfit each year. Most dwellings are unfit due to unsatisfactory facilities for the preparation and cooking of food, disrepair and dampness, reinforcing the need for suYcient investment to ensure that the overall condition of the stock continues to improve. In 2001 there remained nearly 32,000 dwellings that were statutorily unfit. Most of these are: (i) to be found in rural areas (particularly in isolated rural areas); (ii) occupied by the most vulnerable sections of society—the elderly and particularly those aged at least 75, the unemployed, people who were sick or had a disability and households on low incomes (all are over represented in terms of the percentages of those who live in unfit dwellings); and (iii) have been built before 1919.

Conclusion

1.18 The quality of the housing stock in Northern Ireland has been transformed since the inception of NIHE. The sustained investment in housing over the last 30 years has addressed disparities between Northern Ireland and elsewhere in the UK. Public expenditure on housing across tenures through new build, grants, demolitions and maintenance has enabled significant reductions in the rates of unfitness and will support Government eVorts to meet or surpass existing and proposed standards for housing. March 2004 Northern Ireland Affairs Committee: Evidence Ev 71

Witnesses: Mr David Crothers, Director of Housing, Mr Billy Graham, Housing Association Branch, and Mr Jerome Burns, Housing Policy Branch, Department for Social Development, examined.

Q120 Chairman: Gentlemen, please accept my Q122 Chairman: You have spoken about the apologies for the lateness. I wish there was diYculties in estimating need across the somewhere exotic I could tell you we had been. It geographical area because of the obvious existence was the Dargan Road Landfill Site that kept us of hot spots but there is another level of need that from you. This is our third formal evidence session. can be identified, and that is trying to compare We have spoken at great length about the Housing stress in terms of the need for family Department’s work. We do not wish to substitute homes against the fact that we have many more the Department’s work but merely supplement it single people who wish to enter into the social and hopefully ensure that during the suspension of Housing sector. Does the Department agree that the Assembly much of that work can continue and many of the single people who apply for social that Ministers in Westminster take seriously the Housing should be dealt with in a diVerent way or needs of the community here in Northern Ireland. are you happy that they are still regarded as being Can I start by asking the first question, which in need because you are talking about two very revolves around the use of the Net Stock Model in diVerent needs, are you not? You are talking about estimating demand for social housing. The recent a change in demographics which brings about more examination by the University of Ulster, the single people wanting social housing, you have lots University of Cambridge and Queen’s University of families in Housing stress and yet they are both could lead to significant changes in the model if the measured against the same model of need. Y Department so wished, so can I ask you how useful Mr Crothers: Indeed, and that is a di culty. Single you think the Net Stock Model is in estimating people make up the largest percentage of the demand for social housing, whether or not you see waiting list, some 44%, but it is by its very nature a that there is a need for any significant change and transient market in that there are people who come on to the waiting list and there are people who go whether you accept criticism from some of the V community groups who feel that demand for social o the waiting list. There are those indeed who rented Housing is not best measured by the Net would put their name down almost speculatively. I Stock Model? am thinking in terms of elderly people who may wish to put their name down for sheltered Mr Crothers: Thank you, Chairman. The Net accommodation, so it is a diYcult market to cater Stock Model is a useful tool from the point of view for and to respond to, but from the Department’s of providing an indication of the level of new build point of view, from the point of view of the social social Housing required across the Province as a Housingprogramme,wefactorintoitthatour whole, but it is based primarily on demographic concern centres around general family housing, trends so it can do no more than provide a base line. which makes up about 70% of the programme, and It requires then to be augmented by other the rest would be for singles, for sheltered information and that other information is to be accommodation, for the disabled and other groups provided by the Northern Ireland Housing with special needs. Executive. The Net Stock Model is very much a top-down approach providing no more than an indication across the Province as a whole. It is not Q123 Mr McGrady: Looking at the statistics of the area specific or site specific and that information is social Housing build programme 1998–99 to dealt with from the information provided by the 2002–03, there has been a singular failure to deliver Northern Ireland Housing Executive. There was that programme to the extent that in the last year, concern about the Net Stock Model and just how 2002–03, you were only building slightly over one robust it was, and it was for that reason that the third of what was built in the years before that; in University of Ulster and the University of other words 55% delivery, 45% shortfall. Who is to Cambridge carried out a review which essentially blame for that failure? confirmed that the figure was more or less right, in Mr Crothers: I am not sure that “blame” is the other words, about 1,500 new units were required appropriate term. There certainly has been annually. In some respects I can understand why diYculty in delivering the new build social Housing there might be criticism of the model in that it is programme and the reason for that is quite simply a model. It is not identifying that there are complex. In some respects it goes back to the particular needs at particular locations; that transfer of responsibility for new build from the information is derived from another source. Housing Executive to Housing Associations. When the Housing Executive was building it had a land bank for a large part of the programme that it was taking forward. When that transferred to Housing Q121 Chairman: What you are saying is that it is a Associations, whilst there was land available there useful indicator but you would always expect it to was not a diYculty in delivering the programme but be supplemented with additional information on land and site availability has been one of the major the ground? obstacles in developing the programme in recent Mr Crothers: Indeed. The Northern Ireland years. We recognise that in addition to land there Housing Executive is the sole arbiter of Housing were process and procedural changes which need in Northern Ireland and it is to it that we obviously took place in the transition but we have would look to provide the information that is been endeavouring over the last couple of years to required at particular locations. address the problems associated with the new build Ev 72 Northern Ireland Affairs Committee: Evidence

30 March 2004 Mr David Crothers, Mr Billy Graham and Mr Jerome Burns programme and we have been doing that with all Mr Crothers: Part of the problem is working on the the key stakeholders. The Housing Executive has a basis of an annualised figure. With regard to the key role to play in this, as indeed have the Housing 1,500, anyone who has been involved with the Associations themselves, so in addressing the building industry knows just how diYcultitisto structural diYculties that we had with it we have achieve a target like that and in some respects it is a now reached the point where, whilst perhaps it is moveable feast from the point of view that an going too far to say we have cracked it, this year, for individual scheme may start in one year and, as example, we aim to achieve our target or, if we do likely as not, finish in another year, so we were not, we will fall short by a very small number. The particularly keen to move away from the annualised reason why we are able to achieve our target is that programme. That is not to say that we are ignoring we have addressed all the issues that were it or trying by sleight of hand to avoid meeting a contributing to delays or problems in delivering the particular target. Nonetheless, the objective is to programme. move towards a more realistic regime whereby we can achieve a social Housing programme that meets Housing need. In terms of the 1,500 figure, that was Q124 Mr McGrady: Are you saying that there were the figure that was produced following the review by unrealistic expectations when the transfer was made the two universities. As I mentioned, that figure is following the 1996 review to Housing Associations based largely on demographic trends. It does not with virtually total responsibility for new social take account of problems in specific areas or Housing build? Are you suggesting that the upswing locations. If that is factored into the equation the this last year, 2003–2004, is going to continue into Housing Executive have come up with a figure of the ensuing years or do you think that the whole idea perhaps an additional 250 units that would be of transferring from the Housing Executive to required for any mismatching that might take place. Housing Associations is a bad idea and we should The reports from the universities and the Housing revert to those who delivered in the past according Executive are currently with us and a decision will be to target? taken as to what is required in terms of future Mr Crothers: We are optimistic that from here on in Housing provision. we can and will meet the new build social Housing programme. Any shortfall will not be due to problems with the programme itself but rather with Q126 Mr McGrady: The Housing Associations have made the suggestion that if the Department were to funding. For example, as it stands at the moment we reduce the bureaucracy to which they are subjected only have suYcient funds to start 1,300 units next the registered Associations would have a much year, but certainly on the basis of the programme better prospect of achieving their approved that we have now put together we are optimistic that development targets. Have you any comment on we could achieve that, if not 1,500 were we to be that? successful in bidding for additional funds. In terms Mr Crothers: I have some sympathy with that view. of whether or not it was appropriate to transfer the As part of my job I visit all Housing Associations new build function from the Housing Executive to and certainly that is a message that comes across to Housing Associations the point at issue at that time me from time to time, that we are over-burdening was private finance and the ability or otherwise of them with bureaucracy but, by the same token, my the Housing Executive to continue to build at 100% Permanent Secretary is the accounting oYcer for the grant. The decision was taken that Housing grant that Housing Associations receive and I Associations, as has happened elsewhere suppose the trick is to ensure that the level of throughout the UK, have the ability to lever in bureaucracy is commensurate with the level of risk private finance. Since 1991 they have levered in and responsibility. Certainly we for our part will try £233.5 million and they have built something of the to look at ways of reducing bureaucracy. But by the order of 4,000 houses at no cost to the public purse. same token the Northern Ireland Audit OYce is I think we can draw our own conclusions from that Y there and has the power now to follow public despite the di culties that have taken place but, as I funding, to go into Housing Associations to see how Y say, those di culties hopefully have now largely they are dealing with and spending the money. It is been addressed. important therefore that we have in place robust systems and processes that stand up to scrutiny. Q125 Mr McGrady: Could you confirm that the annual target is currently running at or is supposed Q127 Mr McGrady: To achieve the new build to be hitting 1,750 social Housing new build, or is it programme do you think it would be desirable to 1,500, because these two figures have been bandied transfer a share of the burden to other social about and we were informed yesterday by the landlords, such as the Northern Ireland Housing Northern Ireland Federation of Housing Executive, or indeed Housing Associations from Associations that the figure they had achieved was Great Britain or the Republic of Ireland? 1,331 or some such figure? What is the Department Mr Crothers: There are three key players in the doing to enable the Associations, they having the delivery of the programme: the Department, the responsibility, to meet their target? For instance, the Housing Executive and Housing Associations. The Department’s public service agreement no longer success or otherwise of delivering the programme is contains any specific target for building aVordable in no small measure due to the contribution of each housing. Why is that? of those players. We have at the present time I think Northern Ireland Affairs Committee: Evidence Ev 73

30 March 2004 Mr David Crothers, Mr Billy Graham and Mr Jerome Burns

25 Housing Associations in the development Mr Graham: David mentioned that there were 25 programme. Some might argue that that is too many Associations currently in the building programme. for an area the size of Northern Ireland given the If you take the five big ones out of that, 20 of the scale of the new build programme. Perhaps it would smaller Associations who are currently contributing be inappropriate for me to comment on that but in to the programme. Associations are not generally terms of adding to it I think I would have a view in taken out of the loop unless Audit has identified a that I do not feel there is a need for any additional problem with them and then we hold them out of the players to come in. We already have Housing programme until such time as they get themselves Associations here that have sister organisations in back into favour, but I do not think anybody has GB Clanmil, Fold, Habinteg or Oaklee for example, deliberately been cut out at the moment. which were Housing Associations that perhaps started in England, so at this point in time we are certainly not looking for any more players to enter Q131 Reverend Smyth: There are those who say the development programme. there are some 39 Housing Associations, so that is 14 that do not seem to be involved. Is that right? Mr Graham: A number of those Associations would Q128 Chairman: Can I check on that? The years be focused on particular need groups and once they when you were not meeting target, when 600 or 700 have met that particular need they no longer need to houses were being built against a target of 1,500, and build. They would be Associations that have been this year, when you may reach 1,400 but you are still focusing on people with learning disabilities and so just under, have left a sizeable backlog in the number on. If they have met that particular need then we of houses that should have been delivered but which would not expect to see them in the programme. have not been. Are you saying that that backlog will have to be met by an increase over 1,500 by Housing Associations and, if so, will additional funding Q132 Reverend Smyth: As the Chairman has pointed necessarily follow? out, there seems to be unmet need from the past, no Mr Crothers: That is one of the issues we are matter what may happen with changing considering at the present time, but because of the demographic circumstances in the future. Are there nature of the model, that it is based largely on any short term measures that could be taken to demographic trends, and also given the fact that address the need for social housing? there is such a high percentage of singles on the Mr Graham: David has already referred to the fact waiting list, there is a debate in and around the need that the budget that we have is already being totally for stepping up the programme and whether the used. We do not have any scope to be taking any new backlog can be calculated simply on a shortfall initiatives to increase the numbers. In the previous between what was delivered and what the Net Stock years that you have mentioned we spent our money Model was saying needed to be delivered. The jury is to the full. Even though we only achieved 900 starts still out on that issue. in 2002–03 the money was spent. In the current year we are already up to over 1,400 and the money will be totally spent this year. David mentioned that we Q129 Reverend Smyth: Can I press that point might not quite achieve the target but the money will again—the jury is still out? There are those who say be spent. We have introduced initiatives such as that some of the smaller Housing Associations who buying existing satisfactory houses so those houses did meet their targets because they were dealing with are available immediately to put people into, but a localised situations have been cut out of the loop. If factor that we have not focused on yet is the waiting they were brought in again do you think they would list and the fact that on the Northern Ireland waiting be more eVective, bearing in mind that some of the list the average waiting time is nine months for a ones that you mentioned are fairly large house. That conceals the hot spots of people who Associations which have a lot on their plate? have been waiting a lot longer than that, but nine Mr Crothers: I am not sure that community based months is not a long time to wait on average for a Associations would be any more or any less eVective house. than the larger Associations. Obviously, we carefully monitor and regulate all Housing Associations and assess their performance, and Q133 Reverend Smyth: Members of Parliament in indeed if they were not performing well they would Northern Ireland would say that a lot of folk are on not be in the programme. I certainly would not be for much more than nine months. drawing a distinction between a community or local Mr Graham: Yes, there are hot spots, but the bulk of based Housing Association and one of the larger people are housed within a very short period of time. Housing Associations in terms of their performance, Reverend Smyth: In April 2001, as I understand it, and I do not think that the programme has been the Chartered Institute of Housing urged the NIHE disadvantaged by schemes being taken forward by and the DSD to publish the consultants’ report that either larger or smaller Associations. had been commissioned as a research project to examine future options for investment and management of social Housing in Northern Ireland. Q130 Reverend Smyth: Would you confirm or reject You did say earlier that the Department is the suggestion that some of the smaller ones have considering something at the moment but they have been cut out of the loop for providing social had this report for some three years now, is that housing? right, and it has not yet been published? Ev 74 Northern Ireland Affairs Committee: Evidence

30 March 2004 Mr David Crothers, Mr Billy Graham and Mr Jerome Burns

Q134 Chairman: That is the Chapman Hendy think it is generally acknowledged that in Northern report. Ireland we are blessed with Housing stock which is Mr Crothers: The Chapman Hendy report has only in good condition, so there is not the same pressure been produced within the last couple of months. The to go down the route of, for example, a large scale Chapman Hendy report looks at the various stock voluntary transfer. options available to the Department in relation to the Northern Ireland Housing Executive, looking at, for example, large scale voluntary transfers, arm’s Q139 Reverend Smyth: Can I be clear that you are length management companies, etc. It is a very saying that the Housing Executive, when the drafts technical document. It was for that reason that we have come forward, have sent them back and the referred it to the Departmental Economists and we Department at no time has seen them until they have are currently awaiting a response from them to that been presented now? report, following which it will be sent to the Mr Crothers: No, I am not saying that. We would be Department of Finance and Personnel for them to party to them and I have certainly attended meetings consider, but I assure you that we have not been at which issues have been discussed, but these were sitting on our hands on this one. It was only received largely technical meetings about the models to be within the last couple of months. looked at, about the impact of various changes in government policy that need to be factored into it. Q135 Chairman: Can we check those dates because We are at one, I suppose, with the Housing the report was commissioned in October 2000? This Executive on this, in that it is as much our report as is the report we are talking about? it is theirs, so if there is any blame in the delay we too Mr Crothers: I am not aware of the exact date but would carry some of the responsibility for that. It certainly it has taken a long time to produce, as was not a concealing game. We are not seeking to much as anything because of the changing situation hide behind the delay in the production of this nationally. We were anxious to ensure that all the report. There is nothing in it that would give us cause models were taken into account, so it did take quite for concern. a while to produce. Reverend Smyth: I want to be clear because, as I understand it, it is the Department’s position to set the policy. It is then up to the Northern Ireland Q136 Chairman: The Chartered Institute did urge in Housing Executive to implement it, mainly through April 2001 for the report to be published, so it must have been in a shape or form by April 2001 where the the Housing Associations. findings could have been shared. Mr Crothers: No, that is not the case. I am just Q140 Chairman: One of the other reasons for our wondering whether we are perhaps talking about anxiety is that some of the questions that were asked diVerent reports. at commissioning stage related to issues such as whether or not the Housing Executive could borrow Q137 Chairman: This is the HACAS Chapman or seek finance from the private sector and we as a Hendy report. committee would be in a position to understand Mr Crothers: Various drafts have been produced what the thoughts of the Department are in respect along the way but at no stage were we in a position of that and other issues before we publish our report to publish a report or to issue a report for discussion in September. Do you think we will be in a position or consultation because it was still being worked up. very soon to receive a final copy of the report so that we can have a greater understanding of the future Q138 Reverend Smyth: Is that because the priorities and policies? Department were not happy with what they were Mr Crothers: I can assure you, Chairman, that we reporting and were asking them to go over it again? will press for a response from our economists, which Could you tell us what are the main conclusions that we have already done, but as to when the have been reached already because, although it is Department of Finance and Personnel, which is our going to the Department of Finance and Personnel Treasury Department, would be in a position to join to look at you would at least know some of the us in coming to a decision about the way forward I main findings? could not put a date on. The Housing Executive is Mr Crothers: In no shape or form was the bound by the Treasury rules and as likely as not any Department trying to influence the findings of the move to transfer stock out will need to be carefully report. The Housing Executive was probably the managed if it is decided to go down that route from main player in setting the terms of reference and the point of view of how that is treated in factoring in all the relevant information to the report government accounting terms. and to the various models that needed to be looked at. As to what the main findings of the report will be, I can say at this stage that it will be as likely as not Q141 Mr Bailey: Can we turn to issues of Housing the status quo in that the Housing Executive is finance now? First of all, what impact will budget fulfilling an important role in terms of both its pressures on the provision of new social Housing strategic function and its landlord role. The main have upon the ability to supply it? What impact reason for going down the large scale voluntary would the ring fencing of all funds generated by transfer route and ALMOs was because of the social Housing have on the Department’s ability to condition of local authority Housing stock, and I meet its targets? Northern Ireland Affairs Committee: Evidence Ev 75

30 March 2004 Mr David Crothers, Mr Billy Graham and Mr Jerome Burns

Mr Crothers: The budgetary pressures have very Q144 Mr Bailey: I believe so. There is still an issue considerable impact on the supply of new dwellings, around, shall we say, the lower building and labour as Billy has already mentioned. In the incoming costs in Northern Ireland. Is that reflected in the year, 2004–05, we have had to reduce our target to evaluation? 1,300 based on the money that is available to us. Mr Crothers: Yes, that was reflected in the Needless to say, we will be bidding for additional evaluation. As I indicated, the conclusion that they funds to try and uplift that to at least 1,500 and, came to was that when like with like was compared, depending on the outworking of the review of the including the impact of fixed costs, there was no Net Stock Model, perhaps even further. The impact major cause for concern. of that has very dramatic bearing on our ability to deliver the programme. As to the value in ring- Q145 Mr Bailey: What opportunities exist for fencing some of the funding, I guess that is a double- private finance to contribute to addressing the need edged sword from the point of view of rental income, for social housing? for example. With a buoyant house sales policy the Mr Crothers: Housing Associations lever in private Housing Executive’s rental income is reducing and finance. We need to be careful to ensure that the level as often as not in the year bids have been put in to of grant we provide does not push up Housing compensate the Housing Executive for loss of rental Association rents. That is something that we have income. On the other side of that the house sales then been particularly mindful of. The position in generate considerable capital receipts. The Housing Northern Ireland is that there is not a great deal of Executive is allowed to retain those receipts up to its diVerence between Housing Executive rents and planning figure but anything over and above that is Housing Associations rents, and that has been a then returned to Treasury but, having been returned, deliberate policy. As you will be aware, there has it is still within the gift of the Housing Executive to been a problem in England which they are now bid against that money. Given that there are other trying to resolve. We wanted to avoid that situation competing demands from health, from education, so, that said, the opportunity for levering in more from transport, from other services, the government private finance to the social Housing programme has taken the view that anything over and above the would be limited. The one area that we have not planning figure should be returned to the centre. explored in too much detail, although it is one that we are looking at now, is supported housing. It receives grant aid to diVerent levels and it may well Q142 Mr Bailey: Can I seek further explanation? On be that there is an opportunity there to look at the basis of what you have said I presume that the levering in more private finance. Having said that, capital receipts from sales are in excess of the we have been singularly successful with our Housing Housing planning figure. Is that correct? Associations on the programme so far with £228 Mr Graham: Often considerably in excess. million of private finance and, say, 4,000 homes built at no cost to the public purse. Q143 Mr Bailey: When did the Department initiate Q146 Mr Bailey: Has the Department approached the detailed review of the cost of the new provision of the Strategic Investment Board for advice or social Housing that was recommended by the 2002 assistance in relation to investment in social Needs & EVectiveness evaluation? housing? Mr Graham: We review our social Housing costs Mr Crothers: The Department has met with the twice a year. That was probably reflected in that Strategic Investment Board and discussed various report, that we were mentioning that we were trying options but the conclusion we came to was that we to make those reviews more accurate, and we have have got it about right. managed to do that. We have had two reviews since that report was produced. Just to give you an Q147 Mr Hepburn: Do you have any concerns about indication, our allowances to Associations will be the house sales scheme? rising by 8% from 1 April. That is to reflect the rising Mr Burns: There are two schools of thought about costs that have been hitting us in terms of land and the house sales scheme. The first is that it gives labour costs, so we are getting an uplift in costs of 8% people an opportunity to purchase their homes as against the uplift by the Treasury. That is coming which they would not normally be able to do. It back to your original point about how the helps to create sustainable communities by having programme is being squeezed by the costs. Yes, we mixed tenure on Housing estates and indeed it has are initiating the reviews. We are doing them twice made a major contribution in this regard. The sale of a year. ex-Housing Executive houses oVers a stock of Mr Crothers: There were in addition two separate aVordable Housing to facilitate first time buyers to reviews carried out following the DTZ Pieda report. become home owners as well, so there are added The local government auditor carried out the benefits on that side. On the opposite side people specific review of costs which eVectively gave us a would argue that it depletes the stock of social clean bill of health. Unit costs were also reviewed Housing and therefore makes it diYcult to meet and again it was concluded that the unit costs, when demand for housing. There are concerns expressed analysed and compared with comparable English by some that discount levels here are higher than costs, can be justified and still seem to be oVering those which operate in other parts of Great Britain reasonable value for money. and there are some concerns expressed that some Ev 76 Northern Ireland Affairs Committee: Evidence

30 March 2004 Mr David Crothers, Mr Billy Graham and Mr Jerome Burns social houses upon resale are ending up in the private issue of concern for us but it is an issue we would like rented sector, so there are pluses and minuses. We a bit more information on and to that extent we have are aware that there is perhaps a need to modernise now commissioned the Housing Executive to carry the scheme to take account of these issues and ensure out another piece of research on Co-ownership and that it continues to meet its major objectives of that research will look at Co-ownership participants enabling people to become home owners and themselves, interview them and ask them, “What contributing to sustainable communities. would have happened if you had not got a home through Co-ownership? Where would you have Q148 Mr Hepburn: What would be the implications gone?”, so that will give us more of an evidence base for the Housing Executive if house sales continue, to determine what impact it is having on waiting particularly in its role in community development lists. The last thing we would want would be to and dealing with anti-social behaviour? encourage people on to the social Housing waiting Mr Burns: The Housing Executive is a major player lists just to support the Co-ownership scheme. We as regards community development and whilst many would not want to do anything which would cause a of its homes have been sold it continues to encourage skewing of the waiting lists. the establishment of community groups through its own tenants’ participation groups, so we do not Q151 Chairman: Those that want to take advantage think it would be in any way diminished by the of Co-ownership and those involved in Co- continuation of the house sales scheme. ownership schemes would welcome the Mr Crothers: It still has a very significant role to play Department’s bid to eVectively double the base line and as it loses one side of its organisation it seems to funding for Co-ownership but that bid will have to take on others. For example, in recent times it has be based on something other than a general view that taken on the Home Energy Conservation Authority Co-ownership is a good idea. There is a concern that role in Northern Ireland. It has a major role to play the research that is being undertaken at the moment, in Supporting People. It has a major research which may give us the answers, may come after the capacity which it provides for the Department and time when the bid has been submitted. Do you have others on the Housing scene. It is still responsible for any comments on that? administering Housing benefit and paying grants to Mr Burns: The two research reports that have various organisations and to individuals and, as already been carried out demonstrate that Co- Jerome has mentioned, community development as ownership does oVer good value for money. We well as urban regeneration. We do not see any have forwarded them to the Department of Finance diminution in the role of the Housing Executive. and Personnel to support bids for additional funding for Co-ownership. The Department of Finance and Q149 Chairman: Yesterday we had a very impressive Personnel’s economists have had a look at the set of witnesses looking at Co-ownership of housing. reports and have asked some additional questions You have recently undertaken to research projects which we have just responded to and they are now commissioned by the Department in relation to the considering these. We would anticipate that these Co-ownership scheme. What conclusions have you reports, plus the additional information that the reached from those two research projects? Housing Executive is going to prepare for us, will Mr Crothers: The overall conclusion is that the Co- assist us in our bids for funding for Co-ownership. ownership scheme represents very good value for money. It provides an important niche in the Housing market and we as a Department are Q152 Chairman: Overall home ownership is now anxious to see it continue and, indeed, even its role around 70% in Northern Ireland. Is there an ideal enhanced subject to the availability of funding. figure? Is there a figure beyond which you would accept that there is not a need for schemes such as Y Co-ownership? Q150 Chairman: It is very di cult to measure how Mr Burns: No, I do not think it would be right to those who take advantage of the Co-ownership determine that this is the figure we want to achieve scheme impact on the social Housing sector and on and then once this has been achieved we sit back. It waiting lists. What would the Department’s view be is in everybody’s interest to try and encourage home in this whole area of confusion as to who participates ownership because it gives people a stake in the local in Co-ownership Housing schemes? Are they people community and it gives them an amount of social who would normally buy? Are they people who are capital that they would not necessarily have had unable to buy? Are they people on the waiting list? otherwise. Within our mission statement we want Mr Burns: The average income of Co-ownership everybody to have a home in the tenure of their participants is about £13,500 per annum, so with choice, so we certainly would not want to limit home that type of income it would not enable you to ownership just because we had set aside a certain purchase a house through any other means except target for it. through Co-ownership. Whilst there is no evidence at this stage to determine where people would go if the Co-ownership scheme was not there, it is clear Q153 Reverend Smyth: Are any of the options put that with average incomes at that level conventional forward by the Low Cost Home Ownership Task home ownership would not be an option. They Force likely to have an impact in Northern Ireland would have to go on to the social Housing waiting or to be useful in dealing with the problems in lists or enter the private rented sector. That is not an Northern Ireland? Northern Ireland Affairs Committee: Evidence Ev 77

30 March 2004 Mr David Crothers, Mr Billy Graham and Mr Jerome Burns

Mr Burns: The Home Ownership Task Force has Mr Crothers: As far as the planning is concerned one made a number of recommendations. Some of those of the issues was certainly the delay in securing complement the Barker report and are aimed at planning permission. That was addressed by setting streamlining the planning system to enable the up a formalised structure whereby we met with and delivery of more aVordable Housing and we would meet with on a regular basis our colleagues in the certainly welcome that. Interestingly enough, the Planning Service. That has been responsible for a Home Ownership Task Force report also considerable improvement in the understanding of recommended a simplifying of the various options the problems which fall both to Housing available for low cost home ownership and indeed Associations and indeed to the Planning Service that very much backs up the view we have here, that itself. It has helped speed up the process. It has also we have one mechanism for low cost home enabled us to ensure that staV within Housing ownership. That is the Co-ownership scheme. It is a Associations are properly trained and understand well respected scheme. Lenders are very aware of it the planning process and what is required of them, and the Council of Mortgage Lenders would argue and indeed once they apply for planning permission that it is the fact that there is just the one scheme in all the relevant information is presented at the Northern Ireland that has helped it to be such a appropriate time. On your second point, escalating success. land prices, that is certainly a diYculty, particularly in and around Belfast where most of our Housing need is. We are not building on greenfield sites; we Q154 Reverend Smyth: Is there anything in the are building on brownfield sites. Our record there Barker report which was published earlier this has been quite impressive. Over 65% overall is on month that would strengthen or challenge that? brownfield sites, but it does mean that it is extremely Mr Burns: The Barker report is based more on the diYcult to acquire sites in hot spots, particularly in English situation and is making recommendations north and west Belfast. When we do go in as often as to try and deal with the boom/bust scenario that not we may be competing with the private sector. exists as regards house prices in England. It is That raises a question about vesting but the decision basically recommending that there should be an there is that we will not vest if the developer is immediate increase in the supply of homes proposing to put Housing on the site regardless of throughout England and particularly in the south whether it is social Housing or private housing. east of England. We are obviously quite interested in that but in many respects the issue of Housing supply and what figures there should be is outside our hands. It is a matter for the Department for Regional Development and its regional strategic Q158 Mr Bailey: On that issue do you think more framework. use could be made of your land vesting powers? Mr Crothers: Except that we will not vest land if it is Q155 Reverend Smyth: Is there a place for trying to going to be used for housing. If a developer comes pull them together? Speaking on behalf of south along and says, “You are proposing to vest my land. Belfast for over 20 years, we have been waiting for I am proposing to build Housing on it”, the legal the development of the blackstaV area which has view would be that you cannot then vest that land. seen numbers go down from 5,000 to about 1,500 and a lot of dereliction around the place. Mr Burns: The Department for Regional Development, as I said earlier, is responsible for the Q159 Mr Bailey: So it is a legal issue, you think? issue of meeting Housing demand right across Mr Crothers: Essentially a legal issue. Northern Ireland. We are working quite closely with Mr Burns: And a human rights issue because the them, as is the Housing Executive, to try and V land owner has a human right to try and get the best determine how much social Housing and a ordable price that he can for his asset. Remember that Housing should be provided in each specific area. vesting is a very draconian measure and more times That issue will probably be one that will be than not when we attempt to vest land we end up in considered as part of the Belfast metropolitan area public inquiries. Originally public inquiries into plan which is currently being prepared. vesting were small localised aVairs. They are now big aVairs with barristers on both sides and it is almost Q156 Reverend Smyth: We live in hope. a courtroom drama every time you carry out a public Mr Burns: We do. inquiry into a proposed vesting order. The issue of escalating land prices, and particularly land prices for social housing, is one that is being addressed by Q157 Mr Bailey: Earlier you said that you had the Department for Regional Development in its addressed some of the issues that had obstructed the deliberations into the planning policy statement PPS number of Housing starts over the previous few 12. Both ourselves and the Housing Executive are years. What problems did you have in identifying working very closely with the Department for those elements of the planning process which have Regional Development and the Department for the impeded delivery and what potential solutions do Environment who will have responsibility for you think exist for dealing with the problem of identifying sites for social Housing as and when PPS escalating land prices? 12 rolls out. Ev 78 Northern Ireland Affairs Committee: Evidence

30 March 2004 Mr David Crothers, Mr Billy Graham and Mr Jerome Burns

Q160 Mr Bailey: To a certain extent you have inconsistencies right across the entire private rented anticipated a couple of my questions. How do you sector are an issue of major concern for us and it is think the Belfast City Regeneration Strategy for that reason that we carried out a major review of constrains potential development of new build the private rented sector legislation last year. We are social housing? now in the process of introducing new legislation Mr Crothers: The regeneration policy framework which will aim to improve conditions n the private includes a master plan for part of the city centre. rented sector and bring us to a situation where This is vitally important in terms of taking forward government intervention in the sector in terms of the future development of the city centre, so it is rent control will be determined by fitness and not as important that the Department gets this right and exists at the moment where government intervention that a strategic view is taken of the future needs of is determined by the status of the property in 1978. the city centre. In that context, whilst it may take a Running alongside this is the Housing Executive few months for the report to be prepared and strategy for the private rented sector. It is looking at considered, there may be a short term delay in taking the sector as a whole as well to see how, in areas of forward some of the schemes that would fall within particular Housing stress, the sector might be used the area but hopefully that delay will not be overly to complement the stock of social housing. long.

Q161 Mr Bailey: You do not think that it will reduce the potential sites available for social housing? Q163 Mr McGrady: Has this proposed legislation Mr Crothers: It depends on what is perceived to be been published for consultation yet? the strategic needs of the city of Belfast. In that Mr Burns: No. The document on which the context they will look at all options—the need for legislation was based, that is, the policy document, social housing, the need for private sector housing, was subject to extensive consultation and the the need for business and industry. legislation will be published as well as soon as it is drawn up. We are in the process of writing the Q162 Mr McGrady: I would like to dwell on instructions for the legislative draftsman. something in respect of quality standards, referring to the social and low income private sector. Is the Department content with the current level of unfitness in that sector and have you any intention of introducing a decent homes standard in that social Q164 Mr McGrady: Like the Decent Homes private sector of housing? It has been done in Standard, should the Lifetime Homes Standard, England and Wales and I think they are presently which applies to social housing, be extended to the considering it in Scotland, so what is the private sector? In general terms, as it is desirable to Department’s attitude to both the existing unfitness apply decent standards right across the board what and the means of dealing with it? eVect do you think that would have on the Mr Crothers: I am sure Jerome will wish to comment aVordability of low cost housing? on this but I can say that as far as we are concerned Mr Crothers: The Lifetime Homes Standard applies as a Department no level of unfitness is acceptable. to all new build social Housing and we would We would like to see it eradicated. The private sector certainly wish to see it extended to the private sector. is where the highest level of unfitness is. The social Indeed, at a recent conference on that very issue we stock is generally in very good condition and the had representatives from the private sector and we level of unfitness there is quite low. were encouraging them to go down that route. Mr Burns: As regards decent homes, we have been Obviously, for various reasons, they would not wish looking at the Decent Homes Standard, and indeed to see some kind of prescription or regulation the Housing Executive in the 2001 House Condition requiring them to provide homes to the Lifetime Survey monitored against the Decent Homes Homes Standard despite the fact that the best cost Standard. The Housing Executive is currently estimates that we can get would indicate that it finalising its maintenance strategy for the next ranges from £165 to £545. That is all it would cost in number of years and its maintenance strategy aims a new build house to provide it to Lifetime Homes to bring all its properties up to the Decent Homes Standard. There is an issue in Northern Ireland in Standard. We have been in consultation with the that there are numerous builders and I think there is Northern Ireland Federation of Housing an education process to be gone through both for the Associations to see what impact the Decent Homes building industry and indeed the general public, and Standard would have on their members stock and perhaps as a first step that is something that can be they are of the opinion that they will be able to meet stepped up to make people more aware of the it as well. We may have to look at some funding benefits of building to Lifetime Homes Standard and issues for the Housing Association movement but by for the building industry to achieve those standards. and large whilst we have not publicly implemented We will also then be encouraging our colleagues in the Decent Homes Standard we are working the Department of Finance and Personnel who are towards that and we are expecting to make an responsible for the Building Regulations when the announcement in that regard very shortly. As review takes place of those regulations next year to regards private sector Housing and in particular the factor in a requirement to build to the Lifetime private rented sector, that is an issue of concern. The Homes Standard. Northern Ireland Affairs Committee: Evidence Ev 79

30 March 2004 Mr David Crothers, Mr Billy Graham and Mr Jerome Burns

Q165 Mr Hepburn: Could you tell us some of your demand whereas Protestant Housing need concerns surrounding Housing benefit, in particular manifested itself in the form of a need for house and the increasing costs in the private sector, possible area rehabilitation and modernisation. Given that abuse by private landlords and the eVects that this the Department has responsibility for policy could have on social Housing provision? formation across the whole of those two Mr Crothers: This is an area in which there is communities how do you factor diVering certainly a lot of talk but I am not sure that there is community needs into your policy formation? hard evidence to support some of the assertions that Mr Crothers: I can only surmise that that report have been made about Housing benefit. It is a cause refers to a specific area where there is a specific for concern but if we look at the reasons why problem, namely north Belfast, where yes, there is a Housing benefit expenditure has increased over the crying need for more Catholic housing, whereas on last five years, increasing rents are by far and away the Protestant side the need is for improvement to the largest factor. Private sector rents went up by the condition of the Housing stock. The issues about 10% and social sector rents went up by 20%. north Belfast are being developed in the context of Increasing rates also contribute and more private, the North Belfast Housing Strategy which sets out less social, renting. There is also the impact of quite clearly what the demands are for new build, transitional Housing benefit when we were what the demands are for grant and how the strategy preparing for the move towards supporting people. is to be taken forward over a seven-year period. All Private rents are market led but the Housing the key players are involved, both at community Executive has developed a scheme of local reference level and at Housing Association and Housing rents which eVectively curtails the limits that can be Executive level, and that strategy is, as I say, being achieved both in terms of the rent and the amount of taken forward and developed. benefit that can be given as a result in particular Chairman: Gentlemen, time has beaten us, I am locations. There are obviously concerns about the afraid. We are very grateful for the evidence you rising cost of Housing benefit. It is an issue that is have given. If there is any additional evidence that continually looked at and assessed and revisited. you wish to put before the committee we would welcome it, particularly if there are questions we Q166 Chairman: Finally, on an overarching theme have not asked you which you thought we should. If of equality, the University of Ulster in its report you would be kind enough to give us the answers came up with the notion of Catholic Housing need that would be very welcome. On behalf of the and Protestant Housing need in which it said that committee can I thank you for taking the time this Catholic Housing need manifested itself in high morning to be with us. It has been very helpful.

Supplementary memorandum submitted by the Department for Social Development I thought I should write to you because I am a little concerned there may be some confusion about the figure for future social housing need in Northern Ireland. A Net Stock Model (NSM) was developed by the University of Ulster in 1994 based on demographic trends. This initially predicted an annual new build social housing requirement of 2,600. Since then, however, the figure has been revised downward to its current level of 1,500 because of migration patterns, population projections and higher private sector new build. The Model was recently reviewed by the University of Ulster, Cambridge University and Queens University of Belfast. The outcome of that review confirmed a continuing requirement of 1,500 a year including an allowance for backlog and mismatch. During the course of the Committees’ evidence gathering reference has been made to a requirement of 1,750 a year. I wish to make it clear that this is the Housing Executive’s figure and has not been confirmed or accepted by the Department. The current position is that we have asked the Housing Executive to explain how they have arrived at this figure and a response is awaited from them. 6 May 2004 Ev 80 Northern Ireland Affairs Committee: Evidence

Tuesday 27 April 2004

Members present:

Mr Tony Clarke, in the Chair

Mr Adrian Bailey Mr Stephen Pound Mr Stephen Hepburn The Reverend Martin Smyth Mr Iain Luke Mark Tami

Memorandum submitted by the Northern Ireland Housing Executive 1. Introduction 1.1 The Committee has invited written submissions to its Housing Inquiry within the Terms of Reference set out in its letter of 6 February 2004. 1.2 The Northern Ireland Housing Executive (NIHE) is aware of the intention of the Department for Social Development (DSD) to provide the Committee with a comprehensive context statement including roles, responsibilities and relationships. 1.3 NIHE has therefore concentrated on key trends, issues and approaches relating to the three strands in the Committee’s Inquiry. 1.4 The submission covers: — Summary of NIHE views. — Demand for Social Housing. — Supply of Social Housing. — Quality of Housing. — Annex 1 : The Programme for Government Connections between housing and other objectives. — Annex 2 : NIHE Partnerships.

2. Summary The Northern Ireland Housing Executive has set out the main trends, issues and approaches against the three strands in the Committee’s Inquiry. The Northern Ireland Housing Executive has sought to highlight five key issues: — Ensuring an adequate supply of land for aVordable housing; — Ensuring the social new build programme reflects the scale and nature of projected housing need; — Ensuring the delivery of the social new build programme; — Ensuring opportunities presented by the growth in private renting are used to address housing stress; and — Ensuring housing investment achieves improvements in the quality of housing and addresses wider objectives in the Programme for Government. NIHE has set out a summary of its main views on these issues under: — Planning Policy/Systems; — Supply Systems; and — Improving Quality. 2.1 Planning Policy/Systems — The outworkings of PPS12 (currently at draft stage) is critical in sustaining the supply of land for aVordable housing — The proposed NIHE role as technical advisor to the Planning Service with responsibility for Local Housing Needs Assessments (which will accompany Development Plans) will provide: — Independence in analysis and views; — Sensitivity to local market needs; and — Objectivity at a strategic and local level. — Strategic planning models and local needs assessment methods (including latent demand testing) have identified housing requirements; and the mid-term review of the Regional Development Strategy aVords the opportunity to influence future production targets for aVordable housing. Northern Ireland Affairs Committee: Evidence Ev 81

— NIHE believes progress towards higher density development, particularly small units, will accelerate based on existing plans; and in conjunction with Housing Associations, NIHE will continue to promote such developments within local communities. — Modernisation of the Planning Service in Northern Ireland is welcomed as a means to reduce timescales particularly in development control.

2.2 Supply Systems — NIHE believes the structure of the housebuilding industry is well matched to local market requirements although there are issues around the future skills base of the industry. — NIHE believes the delivery of the social new build programme is essential to reduce housing need; and NIHE will continue and enhance its support role to housing associations through its land identification role, strategic acquisitions, land release and potentially as a procurement partner. — NIHE believes partnering with specific housing associations in strategic locations has the potential to accelerate development. — NIHE believes the review of aspects of the House Sales scheme being undertaken by the Department for Social Development is timely. — NIHE will continue to develop methods to use private renting to address housing stress; and will track the eVects of the proposed Property Investment Funds.

2.3 Improving Quality — Investment patterns to provide better quality housing and neighbourhoods continue to change to reflect changes in conditions and priorities. — Studies, commissioned by NIHE and DSD into strategic options and maintenance investment are at draft stage and take account of alternative delivery models and diVerent levels of housing standards. — Strategic targeting of assistance to rural areas and housing in multiple occupation is being implemented. — Urban renewal programmes continue to be advanced to address poor living conditions and market failure. — Fuel poverty, across tenures, is considered a priority and is being addressed in particular through fuel switching. — Investment levels to improve accessibility for elderly and disabled people remain high to match the level of demand. — Housing investment programmes have strong links to other objectives in the Programme for Government.

3. Demand for Social Housing

Background

3.1 Spatial and structural change in the social housing market has been ongoing. This reflects the demographic forces which have been driving the housing market generally including household growth, reductions in household size and social trends. These and other factors are, however, having a diVerential impact across Northern Ireland. 3.2 DiVerent characteristics and dynamics are evident as social housing demand is segmented into sub- markets. 3.3 In particular— (a) the overall increase in demand comparing 1993 to 2003 (13% in total waiting list; 26% in housing stress) masks increasing rates of transitory applications; higher levels of applicants satisfactorily housed or with minimum need; and the impact of a common selection scheme. (b) Housing stress is no longer dominated by housing conditions but rather social factors (illustrated by a three fold increase in single homeless, related primarily to relationship breakdown). (c) The rate of household fragmentation through divorce/separation is stabilising and remarriage rates are rising. However, the number of younger single people in housing need is on the increase. Ev 82 Northern Ireland Affairs Committee: Evidence

(d) Distinctive geographic and household structure patterns have emerged: — Clear east/west divide with housing stress heavily concentrated in the urban east and Derry City; and pockets of rural demand in the west. — Within the urban east intense housing demand exists, although in diVerent forms: with North and West Belfast driven by family demand and a youthful population structure to sustain such demand; in South Belfast driven by single demand and higher levels of neutral space (in the religious sense); in East Belfast through a mix of elderly/single demand; and in Lisburn through a mix of single and family demand. — Family demand is increasingly dominated by lone parents signalling a likely long term propensity to need social housing and raising issues around the concentration of deprived households in new developments. — Low mobility rates characterise most sub-markets and are reinforced by segregation. Patterns of economic growth and changes in household type could change this but such change is likely to be slow. — Housing stress is most acute in North and West Belfast, West Derry/Londonderry and East Belfast. (e) Demand for supported housing has switched from the elderly to other vulnerable groups and while the scale is small it represents a priority in health, social and resource terms. (f) Elderly people on average wait twice as long (on the waiting list) as other households reflecting the strength of locational preferences and supply issues.

Issues/Approaches

3.4 The forms of NIHE market research and analysis to support strategic planning for the social sector recognise its interaction with the rest of the market particularly in respect of aVordability, house-builder behaviour and economic and social trends. 3.5 Macro planning for social housing in Northern Ireland uses a methodology developed by the University of Ulster and University of Cambridge. Future requirements (1,750 units per annum) incorporate under delivery against targets in previous years. 3.6 Strategic social new build investment requirements are agreed annually between NIHE and the Department for Social Development to reflect the relative priorities of urban renewal, general needs, supported housing and rural need. 3.7 Housing mix is determined by NIHE in conjunction with Housing Associations on a scheme by scheme basis and may, dependent on location, require consultation with local residents. (Resistance to higher density developments remains strong but is eroding through examples of good design). 3.8 The NIHE strategic planning model is supplemented by its: — Annual District Housing Plans which identify social housing requirements at a local level together with regeneration requirements. — Sectoral studies and strategies for specific sub-markets which incorporate analysis of mobility patterns (particularly arising from private sector new build) for example, North Belfast and Greater Shankill. — “Supporting People” needs analysis undertaken by commissioning bodies including housing, health and social services oYcials.

3.9 An emerging issue of aVordability was identified through research carried out by NIHE. NIHE in conjunction with other stakeholders is developing a methodology to measure aVordability at District Council level which it intends to deploy as part of its “Technical Advisor” role to the Planning Service proposed under PPS12 (Housing in Settlements). 3.10 NIHE also undertakes applied research to understand better the reasons for changes in the scale and structure of social housing demand. In particular, the increase in single homelessness is primarily accountable for continuing levels of housing stress. Investigation into this issue has focussed on its scale and distribution and characteristics of the “long term” homeless. It is being extended into its relationship with the social security system, “repeat” demand, and the extent to which some temporary accommodation operates as permanent housing. 3.11 The changing nature of demand presents challenges for the management of the social housing stock. Design, tenure integration and intensive management arrangements assist in meeting these challenges. Northern Ireland Affairs Committee: Evidence Ev 83

3.12 In brief— — Strategic planning models and local housing market assessments continue to be refined to reflect changes in demand and associated house price and supply issues. — The market intelligence and “Technical Advisor” roles undertaken by NIHE (in liaison with the Department for Social Development) are strengthened by NIHE’s local operational presence. — Applied research particularly around applicant behaviour (including homelessness) aVordability, and mobility will continue to be undertaken.

4. Supply of Social Housing

Background 4.1 The Northern Ireland economy has until recently had a diVerent pattern of growth to other regions which created diVerent tenure trends. The sale of social housing made a significant contribution to changing the pattern to favour owner-occupation. 4.2 Measuring the impact of the decline in social housing covers: — establishing the existing and projected relet rate; — any changes to alternative sources of supply; and — the nature of the loss of supply through house sales. 4.3 In particular: (a) Delivery of the social new build programme has been problematic in recent years. (b) Over 100k social rented properties have been sold. These have been primarily houses. This reflects house sale policy restrictions and a lower propensity to purchase flatted accommodation. (c) Despite house sales, the relet rate of social housing has stabilised, at around 8,000 per annum. (d) The turnover rate of social housing relative to supply has been growing. This reflects the profile of stock (higher percentage of small units) and the profile of demand (higher percentage of small households). Single people receive a higher share of allocations relative to their share of demand. (e) The resale of former NIHE properties has been low at 22% and less than 10% of properties sold have been “recycled” for private renting. (f) These patterns are likely to change with turnover reaching an optimum level; “flat” sales are likely to rise to reflect their relative value-for-money; and re-sale, driven by generational change, producing higher rates of re-cycling into rental. (g) Vacant stock in the social sector is primarily related to urban clearance, interface areas, unpopular building forms and areas of oversupply, arising from new town and growth centre developments. (h) Co-ownership has operated as a cost eYcient bridge between tenures for lower cost housing. (i) The aVordable private renting market (measured by receipt of housing benefit) has been growing at the rate of 2,000 units per annum since 1999. This growth has been primarily in areas with lower social housing demand. (j) The growth in the private rented sector is sometimes operating as complementary supply but more so as competing supply. These growth trends are being driven by small investors and house- builders seeking to main output levels by using private renting to “soak up” excess supply. (k) Given that rental yields are not excessive the trend in private renting has been mainly supported by high capital appreciation. (l) The future pattern of “buy-to-let” and “build-to-let” is uncertain given the variety of financial, market and behavioural factors at work. More importantly given its reliance on housing benefit the private rented market may struggle to make a greater impact in higher demand areas, except at the expense of low cost owner-occupation, or through raising housing benefit levels. The introduction of Property Investment Funds could become a significant supply driver. (m) Sustained private new build rates (10–11k per annum) conceal upward trends in second homes and the private renting growth (including student demand) mentioned earlier; and house price inflation with reductions in access to the market for first time buyers. (n) The structure of the housebuilding industry has changed to match market conditions and reflects its high level of local knowledge—low cost, inner city, brownfield, apartment and suburban greenfield specialists have targeted market segments and localities. (o) The geographical supply patterns show sustained growth in the main transport corridors and fluctuations in Belfast (reflecting a temporary over supply in the apartment market). Ev 84 Northern Ireland Affairs Committee: Evidence

Issues/Approaches 4.4 NIHE views the outworkings of PPS12 (currently at draft stage) as critical in the medium term to the supply of aVordable housing. While the Regional Development Strategy is planning-led and seeks to spatially direct housing growth NIHE sees its Local Housing Needs Assessment as demand driven and responsive to local market signals. 4.5 NIHE sees itself as providing a challenge and advocacy role for Development Plans; and seeks to ensure land release matches local need. This accepts that the Development Plan must take account of competing land uses and environmental considerations. 4.6 In addition NIHE considers that reductions in time-scales for the Development Plan and Control processes are essential to sustaining supply particularly on more diYcult sites. 4.7 The mid-term review of the Regional Development Strategy oVers an opportunity to influence provision for aVordable housing and in particular discount the impact of second homes and investor markets. 4.8 Continued and enhanced support will be provided by NIHE to the housing associations in the delivery of the social new build programme. While NIHE is confined to direct acquisition in strategic locations or where land assembly is problematic its land identification role is being extended. Currently this is focussed on its undeveloped land portfolio to ensure existing low cost opportunities, particularly in or adjacent to social housing areas, are maximised. The gradual shift towards increasing the supply of small as opposed to family housing through the social new build programme will continue. Larger, high density schemes for single people are planned. 4.9 Mixed tenure models of provision have been successfully implemented by NIHE and Housing Associations. Further opportunities to apply such schemes will be created. In strategic locations NIHE takes the view that partnering with specific housing associations could accelerate development. In addition some developers have expressed interest in constructing social schemes with grant aid. 4.10 Access to private renting for social applicants in housing stress is being developed through partnership arrangements with the voluntary sector (“Smartmove”). These schemes will be evaluated as a potential alternative source of supply for homeless applicants although it is acknowledged this re-directs rather than increases supply. 4.11 On a separate but related issue the relationship between housing benefit levels and expansion of private renting is being researched further particularly in the context of a move towards Standard Local Housing Allowance and the introduction of Property Investment Funds. 4.12 While the sale of social housing has assisted in stabilising estates NIHE accepts that the long term implications require the current scheme to be reviewed. NIHE believes that the Department for Social Development’s review of aspects of the scheme is timely. 4.13 In brief— — NIHE views the outworkings of PPS12 as critical in the medium term to a sustained supply of aVordable housing. — NIHE (as Technical Advisor) sees its role as advocate and challenger to Development Plans to ensure land release meets local needs. — NIHE will provide additional support to housing associations in the delivery of the social new build programme through an enhanced land identification role (including opportunities for mixed tenure development). — NIHE believes that the Department for Social Development’s review of aspects of the scheme is timely. 5. Quality of Housing

Background 5.1 Housing quality indicators in Northern Ireland while primarily built around statutory unfitness and disrepair measures have also taken account of market failure, decent homes standards (adopted in other Regions) and accessibility standards. Other indicators are used to reflect the connections with other Government priorities including health, safety and fuel poverty. 5.2 A general improvement in housing quality has been and continues to be achieved. This has been confirmed by an independent study into the eVectiveness of past expenditure. As the patterns of need change investment targets are also changing. 5.3 In particular— (a) Unfitness levels have reduced to 4.9% primarily through urban renewal and renovation grants although rural unfitness remains high. (b) Urban renewal (in contrast to other regions) has been maintained. Intervention programmes in failing markets based on rehabilitation/improvement to private stock were in the most part abandoned in the late 1980s. Northern Ireland Affairs Committee: Evidence Ev 85

(c) While in absolute terms the greatest number of properties unfit or in disrepair are in the owner- occupied sector in relative terms the problem is most acute in the private rented sector. (d) Houses in multiple occupation raise issues around physical conditions, health and safety and management. (e) Properties failing to meet the “decent home standard” (as adopted in England) vary by tenure from 23% owner-occupied, 47% private rented to 49% NIHE stock. (f) The geographical distribution of “non-decent” homes is broadly consistent. (g) The reason for failing the “decent home” standard is also consistent with thermal comfort accounting for 88% (rising to 97% in NIHE stock). (h) Physical accessibility issues related to age and disability have grown in recent years across all tenures.

Issues/Approaches

5.4 In respect of NIHE stock investment requirements and strategic options NIHE jointly commissioned a study with DSD based on the business planning framework and methodology set by ODPM for use by local authorities in England. The 30 year projection includes the costs of strategic and management functions. The study is currently under consideration by the Department for Social Development. 5.5 In addition NIHE has undertaken a study of its future Maintenance Investment Strategy based around decent homes standards, health and safety rating standards and a housing quality standard which includes accessibility and environmental considerations. This study is currently with the Department for Social Development for consideration. 5.6 Within the private sector strategic targeting of assistance for rural areas and Houses in Multiple Occupation is being implemented. The new discretionary renovation grants regime has aVorded better opportunities to eVect targeting and is complemented by replacement grants in rural areas (a policy specific to Northern Ireland). 5.7 Urban renewal programmes continue to be pursued within Belfast to address poor housing conditions and market failure. These programmes are advanced in the first instance through Housing Market Profiles to ensure the market is not disrupted during the period of investigation. NIHE is aware of the changing tenure structure of some older markets as they go through a cycle of private renting to owner- occupation and back to private renting. While NIHE acknowledges that this is fundamentally changing the social fabric of those areas, it is nevertheless sustaining the area housing market. 5.8 Neighbourhood renewal programmes align closely to areas identified through the Department for Social Development’s strategies for Belfast, Derry/Londonderry, and regional towns/cities. In addition NIHE has identified other areas “at risk” and has targeted investment programmes to improve living conditions. 5.9 While the Department for Social Development’s Fuel Poverty Strategy is at draft stage a range of policies and additional investment have been put into place in recognition of its importance. Fuel switching (from coal to oil/gas) was introduced in 2000; a strategy for switching NIHE stock was simultaneously introduced and in the private sector the Warm Homes scheme targets fuel switching for elderly households. 5.10 Accessibility for the elderly and disabled has emerged in recent years as a significant issue in both sectors. Investment levels through public sector adaptation works and Disabled Facilities Grants have risen to match the need. 5.11 NIHE investment programmes in the quality of housing and neighbourhoods have strong linkages to other objectives set out in the Programme for Government. A summary of the linked programmes are set out in Annex 1. 5.12 In brief— — Investment patterns to eVect better quality housing and neighbour-hoods continue to change to reflect changes in conditions and priorities. — Strategic studies into the management/ownership options and maintenance investment for social housing are at draft stage. — Rural housing, houses in multiple occupation, urban renewal, neighbourhood renewal, disabled adaptations and fuel poverty have been set as priorities with strategies and investment programmes in place. — Programmes have strong linkages to other objectives in the Programme for Government. Ev 86 Northern Ireland Affairs Committee: Evidence

Annex 1

PROGRAMME FOR GOVERNMENT—CONNECTIONS BETWEEN HOUSING AND OTHER OBJECTIVES

1. Housing and Health 1.1 The Housing Executive’s “Housing and Health–A Shared Agenda” sets down the contribution of housing to secure better health and well-being. 1.2 Principles and processes for planning, commissioning and partnering were developed as part of the agenda. Health Action Zones, Health Improvement Programmes and Healthy Cities provide strong structural links. 1.3 Supporting People came into eVect in Northern Ireland on 1 April 2003. The programme brings together the previous funding streams for housing support services and aims to improve the planning development delivery of these services to vulnerable people, to enable them to live as independently as possible. In managing the Supporting People Fund the Housing Executive has developed a multi-agency approach involving partnership working with the statutory community and voluntary sectors. The budget for Supporting People is £50 million per annum. 1.4 The main programme linkages are— — new build design (most recently resulting in the adoption of lifetime homes standards); — property modernisation programmes; — supported housing development for people with mental health problems, physical disabilities, hearing disabilities and other needs; — adaptations to extend independent living; — case management services to eVect house improvements for elderly/disabled people in the private sector; and — integration of services for homeless people. 1.5 Annual direct investment in the Shared Agenda averages £120 million per annum.

2. Housing and Rural Development 2.1 The Department of Agriculture and Rural Development (DARD) launched its Rural Development Programme in 2001. NIHE’s Rural Housing Strategy complements the programme and structural links between them have been developed. 2.2 The Rural Community Network, Rural Development Council, District Councils and DARD (Rural Development Division) together with NIHE have also targeted specific rural estates for integrated programme delivery. 2.3 Environmental and heritage schemes are also being promoted in conjunction with DARD (Countryside Management). 2.4 Annual direct investment in the housing-related programmes averages £30 million per annum.

3. Energy Conservation/Fuel Poverty 3.1 The Housing Executive is the Home Energy Conservation Authority for the Province and has worked with a range of bodies including the regulator, the supply industry, Government, Energy Advice and the fuel poverty lobby. The Housing Executive has been set a target of making substantial progress towards a 34% improvement in energy eYciency over the 10 year period 1996–2006. By the House Condition Survey 2001 the improvement was measured at 13%, almost twice the average improvement secured elsewhere in the UK.

4. Housing and Community Safety 4.1 The Northern Ireland OYce Community Safety Strategy sets the framework for housing-related programmes aimed at crime reduction, community-based safety schemes and partnership structures. 4.2 This has been translated into a Housing Community Safety Strategy which focuses on— — designing out crime on existing estates including enhanced security for individual properties; — tackling anti-social behaviour through preventative and punitive measures; and — increasing local presence in specific neighbourhoods through a neighbourhood warden service. 4.3 Annual direct investment in the programmes is estimated at £7 million per annum. Northern Ireland Affairs Committee: Evidence Ev 87

5. Housing and Community Capacity 5.1 Developing community capacity is a key objective in the Programme for Government and relates in the most part to social housing neighbourhoods. 5.2 NIHE operates a Housing Community Network which seeks to involve around 400 community groups in policy, programme and service development. 5.3 In addition NIHE, often in conjunction with the Department for Social Development’s regeneration and voluntary activity units, directly supports capacity measures in individual neighbourhoods or sectors. 5.4 Strong links also exist with the voluntary sector particularly in the provision of supporting people, homelessness and energy eYciency services. 5.5 Annual investment in community capacity programmes averages £2 million per annum.

6. Housing and Community Relations 6.1 Given the social and financial costs of segregation, intimidation, and sectarianism NIHE view the Programme for Government’s commitment to better community relations as an objective particularly relevant to housing. 6.2 The Community Relations Unit of OFM/DFM published a consultation document “A Shared Future”. NIHE has welcomed the proposals. 6.3 Specific programmes are undertaken at interface areas to ensure physical conditions do not deteriorate to the extent that they pose a threat to community stability. 6.4 Investment is not specifically directed at the community relations agenda but community capacity and urban/neighbourhood renewal programmes are deemed to support better community relations both within and between communities.

Annex 2

NORTHERN IRELAND HOUSING EXECUTIVE PARTNERSHIPS The Housing Executive has built up an extensive range of Partnerships and has experience in partnership working at Central and local level. The unique Province-wide nature and scale of the organisation facilitates this. Examples of these at Central level include: (a) New Build The Tri Partite Group meets monthly. This group consists of Department for Social Development, Northern Ireland Federation of Housing Associations and Northern Ireland Housing Executive. (b) Local District Councils Housing Council (monthly), Liaison Committee is held in Belfast (monthly and quarterly in Derry), Annual District Housing Plans. (c) Homelessness The Housing Executive has developed a Homelessness Strategy which is being implemented with a Partnership involving the statutory and voluntary sectors. (d) Neighbourhood Renewal The Housing Executive’s Province-wide structure means that it will have key role in the partnerships involved in the implementation of the Strategy. (e) Community Safety The Housing Executive is a key player in the partnership at Central level with Police Service of Northern Ireland, District Councils and others in the Local Community Safety Partnerships. (f) Home Energy Conservation The Housing Executive is the statutory Home Energy Conservation Authority for the Province and has achieved significant improvements in energy eYciency through a partnership consisting of Department for Social Development, OYce of the Regulator, Voluntary Energy Advice sector and District Councils. (g) Housing and Health The Housing Executive has established a Housing and Health Agenda to match with the priorities in this field which has allowed a consistent approach to issues such as adaptations and homelessness to be developed. Ev 88 Northern Ireland Affairs Committee: Evidence

(h) Supporting People This new Government policy is aimed at providing support to vulnerable people. It is the lead Agency in the Commissioning body which also involves Department for Social Development, Department for Health and Social Services & Public Safety and Probation Service. (i) Rural Housing The Housing Executive has developed a Rural Housing Strategy which is being implemented in partnership with Department for Social Development, Rural Development Council, Rural Community Network and District Councils. (j) Common Ground Consortium The Housing Executive is the lead in this Partnership involving Department for Social Development, Department of Agriculture and Regional Development, Northern Ireland Voluntary Trust and Groundwork in the implementation of community based environmental schemes. These Partnerships include a range of Government Agencies and voluntary organisations. Examples at local level include: — Local Strategic Partnerships. — Investing in Health Partnerships. — Community Safety Partnerships. — Health Action Zone Partnerships. — A range of local Regeneration Partnerships. March 2004

Witnesses: Mr Paddy McIntyre, Chief Executive, Mr Stewart Cuddy, Deputy Chief Executive and Director of Corporate Services, and Mr Colm McCaughley, Director of Housing and Regeneration, examined.

Q167 Chairman: Gentlemen, you are very welcome. in the first year that they have been met but we all Perhaps I can take this opportunity to thank the need to continue to keep an eye on that, we all need Executive for its hospitality on our first visit in to continue to play a role. I think the real issue now relation to this inquiry. Our Gurney girls are in the is whether or not there is funding available in the corner, so could I ask you when you first give coming years to support a new build programme of evidence to give your name for the record so they can 1,750 buildings. there on in know who is speaking. If I can start with the questions on new build targets. We are looking to achieve a target of 1,750 new social houses per annum. In your view, are Housing Associations Q168 Chairman: You said we all have a role to play, alone capable of achieving that figure? what is the role that the Housing Executive plays in Mr McIntyre: Paddy McIntyre, Northern Ireland enabling that achievement? Housing Executive. I think it is fair to say for some Mr McIntyre: First of all, we are the overall assessor years there were concerns around the delivery of the of housing need obviously and have put together the new build programme, representations were made programme in conjunction with the Department. by our board, by the housing council, the various Our key role is really around the issue of land political parties and so forth to the Department. The identification and land acquisition. We do that, for Department carried out a review of the problems example, in urban and rural areas through clearance associated with the delivery of the new build and vesting and so forth. We have a land asset programme which were primarily related to the ourselves which forms a significant part of the new identification and the acquisition of land, delays in build programme in terms of land transfer. For planning, general programming matters, and example, in areas of West Belfast where there are produced a report, probably in the early part of last diYculties about individual Housing Associations year. We were party to the production of that report. acquiring individual sites for significant There were a number of recommendations in it developments, we will act as a strategic acquirer. In about how those performance problems should be those ways we make a contribution to this addressed, including new structures for managing programme. We believe, for example, and this is a the programme, a level of over-programming, matter we have been discussing with the advanced land acquisition, clearing up planning Department, that there is probably a larger role we delays and so forth. In the year just completed, the should be playing in land identification. We also new build programme has delivered more or less believe that PPS12, that is the Planning Policy around the target which was set for that year. We Statement on Housing and Settlements, oVers a have always said that we need to keep a watching eye significant role for the Housing Executive in terms of on this but our view at the time the report was influencing both the assessment of what land is produced was that these recommendations oVered required and the allocation of that land to meet the possibility of those targets being met. It appears social housing need and aVordable housing. Northern Ireland Affairs Committee: Evidence Ev 89

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley

Q169 Chairman: In the Belfast District Housing Q173 Chairman: Are there any developers that have Plan you make reference to “bringing forward identified themselves as willing to co-operate within proposals to promote site identification and improve a Northern Ireland context? programme delivery through better programme Mr McIntyre: I think—and my colleague management”. Could you just expand on the Mr McCaughley will add to this—we have been meaning within the plan in relation to those two approached on two or three occasions in the past by issues? developers who have been interested but that has Mr McIntyre: In the context of Belfast or generally? been within the context of no grant aid on oVer. I suspect once grant aid becomes on oVer if that particular initiative applies in Northern Ireland Q170 Chairman: In the context of the Belfast District certainly there will be plenty of developers who will Housing Plan and comments towards bringing be coming through the door of the Department and forward proposals to promote site identification. ourselves. Mr McIntyre: Again, because of the levels of housing need in Belfast we are probably more active in the city than elsewhere in identifying land for Q174 Reverend Smyth: I think you are aware that the housing. Three or four years ago we carried out a Housing Executive is developing a measure of very significant study of land availability in Belfast aVordability at district council areas. What stage is to identify what land might be available within the this development at and what benefits do you context of brown field development and so forth. imagine it will bring in terms of developing housing That is one example of how we do it. We are strategies at the local level? extensively involved in urban renewal which in itself Mr McIntyre: The background to this is that a few brings into play land for social housing which years back, along with the Department and the eventually transfers across to Housing Associations Council for Mortgage Lenders, and given concern for development purposes. that had been expressed about aVordability and so forth, we commissioned some research at Province wide level which indicated that whilst we did not Q171 Chairman: So you think that there is a future have aVordability problems on the scale of London for solid partnerships between the Housing or Dublin, there was still nevertheless an emerging Executive and Housing Associations to accelerate problem which we wanted to track. We have been some of the new build? developing a methodology to do so at district Mr McIntyre: Again, the new build programme was council level. I may ask my colleague, Mr Cuddy, delivered as a result of the joint eVorts of the just to expand on how that methodology works and Department, ourselves and Housing Associations. One of the structures that was put in place where we are with implementing it at this present subsequent to the Department study was a tripartite stage. working group which is intended really to manage Mr Cuddy: Yes. A further impetus to that work was the programme in its entirety and diYcult schemes in our role in PPS12 which the Chief Executive has particular from start to finish. referred to which is about assessing need for area plans. Part of that needs assessment was to deal not only with social housing but also with low cost Q172 Chairman: Just turning to the grant aid scheme aVordable housing. To inform that work we believed enabling private developers to engage in social we had to develop some form of aVordability index housing construction and operation, what and we are currently working with four academics advantages would such a grant aid scheme have over from some of the leading universities in the UK to traditional grant aid to Housing Associations or the develop that index. Basically it looks at head of Housing Executive? household income at district level, then using the Mr McIntyre: I suppose it brings more providers Council for Mortgage Lenders’ annuity calculation into the marketplace, if developers actually own for mortgages, to see what scale of mortgage that land, there would be significant advantages. They level of income would support. That level of have expertise that perhaps the public sector does mortgage is then compared with a profile of house not always have. There will be issues about value for prices in that area and from this we can determine money and controls. I suspect the Housing the extent to which there may be an aVordability Association movement will argue, as they are problem. I must stress that it is an index, an arguing in England as a consequence of the Housing indicator, it will not crunch out specific precise Bill, that they are heavily regulated, whereas private numbers but it will enable us to do further work into developers are not. Private developers, from the aVordability in that location. The benefits you asked proposals I have seen arising out of the Housing Bill about our enhanced ability. We believe we will be so far, do not seem to be subject to the same level of able to inform the area plans through the PPS12 regulation. Our view is that it is new ground—it is input, ie the assessment of housing need. In turn, still to be tested in England. There are substantial that should enable the Department of the objections to it but the Government seems to be Environment to assess the land requirement for intending to pursue it and our view is that we, in social housing and for low cost aVordable housing Northern Ireland, should be keeping an eye on it and hopefully the benefit of that land is then either with a view to applying it here if it will add to the rezoned or provision is made for it for that level of delivery of the housing programme. housing. Ev 90 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley

Q175 Reverend Smyth: You have mentioned, of Executive and, indeed, into the public expenditure course, the mortgage people, you have mentioned system generally here in Northern Ireland which we the academics, are there any other stakeholders who have been able to deploy in new investment. Why do you have been involved with to try and draw up such we think it is timely? Well, I suppose given the scale a plan? of sales here, the potential impact on stock available Mr Cuddy: Yes. We have been involved with the for letting in years to come would be one of the Department of the Environment who are issues. The cost of replacing a house compared with responsible for the area plans. We have been in the cost of the receipt we are getting I think is an consultation with the Department for Regional issue now. Our rental income is beginning to fall as Development who have responsibility for the overall well now which it should do, obviously, given that regional strategic plan. We will in due course also our expenditure on some programmes will fall as take it to our housing council who, as you know, are well but, nevertheless, that is of concern to us. From an advisory body and with whom we consult on a that point of view, we have said in our submission regular basis and, indeed, we will consult further that we do believe it is timely. afield once the model has been refined and we feel it is appropriate and fit for purpose. Q179 Reverend Smyth: Is there any evidence that the house sales policy has been used strategically to Q176 Reverend Smyth: We have been talking about address the issue of aVordable housing? the model. Have you considered any other Mr McIntyre: Before right to buy we had very low alternatives to the net stock model? levels of owner-occupation here, well beneath the Mr Cuddy: Perhaps I could maybe clarify that what rest of the United Kingdom in the late 1970s/early I have been talking about is the aVordability index. 1980s. The question I would ask is “Where would we The net stock model is a diVerent model, it is a be now if it had not been for the right to buy?” So strategic planning tool which tries to identify the our argument would be that strategically at requirement for social housing at a regional level. provincial level the right to buy has increased the Whilst there is clearly some relationship, that model levels of low cost home ownership for a large is a diVerent model and is used for a diVerent number of families who otherwise would not have purpose. had that opportunity. At a provincial level we believe, yes, strategically it has contributed Q177 Reverend Smyth: Have you looked at any significantly to helping people access low cost home other alternative to that net stock model? ownership. Mr Cuddy: Yes, indeed. In fact, there are essentially two models at regional level. Both of those models Q180 Mr Pound: Chairman, can I just ask a quick are described as residual models, they basically look supplementary. You talked about capital receipts at estimates for projections of households over the flowing to the Housing Executive, presumably this is next five to ten years. Then they look at the output on a slightly diVerent model from the GB model? from the private sector in terms of new build and Mr McIntyre: It is. then they identify any shortfall. That shortfall would be deemed to be the requirement for social housing. Q181 Mr Pound: Could you give us some indication Now I would stress that is at our regional level, of the percentage of right to buy capital receipts however we deem that to be the top down approach. which actually went to you to be recycled? We then have a bottom up approach in-house which Mr McIntyre: We can supply a note in some detail looks at waiting list analysis, we use that to get an on this. Basically, I would guess, up until this past idea, an assessment, of need locally. Of course we four or five years, the Housing Executive was then have three points, if you like, the two figures gaining the benefit of all of its capital receipts. from the two elements of the net stock model plus Subsequently, unlike England where I think, if I the bottom up approach. We believe using those recall, 25% of it or a certain percentage has been used three tests gives us a fairly good insight into needs to pay oV the local authorities debt, we have always assessment both at a regional level and a local level had access to the full capital receipts that we have in Northern Ireland. generated. What has been happening over this past five years, and I may not be totally accurate there but Q178 Reverend Smyth: When we are speaking of I can confirm it in writing, has been that a planning needs, can we move on a little bit then. I notice that figure has been set by Government which we have you have actually stated you believe the Department included in our budgets for the use of capital for Social Development’s review of the house sales receipts. In the year just past, for example, the scheme is timely, why? planning figure, I think, was £110 million whereas Mr McIntyre: I will pick that one up, Chairman. I we generated something of the order of £150–160 suppose it is really worth stating at the outset the million worth of capital receipts. The balance of that strengths that the right to buy scheme has had in went back into the system. We can bid for it and Northern Ireland. It has created low cost ownership sometimes get some of the money back for housing for well over a hundred thousand people. It has but on occasions it is used to support other created a mixed tenure in many estates throughout Government priorities, such as health expenditure the Province. A lot of people have remained on those or educational expenditure. Would it be helpful, estates as a result of that house sales scheme. It has Chairman, if I was to supply a note on the exact also brought huge capital receipts into the Housing figures around that one? Northern Ireland Affairs Committee: Evidence Ev 91

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley

Q182 Reverend Smyth: Am I right in saying that in stock but not as significant as you might anticipate possibly it was more beneficial to the tenants in that because we have had to pick up other significant they were allowed to buy at a better rate than roles. In the longer term very definitely our cost sometimes in England? structures will have to reduce and the real challenge Mr McIntyre: The levels of discount have broadly to the organisation, and Rev Smyth will know this been in line with the right to buy scheme in England, quite well, the real strength of our organisation is broadly in line. There has been some variation from our local network of oYces and the connections we time to time but obviously we have not had the have with local communities and so forth. Faced capping until fairly recently, of the discount level. with a declining stock, it is how we manage to get a Certainly there has been very significant capping balance between that and the importance of our around the London area of discounts where they are network of local oYces. In terms of the changes to somewhat lower than the discount levels which we the stock, the simple answer here is, if we are going currently have available. Did you want to add to be managing a larger number of flats, the people something to that? we are dealing with are going to be more vulnerable, Mr McCaughley: Up until recently there was virtual are going to need more support, are going to need absolute parity between the two schemes, and, in more intensive management. If you look at our fact, now there is no such thing as a single English waiting list, these days demand is for small units of scheme that is regionally based so we cannot draw accommodation. So house sales to some extent, I those straight lines of comparability any longer. The suppose, is providing a match between the waiting discount rate in Northern Ireland would be broadly list and the type of household that we have on the comparable to a number of the English regions. waiting list.

Q183 Reverend Smyth: In its submission to this Committee, the Chartered Institute for Housing has Q185 Reverend Smyth: When you mentioned the proposed a number of changes to the house sales sale of flats and managing of flats, has the Housing scheme. Would the Housing Executive be prepared Executive been slow in selling to the individual to provide the Committee with a written response on tenant rather than actively selling to a developer who these proposals? is supposed to develop, and has not done it Mr McIntyre: Indeed, Chairman, there is quite a particularly in one area that I am very much aware lengthy list of changes which, I suspect, would take of? up quite a while to go through them. I am quite Mr McIntyre: I think I know the case, Chairman. I happy to do that in writing. would not claim to know the details of it.

Q184 Reverend Smyth: Thank you very much. Can I ask you what are the short, medium and long-term Q186 Chairman: You have got an advantage over implications for the Housing Executive of the the rest of us. decline in its stock resulting from the house sales Mr McIntyre: If I am not mistaken I think it is a case scheme? What are the implications for the Housing in the Donegal Road where as opposed to disposing Executive as the nature of its stock in terms of of individual tenants we disposed of the block to a quality and character changes due to house sales? developer who took some time to get his plans into Mr McIntyre: I will deal with that fairly briefly. First place. of all, let us look at the impact of supply, the availability of dwellings for letting purposes. Some research which we have just completed, and which Q187 Reverend Smyth: I hope we see them some we are quite happy to make available to the time. Can I move on from that point and ask what Committee because we believe it is a very important arguments could be made for and against the piece of research in this area, tells us that in terms of introduction of a “right of first refusal” in dwellings available for letting, the short-term Northern Ireland? implication is fairly insignificant. The research tells Mr McIntyre: We would argue that it should be us that most of those people who bought would not included in any review of the house sales scheme that have bought elsewhere, would not have moved out is completed. It is used in Northern Ireland at the of that stock and, therefore, the impact on lettings in moment on a selective basis and on a voluntary basis the short-term is insignificant from house sales. The where in areas of high housing need the Housing impact over a longer period of time is rather Associations will be directed on to our estates to significant and the supply of dwellings available for look out for properties going back on the market to re-letting will begin to fall. In terms of the impact on try and acquire them. It has got to be done on a value the organisation, I suppose the simple rule would be for money basis and it has got to be done on the basis your stock is falling, therefore your organisation that there is a need that it must satisfy. We are using should be declining and, indeed, that is a very it selectively in areas of high, urgent housing need. obvious view that people might take. But the reality We would support the inclusion of it in any review of is that since 1995 the Housing Executive has been the house sales scheme that the Minister carries out. asked to take on a number of new, significant roles in and around our involvement in inclusivity, neighbourhood renewal, the fuel poverty area and so Q188 Chairman: On a 10 year basis similar to the forth. We have been shedding staV to reflect the loss housing? Ev 92 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley

Mr McIntyre: Yes. related to a post oYce type role, a range of options in the middle which were large scale or partial Q189 Mr Bailey: I want to ask about co-ownership. voluntary transfer, arms’ length management What evidence is there that the co-ownership scheme companies and so forth. How we commenced at that meets identified housing need rather than just simply stage was through the work that HCAS has been demand? carrying out for both the Housing Executive and the Mr McIntyre: Co-ownership, and I know that you Department jointly, which will address the strategic have had evidence from co-ownership, meets the options available for the future management and needs of those people who cannot buy a house. The maintenance of the Housing Executive stock. In a average income is something like £13,500, which is sense those recommendations have gone into that about half the average income of a person buying a evaluation, which was an evaluation based on dwelling outright or under a mortgage, therefore Treasury models, Treasury guidance, and on where would those applicants go if it were not for co- guidance issued by the OYce of the Deputy First ownership? In that sense they are likely to go on the Minister. I think, as the Department did explain in waiting list of the Housing Executive or, their evidence, that particular evaluation is currently alternatively, they are going to look for private being considered by the Department economists. It renting. On that basis we would argue that they do needs to be signed oV there and will go to DFP who meet a form of housing need. One of the things we will also be asked to take a view on it. That is where are planning to do, and will be commissioning it is at the moment and that is how those models that shortly, is some research which will look at co- were represented by the Chartered Institute of ownership applicants, look at where they might have Housing have found their way into the evaluation. gone if co-ownership had not been available and so forth, and that will provide some more detailed Q192 Mr Bailey: Do you actually agree with the information. Our argument is that co-ownership has assessment of Chapman Hendy? been very successful. The research that has been Mr McIntyre: The assessment is that for the short to carried out demonstrates that it is very successful medium term—I know the Department have said and makes a valuable contribution to housing those this and that has still got to be endorsed by ministers people who are on low incomes and who otherwise and all sorts of things—the best option at this point might be excluded from housing. in time would seem to be the public sector investment route. There are a lot of assumptions Q190 Mr Bailey: I realise that I am probably asking around that, assumptions to do with capital receipts, you to pre-empt the result of your research but what assumptions to do with the continued level of changes do you think might be made to co- funding and so forth. They are independent, their ownership schemes to have them employed more experts have done this for many local authorities strategically? around the United Kingdom and since we employed Mr McIntyre: One of the things we are doing now is them I think we have got to accept the advice that talking to co-ownership about where they can play a has been given to us. significant role in terms of strategies within the housing market generally. I think, for example, of the Q193 Mr Bailey: Why do you think the report took work that Stewart has mentioned around so long? aVordability indicators. Clearly one would want to Mr McIntyre: I will maybe ask my colleague, target the eVorts of co-ownership in those areas which Mr McCaughley, who was the Executive’s manager are identified as having aVordability problems. We of that report along with the Department, not see a role for co-ownership in urban renewal areas because we do not have an answer, we have a very and helping to put back mixed tenure property into clear answer on that as to why it has taken the time areas which are predominantly owner-occupied at the it has. minute and those owner-occupiers tend to be low Mr McCaughley: It did take a long time but in many income as well. We do latent demand testing in rural respects having been in contact with other places like areas to try and identify what unmet need there is and, Glasgow and Birmingham perhaps it was not unduly whilst we are identifying unmet need for social long. What happened basically was on the advice of housing, we are identifying unmet need for low cost, the consultants we delayed closure on this particular aVordable housing and ownership, working in evaluation until we had greater detail and tandem with the Housing Executive would be an clarification from the Treasury about newly advantage. emerging models in England. So the view was taken we could have closed the book on it earlier but we Q191 Mr Bailey: Could I just go on to resources and would not have had enough detail around prudential future options. In the past the Chartered Institute of borrowing and ALMOs to make a fair and Housing has put forward a number of potential comprehensive assessment of all the options options for changes to the role of the Housing available to us. Executive. Which of these options do you think has the greatest potential to impact positively on the Q194 Chairman: Can I just tease that answer a little future provision and management of social housing? bit more. The DSD in giving evidence to us said that Mr McIntyre: As I recall it, the Institute put forward at this stage it would be as likely as not the status quo seven options to the Social Development Committee would be the option. Why has it taken so long to get starting with the do nothing one, there was one approval to no change? Surely if any of the other Northern Ireland Affairs Committee: Evidence Ev 93

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley options would have been decided or preferred then certainly on the basis of last year’s programme has they could have said “Well, the time delay is in us been eVective in getting planning approvals out of investigating and looking at the changes to the the system earlier to allow schemes to start earlier Housing Executive”. When the recommendation is than has been the case in the past. So really three no change, status quo, what on earth can be taking issues: the strategic role of PPS12, the issues around them so long to sign oV? modernising the planning service and the actual Mr McCaughley: It is the depth of the study itself. At liaison of the schemes themselves and the quality of the end of the day the study involves a 30 year the planning application from housing associations projection of all your investment requirements, a which had been, I gather, a bit of a problem which 30 year projection of all your income streams, an has now been sorted out as well. assessment of your ability as an organisation. There is no such thing, I suspect, as the status quo in public Q197 Mr Hepburn: What do you think the impact service these days and the report does not say that. was of the delay in publishing PPS12? It is a public sector route but there are conditions Mr McIntyre: PPS12 is quite new ground for that the HCAS recommends and we must take everyone who has been involved in it here. I guess the action on. So really, as I say, like Glasgow and answer to this is the extension of the three year Birmingham, all the data must be validated. We housing programme to five. Land is generally have sent our own auditors in to validate it and give attached to most of that programme so in the short it a clean bill of health and I suspect the Department to medium term it is probably not a problem. will want to be fully assured that the information in Beyond that, getting PPS12 cleared is absolutely the report is comprehensive and accurate. critical for both supporting a programme but also for supporting the Department’s programme of Q195 Chairman: So it is a change or no change? finalising area plans over this next few years. We Mr McCaughley: It is a public sector route with need to get PPS12 sorted out so that we can input to conditions that the Housing Executive is required to those area plans, which is your local development do things by way of its performance and its cost. framework in GB terms. There is a programme of new area plans scheduled and it is important that Q196 Mr Hepburn: What changes do you think PPS12 is finalised to support that programme. could be made in the planning system that would provide more social aVordable housing? What Q198 Mr Luke: You have talked about the option of changes do you think could be made to try and no change in the way that you work here, and I can secure more land for housing development in areas understand obviously that argument. We have of high need? talked about Glasgow and we have seen how the Mr McIntyre: If I could maybe wind those two Glasgow model has developed, or has not questions into one if that is okay with you, developed. My own local authority is going through Mr Hepburn. We see at a strategic level the key the same sort of five year investigation about the best change that will arise around the securing of more model to put forward. In the context we are all land for aVordable housing and social rented working with, the financial regimes mean that we housing will arise out of PPS12. That role requires us have fewer resources and obviously in Northern to prepare for each area plan a fairly detailed Ireland that will be the same case, there will be fewer housing needs assessment covering rented housing, resources for housing in Northern Ireland. What aVordable housing, supported housing, housing for alternative ways have you looked at of capturing travellers and so forth, so that need has been alternative capital investment? identified at that level. Beyond that, the intention of Mr McIntyre: In many ways. If we take the new PPS12 is that will feed into the area plans and the build programme, the capital investment, part of it area plans will make provision for land to allow that has been funded privately in the same way as it is in need to be met. At that level, strategic level, planning the rest of the United Kingdom. In terms of the level, we see PPS12 being key. It is not too far away management maintenance of our stock we have gone from some of the things which are emerging out of through the UK model of assessing what is the best the Barker Study which are saying the same things, option and whether or not we should be bringing that the housing and planning organisations must finance into it. In terms of the Private Finance work more closely together, land must be identified Initiative and so forth, the Assembly here for low cost housing and rented housing so that end commissioned a very significant report into the role of it is not too diVerent from the Barker end as well. of PFI in supporting capital investment in Northern At an operational level in the planning service—and Ireland. The initial focus is really on major I know you are taking evidence from DoE and they infrastructure schemes to do with roads, health, will be much better able to advise you of this than I hospitals and so forth. PFI has been assessed as part can do—the plan is to modernise the planning of the strategic option review which we referred to service itself, and it is really about streamlining earlier. We have looked at PFI as being a route, for processes because one of the biggest issues was the example, of funding some particular types of length of time taken to get planning approvals for housing programme. One which comes to mind is new build programmes which is quite significant. the very significant heating replacement programme There is more that could be done there. At a scheme here in Northern Ireland. We looked at that, it did by scheme level there is liaison going on between the not prove to be value for money. We will continue to Department and the planning service which look at PFI as and when particular capital Ev 94 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley investment programmes arise. I am thinking here of Q201 Mr Luke: I have been in that circumstance the maintenance strategy which we have in place myself in diVerent guises in local government. We with the Department which sees a significant have talked about the decent homes standard and investment required to upgrade and modernise throughout the UK many areas are now promoting single person dwellings. PFI is a model looked at in lifetime home standards, especially the adaptation terms of funding that particular capital investment of houses to make sure that people can live in them because it is a single programme. through diVerent life changes. What impact do you think that would have on your future expenditure Q199 Mr Luke: Obviously the money you have also patterns if you are going to achieve these standards aVects the standards that are set. I know the GB that everybody is looking for in the UK and in Government has set a standard for decent homes. Ireland as well? Obviously over the UK all council houses or houses Mr McCaughley: We were party to a major study on owned by the public sector should come up to a lifetime homes and it is gratifying to see that the decent homes standard by 2010. I believe you are work the Executive did with the Chartered Institute developing a strategy, can you give us some insight and others was mentioned in the London Plan. The into how that is going and when you expect that to new build programme has been adapted for social be published? housing. We have a very clear view that it should be Mr McIntyre: Okay. Could I maybe ask my adapted for the private sector and, in party with other agencies, we will be making a recommendation colleague, Mr McCaughley, to pick that up? V Mr McCaughley: Yes. In developing the strategy we to that e ect, that the next review of building regulations should introduce lifetime home were very aware of progress in other regions in terms Y of setting and dealing with standards. In particular standards into the private sector. The di culty is, it we had the English model, decent homes standard, will take many years to have a direct impact on some which at the end of the day is a very basic standard; of our investment patterns by way of dealing with we had Wales and Scottish views as well. We had the the requirements of the elderly. As you will PSA review of decent homes. I think the thing which appreciate, in any given year new build will only add struck us was the expectation from Government and 1% or 2% to overall stock levels and it will take a from the various regions that you have to look now number of years for that to feed through to alleviate beyond decent homes, look to what impact that some of the investment requirements for the elderly investment will have on neighbourhood renewal, and disabled. Our view is we should make a start what impact it will have on community safety, on now. Social housing has done it and I think private health and safety, on fuel and poverty. We meshed housing should now do it because it does not cost all those views together and we looked at the costs very much. against diVerent standards, decent homes, health and safety and a much more comprehensive Q202 Reverend Smyth: On that very point of lifetime Northern Ireland version of a housing quality homes, in a world where we are getting more noise, standard. We took into account future prices and do you consider the possibility that even in new build costs associated with raising standards, not only in there ought to be noise insulation built in as well as terms of products, but in the construction industry thermal insulation for the wellbeing of people? and what they deliver to us. The bottom line coming Mr McCaughley: I think that is a point that can be out is that we really do need to reprioritise our picked up in the next review of the building programmes in the years ahead. It is a matter for the regulations. It is particularly appropriate in the Government to decide whether Northern Ireland development of flat complexes where there are gets a decent homes standard or some variation significant problems with acoustic insulation which thereof, but if a decent homes standard was to be need to be addressed as well. applied in Northern Ireland we would be in a position by 2010 to meet all the targets set therein. It Y Q203 Chairman: The Executive in its submission is basically around thermal e ciency, which is the gave a mixed report on the private rented sector. I one area in which the Northern Ireland housing think one of your quotes was: “The growth in the stock fails and there is a strategy already in place to private rented sector is sometimes operating as a handle that. We await the view of the Department on complementary supply but more so as competing the need for us to really redirect and reprioritise our supply”. Also, taking into account the questions we programmes. have just had on standards and the concerns there are about high levels of unfitness and disrepair in the Q200 Mr Luke: I believe that currently you have got private sector, what comments would you make a moratorium on non-essential repair work. What about the role that the private sector is playing and implications will that have on you achieving these can continue to play? targets? Mr McIntyre: Perhaps I can just clarify the thinking Mr McCaughley: I think the answer is absolutely behind those comments. There are two private none. This was a budget management issue. We had rented sector markets in Northern Ireland. One is to stay within the year end budget and we had to the one you referred to, which is old, unfit, poor make a decision in the short-term to hold back on condition and the type of action that needs to be some non-urgent work. I can assure the Committee taken there is about bringing those conditions up that all that work was released in the first week of whether through closure, unfitness action, repair April and is completed by now. action, grant aid or whatever. There is a diVerent Northern Ireland Affairs Committee: Evidence Ev 95

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley market emerging now, mainly supported by buy to Q207 Chairman: I think also that it has been said let, and it has been a significant part of the growth in that the Housing Benefit payment scheme is subject the private rented sector in recent years. That is the to fraud and abuse. What comment would you have first point, there are two markets, the to those who say there is large scale fraud and abuse complementary versus competing. If you go to within the Housing Benefit system? somewhere like the west bank of Derry, there is high Mr McIntyre: I think all benefit systems can be the housing need, young singles, modern, new, private subject of abuse. There is no evidence here that rented sector accommodation becoming available, Housing Benefit fraud is any diVerent than it is in the that can help take those people oV our waiting lists rest of the United Kingdom, indeed the figures that and into accommodation, therefore it is I have seen would suggest that they are just about the complementary in that respect. If you go to same. We work under the Department for Work and somewhere like Mid Ulster, indeed it was probably Pensions’ guidance on Housing Benefit, how you Portadown and Dungannon where we first saw this prevent fraud. We have the same verification checks, emerging where demand for social housing was we do extensive data matching, we risk assess falling away. The new private rented sector applicants, we have a visiting programme. We also accommodation was in a sense sucking out our work closely with the benefit fraud inspection unit. tenants into accommodation which was better There is a range of other steps which, if you wanted, quality because it was brand new, modern kitchens, I could ask my colleague, Mr McCaughley, to modern heating systems and so forth. That is the elaborate on. explanation for the two comments. The private Mr McCaughley: There are, of course, new rented sector strategy which we have just consulted proposals coming through for new anti-fraud on, and the Department made some reference to interventions. I think the biggest thing they have changes in legislation, which is part of all of that, will done is around computerised data matching. An be launched in mid May, which I am sure will be of example would be a few years ago we did data interest to the Committee. This sets out in some matching on pensions and discovered—all regions detail how we believe we ought to be working with discovered the same thing—a significant under- that part of the private rented sector which we declaration of occupational pensions which led to believe can make a contribution to solving housing the identification of two million pounds’ worth of need. fraud. Those sorts of data matching exercises are now nationally made, we are a partner to those Q204 Chairman: You say it will be launched in May. exercises and we have more planned in the years Are you prepared to let the Committee see a draft? ahead. Matching with the Inland Revenue, for Y Mr McIntyre: We would not have any di culty. It example, could release some interesting results at a has been approved by both our board and at national and local level. In broad terms, there is a Y departmental level. There is no di culty about that. whole range of measures beyond data matching. We risk assess every case and we visit the most risky Q205 Chairman: Thank you for that. Evidence has cases. There is a new programme that is being also been given to us that the private rented sector is developed nationally which we will apply locally an area where there is a rapidly increasing cost of from this October where a new form of risk Housing Benefit and that private sector rents have assessment will be introduced and a more rigorous risen at levels which are far in excess of public sector form of visiting carried out. I think the work on anti- rents. What would your comment be to that? fraud over the last few years has greatly accelerated Mr McIntyre: There are two reasons that lie behind and I suspect it will accelerate and expand with even the growth in Housing Benefit costs. One is the more momentum over the next three years. actual growth and the size of the private rented sector has been the factor that has made the most significant contribution to the rising Housing Q208 Mr Luke: There have not been any Northern Benefit bill. My understanding, and as the evidence Ireland pilots, there is the Pathfinder programme for has been given to you in the form it has I want to the UK being tried out in Edinburgh and at some check this, is that the level of rent increase in the stage in England where the actual Housing Benefit is private rented sector has been on a par with the paid out to the tenant rather than the landlord, that increase in recent years in public sector rent. Since has proven to be a bit problematic. I just wonder if that evidence has been given to you I just want to you have any experience of that here? check that and come back to you in writing on it. My Mr McCaughley: We had previous experience many view would be that it is the huge increase in private years ago. It is a two edged sword. Landlords, I sector numbers, volume, as opposed to rent suspect, will greatly resist it. I think what you are increases, which lies behind the increase in the finding already in England and Scotland is that it has private sector Housing Benefit bill. been applied in cases of temporary accommodation and the voluntary sector is, therefore, being hit as Q206 Chairman: So the total bill would have gone up well. You are dealing with vulnerable people, you but what you are saying is individual rents have not are giving them their benefit and the voluntary sector necessarily risen? provider cannot get the income oV them. It is a two Mr McIntyre: That is my view at this stage. Given edged sword. I suspect some form of selective that you have been given evidence which contradicts approach may be the answer here, but that has yet to that, I would just want to check my facts on that. be developed in any great detail in Northern Ireland. Ev 96 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley

Q209 Mark Tami: There is concern that the decline We have recently indicated that we will be testing out in stock that you have is causing problems in respect a couple of pilot integrated housing schemes, new of anti-social behaviour. Do you agree with that? build schemes, over the next few years, in line with Mr McIntyre: Do you mean by that question as we the Government’s proposals in A Shared Future, sell oV stock that people may be behaving badly on which is out for consultation. It allows us to test out stock we have sold oV? things like location, design, management, intensive management and the selection scheme, to first of all Q210 Mark Tami: What you have left, yes, but also secure a mixed community and maintain that, and what you have planned. things like right to buy, are fairly important as well Mr McIntyre: Therefore we do not have any way of because you could go to some areas where what is responding to that. The short answer to that changing the nature of an area which may have been question is that recent powers we have been given mixed is not so much the allocation of housing but under the Housing Order 2003 will allow us to take the fact that housing has subsequently been bought action against owner-occupiers and against private by a section of the community which is disturbing sector tenants on our estates. That legislation is now that mix. there. I should say just generally, we have been given new legislation to tackle anti-social behaviour Q214 Mark Tami: This may be a very diYcult which, first of all, stops people getting in the door. If question to answer but have you made any estimate there is evidence that they have behaved badly when as to what are the costs involved in trying to they had been our tenants we do not have to rehouse implement that sort of policy, if you can quantify them, they are disqualified. Introductory tenancies that? are now in place. Mr McIntyre: We do not have costs associated with integrated housing, that is simple. We do have some Q211 Mark Tami: We have been carrying out a lot proxies for costs arising from division. of anti-social behaviour legislation, do you feel that Northern Ireland is lagging behind and, if so, what Q215 Mark Tami: In terms of just providing social do you think is needed? housing within a divided area? Mr McIntyre: The next piece of legislation, the Mr McIntyre: Okay. We will take it in a very broad Minister is consulting on it currently, is the sense. For example, we have a number of properties introduction of Anti-Social Behaviour Orders. As lying vacant in interface areas so there is a cost. We an organisation we have been pressing for those, as know what the cost of spread is annually, that is a have been the police and so forth. As you say, there cost. We know what the cost—I do not have the has been an awful raft of anti-social behaviour information here but we have it available—is to legislation coming out in England and Wales. A repair properties which have been damaged because good deal of it I think is around the criminal justice of civil disturbances over the years. We know the area rather than housing. I know the police have cost of our POPPI scheme which provided security been saying they need those new powers. I think measures to private sector houses in interface areas. from our point of view, we have been given new We know that 10% of all families who approach us powers and we are now seriously testing those under the homelessness legislation do so for powers and we would rather work our way through intimidation. What you cannot get, which is a big that and introduce Anti-Social Behaviour Orders cost, is the ineYciencies in housing markets which before we start saying we need further additional arise because land is not available, we do not have powers. that. We can provide information on each of those heads. Q212 Mark Tami: Moving on to equality and community relations issues, what are you doing to Q216 Reverend Smyth: I thought you said you were address the divisions in the communities and to look not obliged to rehouse people but am I not right in at ways through your policies you can help the saying that the points system is controlled by the general integration issue? Housing Executive and the housing associations Mr McIntyre: We have a very old and complex must act accordingly and, therefore, people who problem here. have made themselves homeless because of their misbehaviour have been getting large points Q213 Mark Tami: I know it is the crux of the issue. compared with others and the housing associations Mr McIntyre: Maybe I can summarise it in a few have had to rehouse them to the detriment of others minutes. We come from a position where our job is who should have been housed? to meet housing need and because of circumstances Mr McIntyre: I think Reverend Smyth has been in Northern Ireland choice is much aVected by pointing up a problem with the outworkings of the security and safety and that has led to high levels of selection scheme for several years and particularly segregation in Housing Executive estates. That is the the impact of homelessness legislation. The new reality. You cannot change that, you cannot socially provisions, which I mentioned, under the Housing engineer that choice. Security and safety are Order now allow us to disqualify such housing predominant. Nevertheless, on our waiting list there applicants. Indeed, we have a major exercise at the are something of the order of 400 householders who moment where we have been going through our come from mixed communities who are in need and waiting list and asking our managers to identify, in by the same token their choice has been restricted. their view, which applicants are on our list for that Northern Ireland Affairs Committee: Evidence Ev 97

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley reason. We are reviewing each case. We need to take Q224 Mr Pound: I was wondering which line you legal advice on each of those cases, by the way, with were taking. a view to seeing whether or not we can disqualify Mr McCaughley: It overrides the intentionality applicants from a waiting list. You are right, clauses in the homelessness legislation and, as such, Reverend Smyth, there has been a problem in the is tailored to Northern Ireland’s requirements. past. We have been keen to see legislation taken There are a significant number of cases already forward to address that. It is now there and we are where we have actually disqualified them. intending to use it. We have disqualified already a number of applicants. Q225 Mr Pound: Gentlemen, our Chairman has Q217 Reverend Smyth: The housing associations are betrayed a distressing tendency to try to get advance aware of it? copies of your report and I have no intention Mr McIntyre: Absolutely. whatsoever of following him down that acquisitive path. However, your Promoting Social Inclusion working group on homelessness was set up last year Q218 Chairman: On Sunday, I had the displeasure of and they must be due to report fairly soon. Can you witnessing first hand somebody who was being let us know where you are? displaced, pushed out of their home. They were told Mr McIntyre: I sort of think I can dodge this one, they were leaving the next morning, irrespective of Chairman, in the sense that the Promoting Social their desire to do so. What would happen to that Inclusion group is actually a group chaired by the individual, Monday morning? Department. The Housing Executive is actually on Mr McIntyre: Displaced for what reason, that particular group, along with other Government Chairman? departments and statutory agencies. My understanding is that it is likely to be reporting some Q219 Chairman: Because the community no longer time over the next couple of months. We are a wanted them there. member of that particular group rather than being Mr McIntyre: Yes. What they clearly have to do is the lead on it. We believe that it is complementary to to present to the Housing Executive the next day. our homelessness strategy, which I am quite happy to let you have a copy of. Q220 Chairman: And then be treated as a homeless Chairman: I would not like to ask you for a copy but, case. of course, if one comes our way that would be very Mr McIntyre: Again, this is where the new helpful. legislation comes into play. This has happened to somebody in one of our oYces locally. They were displaced—and we were satisfied to that extent, Q226 Mr Pound: Could I just ask a final question which we have always got to be—because they had about the Northern Ireland Tenants Action Project. been behaving anti-socially, in which case we could It has been said that given the presence of, for disqualify them from the waiting list. I would need example, the Department for Social Development, to know the individual circumstances. We have done the Housing Executive, and the Northern Ireland it with an applicant who walked in our door Federation of Housing Associations on the presenting himself as homeless and said “I have been management committee of NITAP that the homeless because I was joyriding on an estate” and assistance provided is not wholly independent. we disqualified him from being homeless under the Mr McIntyre: I know that you are seeing NITAP at legislation. some stage and I guess they are the best judge of that. We fund NITAP along with the Department and, for that reason, both the Department and the Q221 Chairman: I do not think in this case I will make judgment as to whether or not there was or Housing Executive have representation on their was not anti-social behaviour. It is a very fine management board but in terms of hands-on, day- balance. to-day operation of NITAP, I frequently go to Mr McIntyre: Absolutely. One man’s anti-social meetings where NITAP are sitting on the other side behaviour is another man’s “I do not like your and have views that I might not necessarily agree political thoughts” or whatever. with. I would not accept that at all. At an operational level they are wholly independent. Our engagement with them is at board level because we Q222 Chairman: Exactly, thank you. fund them. To make sure our funding is well spent Mr McIntyre: We have got to be very careful. It is we, along with the Department, carry out a review of also ripe for a judicial review. NITAP every three or four years to make sure that it is doing the job and it has satisfactorily passed those Q223 Mr Pound: Do you make determinations on tests. I would not accept that but I would be the grounds of intentionality? interested to hear what NITAP said. Mr McIntyre: I think legislation that we have got under the Housing Order allows us specifically to disqualify under that particular piece of the Housing Q227 Mr Pound: What other mechanisms do you Order rather than under the homelessness have for listening to the voice of tenants individually legislation. or collectively? Ev 98 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Paddy McIntyre, Mr Stewart Cuddy and Mr Colm McCaughley

Mr McIntyre: We have a Housing Community omnibus surveys which give us a feel for what the Network which represents something in the order of public think about the services the Housing 450 community groups around the Province. It Executive are delivering. builds up from the bottom where there is a tenants’ association at the local estate level. Our manager Q228 Mr Pound: Are they published? I am not would have a local consumer panel which is built up asking for a copy of it. from that representation which advises the manager Mr McIntyre: They are, yes. on the local oYce business plan, the performance of Chairman: Mr Pound’s last question was known in the oYce and so forth. That builds up to a central the trade as a teaser because, as you know, we shall level where there is a central Housing Community be speaking to the Tenants Action Project next. Network which we use very extensively for policy Gentlemen, can I thank you for the evidence you development and, again, that is extremely have given and, once again, thank you both for your successful. We have done a lot of work on capacity hospitality and the way that you have responded to building for the voluntary sector out there and on a requests from the Committee. We are very grateful quarterly basis we also carry out continuous and we appreciate the time that you have put in.

Supplementary memorandum submitted by the Northern Ireland Housing Executive

Thank you for your letter requesting follow-up information relating to the evidence of 27 April 2004. Please see our response to the issues in the order requested. 1. I agreed to provide a note on the percentage of capital receipts retained from House Sales in recent years which was retained by the Housing Executive (Question 135). Please see Question 1 attached. 2. I agreed to let the sub-committee have the Housing Executive’s views on suggested changes to the house sales scheme put forward by the Chartered Institute of Housing (Question 137). Please see Question 2 attached. 3. You asked for a copy of the research referred to Question 138. A copy of the research report is attached. 4. I agreed to provide a copy of the private rented sector strategy. A copy of this is attached. 5. I indicated that in relation to the reasons for the increasing cost of Housing Benefit that I would check the detail of our response to the sub committee (Questions 155–160). Please see Question 5 attached.

Question 1 I agreed to provide a note on the percentage of capital receipts retained from House Sales in recent years which was retained by the Housing Executive (Question 135). The figures below reflect the total Capital Receipts for each of the last five years, the original Capital expenditure in each of the years and the additional funding provided to support additional Capital expenditure. The additional Capital expenditure was funded from additional Capital Receipts in year except for 1999–2000. The percentage of receipts retained over the five year period is 54%.

Capital Captial Additional SPED related Receipts Expenditure Capital (Original) Expenditure

1999–2000 £81.0 million £88.7 million £2.5 million £2.5 million 2000–01 £107.6 million £77.2 million £14.5 million £5.0 million 2001–02 £106.9 million £84.9 million £14.0 million £10.5 million 2002–03 £160.0 million £91.5 million £32.1 million £28.0 million 2003–04 £181.2 million £100.5 million £42.0 million £42.0 million TOTAL £636.7 million £442.8 million £105.1 million £88.0 million

In total, £105 million additional funds were allocated to Capital Expenditure over the five years sourced from Capital Receipts (exception being 1999–2000). Of the £105 million some £88 million was used specifically to support the SPED scheme. Northern Ireland Affairs Committee: Evidence Ev 99

Question 2 I agreed to let the sub-committee have the Housing Executive’s views on suggested changes to the house sales scheme put forward by the Chartered Institute of Housing (Question 137).

Ending the obligation on the NIHE to sell under the House Sales Scheme The right-to-buy makes positive contributes to the eVective working of the housing market and meets the wishes of many tenants. Modification of the scheme to suit changing conditions is readily achievable within its statutory framework. Allow house purchase pollcies for NIHE and housing associations to be decided according to local strategies. Allow discounts to be determined locally to reflect housing stress and demand. Whilst there is merit in this idea, there are also many potential diYculties. Firstly, research has demonstrated that in the normal stock tenant households that purchase could have been expected to have remained as tenant households on a long-term basis. This means that denying the right to buy in high need areas such as west or north Belfast would not automatically translate into relet opportunities in that if a household cannot buy, then most probably would remain as a tenant, as opposed to move to a low need area where the right to buy may apply. Secondly, it is expected that the standard of proof of need required to deny the right to buy would potentially be open to challenge. There would also be major questions over the scale at which such an exclusion would apply: eg street level, sub-estate, estate, local housing area, district. Such area-based exclusions are always problematic in that there will be households living cheek- by-jowl with one another that will enjoy diVerent rights based on a fairly arbitrary geographical boundary. Thirdly, an assessment of the nature of housing stress under the current Common Selection Scheme indicates that such an exclusion would have a disproportionate impact on a number of the categories under Section 75 of the Northern Ireland Act 1998. As a result, it is likely to be the subject of frequent challenge on grounds of equality. Accordingly, whilst there is some sympathy for the concept of a need-based exclusion, the practical diYculties of implementation are judged to outweigh the benefits. Allow Northern Ireland Housing Executive to retain all future capital receipts for housing purposes. This is not a matter for decision by Northern .lreland Housing Executive. Introduce Quota selling to preserve a certain percentage of homes or particular types of stock. Protect rural areas through exempting settlements of population of less than 3,000. Quotas in the opinion of the Northem Ireland Housing Executive are unworkable—the exclusion of specific property types to safeguard future supply is already part of the policy. A blanket exclusion of rural settlements could not be justified. Condition of sale that property oVered back to former landlord. Such a proposal is within the terms of the current review by the Department of Social Development. Ensure financial viability of existing associations by allowing exemptions for a specified number of years. This is not a matter of decision by NIHE but we note it was taken into account in the current review. Introduce transferable discounts for tenants in areas of high demand wishing to buy, allowing social housing property to be retained. NIHE has evaluated such a policy on several occasions and continues to conclude it does not represent value for money. Cost floor rule to include repair and maintenance in addition to capital costs. The cost floor is intended to reflect works which could aVect the market value of the property; do not relate to the normal repairs/maintenance; and as such are not a “normal” cost to the landlord. It is also a point-in-time cost—taking account of recurrent costs would be problematic. Extend the three year clawback rule. This is considered within the current review.

Question 5 I indicated that in relation to the reasons for the increasing cost of Housing Benefit that I would check the detail of our response to the sub-committee (Questions 155-160). The relevant facts are: 1 Total housing benefit expenditure increased from £311.8 million in 1999–2000 to £347 million in 2003–04. (The figures are not strictly comparable because of the cessation of Transitional Housing Benefit and introduction of Supporting People in April 2003). 2. The number of NIHE housing benefit claimants fell from 96,426 in March 2000 to 75,322 in March 2004 (A decease of 22%). Ev 100 Northern Ireland Affairs Committee: Evidence

3. The number of private sector housing benefit claimants rose from 37,470 in March 2000 to 50,702 in March 2004 (An increase of 35%). 4. Between March 1999 and March 2004 average NIHE housing benefit rent awards rose by 21%. 5. Between March 1999 and March 2004 average private sector housing benefit rent awards rose by 18%. 6. The main reason for the increase in housing benefit costs has been the growth in private renting and rent increases in both sectors. 14 June 2004

Memorandum submitted by the Northern Ireland Tenants Action Project and Representatives of the Housing Community Network

Introduction It is a source of continuing and growing concern to local community groups across Northern Ireland that the Waiting List for social housing, including the number of applicants in “housing stress” has continued to grow, particularly at a time when it is evident that the provision of new social housing is not keeping pace with the rising levels of housing stress. Indeed it is against this backdrop that many District Housing community Panel members express concern and disappointment that local people are unable to access social housing in their locality; indeed, many members find it hard to reconcile the apparent contradiction in government policy which states the need for sustainable communities whilst at the same time not ensuring an adequate supply of new aVordable social housing where it is needed. It is hoped that this Inquiry will go some way to addressing this fundamental short-coming in housing policy.

The Rising Demand for Social Housing The Committee will hardly have failed to notice that the waiting list for social housing, including the numbers of people in housing stress, or urgent need, has continued to grow rapidly in recent years. The Committee will no doubt share the concern of many community groups that the number of applicants on the waiting list sits at some 26,700, and that over 14,000 people were, in the Housing Executives own figures, in housing stress in September 2003. Whilst the above demonstrates that there is genuine need for increased social housing in Northern Ireland, many community representatives believe that there are even greater numbers of people in housing need who do not appear in oYcial statistics; this is more due to how need is actually defined. For example, the lack of available housing in particular localities is a factor in deterring applications to the Housing Executive and studies now show that many people remain in multiple occupation or in the private rented sector longer than they otherwise would. Indeed, many people remain in housing circumstances that are no longer suitable, for household size or mobility reasons, because alternative, more appropriate accommodation is not or no longer available; it is felt that the Net Stock Model does not recognise such factors in determining local need. Many community representatives would take the view that the Net Stock Model for the calculation of housing need is not the most appropriate method of measurement and that social housing is not a residual sector but indeed the tenure of choice for many households and would call on greater consultation with local communities when using such models to calculate housing need.

The Continuing Decline in the Supply of Social Housing Whilst it is right to acknowledge the advances and contribution made by the voluntary housing sector in Northern Ireland it is of great concern that the social housing sector continues to contract at its current rate; this is mainly due to the sale of Housing Executive properties under “Right to Buy” and also through the demolition of obsolete and derelict stock. Indeed the Housing Executive has now sold more properties than it has actually built and continues to lose property at the rate of a housing management district each year. A further worrying figure is the numbers of former NIHE properties that have subsequently been resold, some 25% of the total. As many of these properties are in traditional communities, there net loss of properties available to rent threatens to break up traditional community life; this clearly makes the task of those involved in regeneration and sustaining communities much more diYcult. The most recent review of the housing market in Northern Ireland by NIHE indicates that the number of new starts in the social rented sector falls considerably short of what is needed and the conclusion is reached that this is a contributory factor in the increase in the number of people in housing stress. It is clear however that the problem seems to be getting worse rather than better and some significant intervention from government is required to address this serious issue and sooner rather than later. Northern Ireland Affairs Committee: Evidence Ev 101

Homelessness in all its forms is a major contributory factor to social exclusion; it can be a barrier to employment and an obstacle to active participation in society. As social inclusion is a major theme of the Belfast Agreement and features prominently in the Programme for Government, it is important that significant steps are taken to reduce housing stress through the availability of new and aVordable properties for rent. Whilst it is clear that sales to tenants will at some point slow considerably, many feel that there is a major doubt over the long term viability of the Housing Executive as landlord. This is a particularly important issue as the Housing Executive, as landlord rather than as the strategic housing authority, has an important function in supporting community development and leading regeneration and community safety, functions which do not at this point sit with housing associations, or comfortably elsewhere at this point. There is also concern that the Housing Executive, as it continues to contract in scale, will not be able to make a full impact in addressing anti-social behaviour, a role which government increasingly places on the organisation. Concern continues to be expressed that social housing, and particularly housing in Housing Executive ownership, continues to be viewed as a “residual” and is therefore a lesser sector of the housing market. It is the view of many community representatives, expressed through the Housing Community Network that the public rented sector should be supported more robustly as the tenure of choice and that government should be more energetic in identifying resources to fund new development; and it is not necessarily the case that mixed funding regimes have had their intended eVect. Perhaps the most eVective solution to the issue of resources is the more traditional model of direct public intervention; we would be interested in the Committee’s views on this matter. The overwhelming majority of Housing Executive dwellings that have been sold have been houses as opposed to flats and this has severe repercussions on the ability of the Housing Executive to house families adequately or to oVer choice to applicants or tenants seeking a transfer. In addition it remains unclear how enthusiastic Housing Associations will be to develop general needs housing in particular localities given the right of their tenants to purchase their homes. It is important that this current Inquiry oVers some definite guidance as to the future direction and priorities of housing policy in Northern Ireland and that the conclusions reached can be shared by all interested parties, particularly if we are keen to slow the decline of social renting and eVectively tackle housing stress.

The Quality of the Housing Stock NITAP staV and Housing Community Network acknowledge the progress made in bringing the housing stock across all tenures in Northern Ireland up to modern standards and note the considerable reduction in the headline unfitness rate since the previous house condition survey in 1996. It is however, disappointing to note that almost a third of dwellings failed the so called Decent Homes Standard; NITAP staV and members of Housing Community Network panels believe that work should be initiated to apply an agreed standard for decent homes in Northern Ireland, a standard which will no doubt confirm that there needs to be significant and continued investment in the housing stock, across all tenures. It is important that this should be done as many of the most vulnerable groups in Northern Ireland are those which live in the worst housing conditions. It continues to be of considerable concern to NITAP staV and community representatives on the Housing Community Network that important planned maintenance and improvement schemes to NIHE properties are delayed due to the lack of funding available; it remains a source of some concern that there is a relatively low level of satisfaction with the repairs service oVered by NIHE. Indeed it seems to many that there has been an inconclusive review of the maintenance service ongoing for some time, culminating in the present moratorium on non urgent repair work. It is hoped that during the course of this Inquiry, some views as to how such services are to be resourced, indeed how public sector housing will be supported and resourced in the future will be considered and that a positive direction can be given for public sector management and maintenance.

Conclusion In recent years the shape of social housing has begun to alter radically; the transfer of the public sector new-build programme has transferred a number of other long term roles and functions which clearly, local associations are not prepared for. The Housing Executive, at local housing management district level has an important role to play in the regeneration of estates and neighbourhoods, in promoting good community relations, in leading community safety strategies and in tackling anti-social behaviour. At the same time, the Housing Executive has played a pivotal role in supporting community development across Northern Ireland. It is essential that these roles are safeguarded and that public sector housing staV continue to be engaged in local communities. At the same time, adequate resources need to be available to tackle the growing problem of increasing housing stress, there is a clear need for additional investment to be made in new social rented stock and it is perhaps time to review the delivery mechanism for that development programme. 10 March 2004 Ev 102 Northern Ireland Affairs Committee: Evidence

Witnesses: Mr Murray Watt, Liaison OYcer, and Ms Hilary Kyle, Area Manager, Northern Ireland Tenants Action Project, examined.

Q229 Chairman: Ms Kyle, Mr Watt, you are very community participation in the social housing welcome. We noticed that you were watching sector by developing groups and promoting us from the back of the public gallery so you will eVective involvement. Our origin goes back to the not be surprised, therefore, that our first question is 1970s from a project in Ballymena and it grew from similar to the last question we asked the Housing there. We have a staV of 20 people in the Executive. The presence of the DSD, organisation with 11 of those being field workers the Housing Executive and the Federation of throughout Northern Ireland and we also have Housing Associations on your management specialist staV as well. Because we are funded from committee may lead some to say that there is a lack the Housing Executive and DSD, yes, our work in of independence within the project. How would you the main would be with community and tenant answer those criticisms? groups. We would not always say it is tenant groups Ms Kyle: Nottocontradictwhatourcolleaguehas because within estates compared with the house already said to you, we would say that our track sales there are a number of owner-occupiers on the recordspeaksforitselfinthatfirstofall,yes,the estates and we would work with the entire Department, the Housing Executive and the community as opposed to just the tenant reps. Federation are represented on our management Recently we undertook a pilot with one housing committee, however we do have community association and that was presented to the representation on that committee as well. There are Federation for consideration. However, we would three members drawn from the Housing not have the resources to be working with housing Community Network as was briefly explained. Our associations in the same sort of role that we are strategic plan where we are subject to three year doing now and if that was going to be pursued then review,wehavejustfinishedthatreviewinfact, we would obviously have to look for the resources includes not only interviews with Housing to back that up. We provide not only funding and V V Executive sta but with community sta as well information, we provide training courses and and they drew the same conclusion as they have support to the groups throughout the Housing done in previous years, that we continue to provide Community Network. If I can briefly explain what an independent role. We do not have a hidden that is. The Housing Community Network is a agenda, when we go to work with any community unique framework of the Housing Executive, of group we are working to the community’s agenda which other organisations would be quite envious. and we ensure that they consult with the wider They have a method of engaging with the tenants community. We are very open about what we do. and the community reps throughout all stages. We agree with every district oYce every year what Every community group within Northern Ireland groups we are working with and what areas we are going to be working with within that district. We who have any comings and goings with the Housing act as an independent broker in that we are trying Executive are able to elect two representatives to attend what is called a district Housing Community to explain to the community groups exactly the V policies and procedures that the Executive and Network and they meet with district sta to look at other bodies have in place, but then also trying to district issues. They do not look at individual explain their needs to the bodies and, indeed, the issues; there is a separate mechanism for dealing Housing Executive. It was interesting to hear that with that. In turn, they elect representatives to on occasions we are seen to be on the other side of attend an area meeting looking at budget the fence as opposed to being in the middle. Just programmes, schemes, and meeting with the area V recently we pulled together some research from sta . In turn they elect three people to sit on what surveys that we do with our groups on an annual is called the central Housing Community Network basis. There are 450 groups working with the and they meet with people like our colleagues who Housing Executive on a regular basis and we would were here this morning, they meet with assistant have something in the region of 580 who we would directors on a regular basis. They meet monthly. be providing advice to on a diVerent level. When we Really they are used as a consultative forum for the carried out research of the groups we are working Housing Executive. We would have a central role in with on a regular basis, the majority came back and supporting that sort of work as well. said that we did continue to provide that independent role. As I said, we really do feel that Q231 Chairman: You have described a system our track record speaks for itself and that we do which reaches out far beyond simply rented provide an independent role. housing tenants, similar perhaps to some of the area committees that local government has created Q230 Chairman: You have mentioned your 450 within GB. Does that mean that you are providing groups related to Housing Executive properties, a service that perhaps is missing from the general does that mean that most of your work is focused provision of community services within Northern on Housing Executive tenants? Could you talk us Ireland, do you believe? throughtheworkthatyoudowithothersectors? Ms Kyle: We would always say that we add value Ms Kyle: Certainly. Maybe if I can just explain to what is already there. There are plenty of other briefly as an overview what we do and then we can providers of support and what we try to do is look at what groups we are working with. Our complement what is happening as well rather than mission statement is to achieve meaningful duplicating. Northern Ireland Affairs Committee: Evidence Ev 103

27 April 2004 Mr Murray Watt and Ms Hilary Kyle

Q232 Chairman: But focusing on housing? the larger scale. It probably is not geared up for Ms Kyle: Focusing on housing in so much as identifying local need but there needs to be some housing is not an island. Our colleagues this mechanism that does do that and does do that morning, I think, indicated a number of other perhaps with a bit more openness and a bit more projects that the community and tenant reps would transparency. be involved with. Our role would be very much to support them on these working groups, like the Q235 Mr Luke: Your comments almost confirm the health action zones, fuel poverty and all those sorts views expressed to us when we visited and travelled of things. around some of the areas of Belfast during our last Mr Watt: Maybe I could just add something. One visit. Have you any idea what kind of model could additional element to that is that we are very much in be put in place to improve that input? support of what district housing staV in the Housing Mr Watt: One of the mechanisms which the Housing Executive are being asked to do as their particular Executive uses is the District Housing Plan which is agenda has been broadening in the role and their produced on an annual basis for each of the 26 responsibilities, whether it is community safety, district council areas. I think one of the things which community relations, urban renewal or perhaps could be a useful addition would be to neighbourhood renewal. The work they are doing extend the actual purpose, the actual scope of the with Government community groups, I think we are District Housing Plan by involving the local elected very much in support of that. Our agenda and our representatives, local voluntary housing sector, local expertise has broadened as a consequence, so that is communities in drawing up the plan rather than why it is perhaps a bit broader than simply the public simply just responding to it. I think a plan which had sector housing tenants. more input would have more ownership and probably would be a more accurate reflection of Q233 Chairman: Do you have geographical what people understand housing need to be within coverage across the whole of Northern Ireland? that locality. Certainly I would encourage a greater Ms Kyle: We do indeed. We work with community and an extended role for the District Housing Plan groups through every district oYce. Every district planning process which would be more inclusive oYce, in fact, has one of these district Housing and, as I say, people would have more ownership of Community Networks and we are represented on it and have more commitment to it. every one of those as well. We would have a very close working relationship with the districts and the Q236 Mr Hepburn: Do you think housing staV, the fieldwork staV on the group. We meet associations are capable of providing social housing annually, me, them and the district manager, to in high demand areas? agree what we are doing in the areas so those Mr Watt: That is probably a question best answered relationships are cemented. by the housing associations themselves. There is no Chairman: Excellent. doubt that the housing association movement right across the UK, but particularly in Northern Ireland, Q234 Mr Luke: Following what the Chairman has has done an excellent job in providing the type of been asking, are you satisfied with the input tenants accommodation that no other provider could either and communities have into the current methods for in the public or the private sector. I think there are— determining the need for social and aVordable and this Committee no doubt has heard plenty of housing? evidence—plenty of views with regard to the Mr Watt: I think one of the things that we hear diYculties facing the housing associations building frequently at district Housing Community Network in high demand areas, whether it is the cost of land, meetings is probably the fact that tenants and whether it is land availability or site availability, community reps feel that they are not as involved as whether it is the planning processes or competition they might otherwise be. I think the determination of for development. I think all of these things probably housing need is a fairly complex and sometimes mitigate the voluntary housing sector but there is no bureaucratic mechanism. When it comes down to doubt that they certainly have a large commitment the level of local communities, I think the dividing to providing the general needs housing now that the line between what is need, what is aspiration and new build responsibility has been handed on to what is demand is a lot more blurred than perhaps them. would be the case in oYcial circles. I think as well that when we look at the urban and the rural Q237 Mr Hepburn: What do you think the geography of Northern Ireland it is a very, very Government can do to meet housing targets? Do you complicated arena. I think the housing market being think possibly one option would be to return the new as segregated as it currently is causes stresses and build programme to the Northern Ireland Housing strains at local levels which sometimes are not Executive? reflected in housing needs assessment. I think even Mr Watt: I will take that second question first, if within communities themselves there are divisions I may. I do not know if it is realistic to return the which impact on housing need and sometimes these new build responsibility to the Housing Executive require local housing managers to step outside the either in whole or in part. Certainly our experience box to address those issues. There has been quite a of what we are hearing at the district Housing lot of reference to the net stock model which has Community Network is that perhaps it would be been geared towards identifying the bigger picture, desirable either in whole or in part. I think on the Ev 104 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Murray Watt and Ms Hilary Kyle actual question of what Government can do, there is probably is a need, based on the index that the probably a bit of scope for a lot more creative Housing Executive does on the housing market thinking in terms of facilitating the voluntary sector every year, to be focusing on a wider range of areas within high demand or diYcult areas. I recall a than simply the traditional. number of years ago attending a conference in Dublin and one of the local TDs was oVering a Q243 Mr Hepburn: Have you identified any number of views with regard to how they would see weaknesses in the way that housing need is actually the voluntary housing sector movement having measured and, if so, what improvements do you more input and more contribution on the land in and think could be made to it? around Dublin. Whilst these figures are most Mr Watt: I am going to use another illustration, one definitely out of date and probably inaccurate, I will that is not too far from here in one of the estates now quote them just to give you an illustration. about a mile away. There is a block of flats which has Agricultural land in Northern Portmarnock on the been earmarked for disposal and for demolition, in outskirts of Dublin was about, what, £30,000 an fact it is currently coming down, but one of the acre. If it had been rezoned to housing it would suggestions that was oVered by local people was that probably increase to about three-quarters of a the site could have been cleared and used for million pounds per acre. One of the things that was sheltered housing accommodation for local elderly suggested was that by using the tax system you could people but because nobody had applied for sheltered tax that capital increase to the extent— housing within the locality it was determined that there would not be any need for it. Nobody applied Q238 Mark Tami: Can I just interrupt, how much for sheltered housing accommodation within the did you say it was worth an acre? locality because none existed. There was a vicious Mr Watt: £30,000 of agricultural land because it is circle there which nobody seemed able to break. quite poor— Indeed, we knew there were people who were frail and elderly within the estate who were living in Q239 Mark Tami: £30,000 an acre. upper floor flats who could have availed themselves Mr Watt: I think it had been translated for us in the of that accommodation because local knowledge north at that particular time and from euro to and certainly the Census told us so. I think a bit more sterling. creativity in identifying housing need, particularly in Mr Pound: A startlingly high figure for agriculture. that instance, could be beneficial. I do not want to get anybody into trouble but I think the district Q240 Mr Hepburn: Incredibly high. housing manager would have preferred an option Mr Watt: These are the figures that were oVered but like that rather than the one that we currently have, whether they are accurate or not, I do not know. which is the demolition of public sector flats and replacement by private sector flats. Q241 Chairman: I think what we are saying is the diVerence between agricultural land and housing is Q244 Reverend Smyth: Just following on from that quite staggering. question. Social need is not just for sheltered Mr Watt: Particularly in Dublin because of the net dwelling. Would you not say that is a problem migration of 50,000 people a year into the city. By aVecting many areas throughout the city in using the tax system to access more money then we particular, that people cannot apply because there is would be saying to the developers we will put not a chance of getting anything there? aVordable housing in with the housing that would be Mr Watt: That is absolutely true. Certainly the going in. It is that kind of creativity or innovation conversation that I had with local people in my oYce that Government might be encouraged to do, yesterday bore that out, that people were not particularly given the spiralling land costs in and applying for general needs housing in particular around Belfast in particular. localities because they knew there was absolutely none available. Even within your own constituency, Q242 Chairman: Do you think there is a need for the Reverend Smyth, in the Belvoir Estate, the Housing new village, new town approach that has been used Executive now only owns four houses as opposed to within a GB context within Northern Ireland to the flats. It is very diYcult to see how general needs ensure that housing need is met? housing could be oVered to new families or new Mr Watt: I think over recent years, in particular households formed from within the local since 1994, there have been a number of either community itself. Department of Environment led or even Belfast City Council led consultations on Belfast City Visions Q245 Reverend Smyth: What methods might and Urban Plans. Certainly within that there has improve the measurement of housing need? Have been an indication of the dispersal of housing and you any suggestions? the dispersal of economic and retail activity out Mr Watt: Again, I think through the mechanism of towards the country towns that lie within the involving local people and local social housing Greater Belfast area. I think one of the diYculties is providers in the district housing plan process that that it is very hard to visualise how these will work can happen, not just at the district housing level but because an awful lot of these plans seem to have certainly within particular estates where we are gathered dust on people’s shelves and we have never hearing on a regular basis about the long-term really seen them come to fruition. Certainly there concerns of parents who are saying “Where are my Northern Ireland Affairs Committee: Evidence Ev 105

27 April 2004 Mr Murray Watt and Ms Hilary Kyle children going to be housed in the next four or five danger that the communities themselves will not years when they are forming their own families or become sustainable. I would indicate the particular forming their own households?” They do not seem issue on the lower Newtownards Road as a to be able to identify anywhere within their own particular example of that. locality. We need to find some mechanism whereby it is not just need but it is also the aspiration to form households within your own locality, your own Q248 Mr Bailey: Can we just talk about house sales community, that should be regarded as one of the for a moment. In your submission you refer to the criteria, which at present it is not. “break up of traditional communities” arising from sales and resales and I suppose two issues arise from that. First of all, how important do you consider it Q246 Reverend Smyth: In your evidence you make to be to maintain “traditional communities” and, reference to “concern continues to be expressed that secondly, assuming that you want to maintain social housing, and particularly housing in Housing traditional communities, how do you reconcile the Executive ownership, continues to be viewed as a preservation of traditional communities with the ‘residual’...”Inwhatsense,andbywhom,issocial right to buy? housing being so treated? Mr Watt: One of the things that we frequently hear Mr Watt: I think what was indicated in our original in all of our Housing Community Network meetings response was that the current emphasis on owner- with local communities is that desire to protect and occupation and the focus on private renting had left sustain the traditional communities. It is something social renting, and in particular the public renting that is frequently said and it comes from local people properties that the Housing Executive owns, as rather than our own organisation. Our response to being a lesser sector of the housing market. We that particular issue in our submission was a meant “residual” in the sense that it is the rump reflection of that. Certainly you heard from Mr which is left. Quite a lot of the literature and research McIntyre this morning about house sales and how that has been published, certainly from our own successful it has been in providing home ownership reading, would suggest that many people view public opportunities to thousands and thousands of sector renting as a stepping stone to something else. households who would not otherwise have had that I think in that sense there is a danger that we do not opportunity. Indeed, many people have taken a defend the public sector and the public landlord as stake within their own community by purchasing the rigorously as perhaps we might. Certainly with the house in which they live. Whilst there has been—we absence of a new build programme and continued can quibble about whether it is a high figure or a low house sales at current rates I think there is a danger that there is an increasing threat of marginalisation figure—a significant number of resales of houses for the public land. formerly in Housing Executive ownership, I think that the ultimate need has been to replace the housing stock that has been lost to the public sector Q247 Reverend Smyth: I can understand your with new properties and that would be a way of not concern. Have you considered what steps can be just sustaining communities but also encouraging taken to address what your submission describes as new households to be formed within them. The the apparent contradiction between the need for second part of your question was? sustainable communities and the lack of adequate supply of aVordable social housing? Mr Watt: Again, to go back to a previous point, Q249 Mr Bailey: To a certain extent I think you have where households cannot be formed within localities answered it, how you reconcile the preservation of where the support mechanisms would be there for traditional communities with the right to buy? I child care or even caring for an elderly or vulnerable would assume from what you have said that you parent, people cannot access accommodation within think the right to buy has a role but it is necessary to, the locality to do that and are frequently being asked if you like, build new houses, presumably within the to travel larger and larger distances to find community, to sustain that community. Is that a fair accommodation and to diVerent parts of the town, summary? diVerent parts of Belfast, for example, where Ms Kyle: Certainly I think that would be our perhaps they would feel with their history, their experience from what we have been told at ground connections, their family, they might not be welcome level by those communities. Yes, this is an given the particular segregated housing market that opportunity for them to become a home owner, an we have. I think there is a genuine danger that people opportunity they would not otherwise be able to are being encouraged to move out from the access however, because of the rising need within the communities in which they reside for the purposes of area and the need for housing, yes, there should be forming their own households or accessing their own alternative social housing then provided. accommodation and that is a threat, or certainly represents a danger, to the cohesion of local communities and there is a danger that some of the Q250 Mr Bailey: There is a way forward that would sustainability of those communities might be sustain a traditional community but would also, threatened as well because ultimately it is about shall we say, meet the aspirations of people to get on services, it is about people having access to retail the property ladder. Are there any changes that you opportunities, to jobs, to shops, to schools and to think the house sales scheme should have to help health care. If these are being reduced then there is a that? Ev 106 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Murray Watt and Ms Hilary Kyle

Mr Watt: I think the right to buy—and it has been district where at the weekends, perhaps, there is no a right that has been given and a right that has been method of looking after the void houses and if a void taken up—people have benefited from that. I think house gets broken into an awful lot of damage can it would be perhaps inadvisable to make any be done before Monday morning. A community rep substantive changes to that right. I know that we can would take on the inspection to check on a regular talk about the generosity of discount but I think the basis and phone the emergency services and have rights that people had before, new households them closed or, for instance, in a small low rise block should have the continued right to do that. of flats where they can take on some sort of maintenance role in terms of keeping it clean and Q251 Mr Bailey: Just moving on, you note that as a tidy the Executive will give the community group a result of the declining stock there is a doubt over the small sum of money towards that, perhaps doing long-term viability of the Housing Executive as a some sort of local estate clean-ups in terms of landlord. Do you think it is now the right time to removal of graYti, small level things. It is only at a consider the role of the Housing Executive as a pilot stage but the indications are that the landlord? community groups would welcome the opportunity Mr Watt: It is always right to consider the long-term to be more involved but not necessarily actually take future of the public landlord. Our point was that if ownership at that stage. you are losing the equivalent of a district Mr Pound: You have touched on something I was management unit per annum through house sales going to come on to later. Obviously you read my and demolition and stock loss, I do not know what mind, which is not that diYcult! the critical point is but certainly there is a point Mark Tami: I would not! whereby the Housing Executive across all 37 of its districts, perhaps, would need to be reviewed in terms of its long-term future. I think there are Q253 Mr Pound: I suspect you have seen everything estates, there are small rural isolated areas and there which could possibly shock you! You mentioned are even blocks of flats in Housing Executive that you did not want to make allocations. ownership where the Housing Executive would be a Ms Kyle: The community groups, not ourselves. minor landlord, if it had any presence at all. I think there are particular areas where that needs to be looked at and certainly the Housing Community Q254 Mr Pound: Yes, the community groups did Networks continue to express some concerns about not. What about a role within the allocations the long-term future because they do see a continued process, do you think there is room for any contraction in the stock level but they also see what involvement? they perceive to be threats to the Housing Executive Ms Kyle: Certainly our experience would tell us, and at its present level and organisation through some research that we have carried out in terms of rationalisation of services. models of community involvement and allocations perhaps from England and in Scotland where they would have pre-tenancy interviews or bringing Q252 Mr Bailey: The logic of this particular people along to the local area to welcome them, approach is that residents and community groups there are a number of methods which are being should assume more responsibility for the management of properties. Do you have a view on looked at and being consulted but it is getting that that? balance. Obviously we understand the legislation Ms Kyle: Certainly our experience through the exists and there is a need to protect that. The Housing Community Network would tell us, and communities themselves would feel that in certain through various working groups, that whilst areas, and again it would be done on a pilot basis, community groups want to be involved and want to there are three areas fixed for a pilot exercise to be empowered to do that, they do not necessarily investigate what scope there is which the community want to take total control. If we can use allocations would be happy with and also the Housing just to illustrate that. There has been a long running Executive would be happy with as landlord but on a debate in terms of community involvement in small scale. allocations. Whilst the community representatives would say, “We do not want to allocate the houses, we want to inform and influence but we do not want Q255 Mr Pound: It is interesting because this has the role of allocating houses, we do not want people been tried, I have to say, to an almost universally coming to our doors and saying ‘Why did you let so disastrous level within GB where some of the most and so move into the area’” and there are a number bizarre allocations policies and procedures have of methods we are looking at in terms of perhaps arisen from the involvement of other groups, which codes of conducts, neighbourhood conducts and is why we are moving towards a more mechanistic things like that which could be encouraged, we are numbers based allocation system now, particularly supporting a number of community groups through where boroughs club together to do it. It seems to me the framework to take a more active role in some that you have, as ever, managed to get a compromise sort of small local service provision where the here where you have got some input but not total Housing Executive has agreed to set a small amount control, is that fair? of money aside to support community groups to Ms Kyle: Again, maybe that illustrates our perhaps add value to what they are doing in the independent role. Northern Ireland Affairs Committee: Evidence Ev 107

27 April 2004 Mr Murray Watt and Ms Hilary Kyle

Q256 Mr Pound: You have been reading my mind. where district managers and district housing staV are I was then going to say would you feel this was an intensively working through some very complicated example of your independent role? and complex local issues as well as the local housing Ms Kyle: I rest my case. ones. They do have a fairly unique familiarity with the local communities in which they work. That is Q257 Reverend Smyth: Following that question one of the reasons why I suspect the Housing through, is there not some evidence already of Executive continues to be held in fairly high regard disastrous things happening where in certain areas by all of the community reps in the Housing there are groups who may pretend to be part of the Community Network and why the Housing community who are allocating houses? Community Network itself continues to be a Ms Kyle: Our experience would tell us in working success. with the Housing Executive that the groups that they would be involved with in any pilot exercise would Q260 Mr Bailey: Just a very quick aside, if you can be bona fide groups who are seen to be adhering to just give a very brief answer. Do you actually have constitutions and being representative of the whole any housing co-operatives in Northern Ireland? community. I do not think there would be any wish Mr Watt: Not in the sense that we have in GB. When to go down the line of what you are referring to. I I formerly worked in Dundee we were instrumental understand where we have particular circumstances in establishing a number of them. I think we have a in Northern Ireland in terms of anti-social maintenance co-op in Strathfoyle. behaviour and things you have mentioned but that Ms Kyle: In the North West there is one is not the line that we are going down. maintenance co-op that has been in existence for a number of years. I think maybe experience would Q258 Chairman: It is a very diYcult balance though, tell us that now it probably would not be able to pass is it not, because you have used the term at this stage because it is not providing a service in “community reps”, and there is another term “local terms of money saving in that is has probably been reps”, who are called in to sometimes pass judgment more expensive to run than it should have been. on issues of anti-social behaviour and even allocation? Is there a danger that you will find that Q261 Mr Bailey: I can see the problems of having a local reps and community reps may end up being the housing co-op in Northern Ireland. Can I just briefly same people? move on. You have touched on this issue of anti- Ms Kyle: It may be naı¨ve to say we did not realise social behaviour. To what extent do you think the that problem exists and that is why we have to be decline in the Housing Executive stock is compatible selective in terms of looking at this pilot. If the pilot with its role in terms of community development, is tested and it does not work, as my colleague has regeneration and dealing with anti-social behaviour? said in terms of experience in GB, then the case is Mr Watt: I think there is a danger and concern has made. been expressed that as the Housing Executive Chairman: Mr Bailey, my apologies for interrupting. continues to decline in size and scale that over time Mr Bailey: I had not realised that my question was it might not have the number of staV, the level of going to provoke such a wide scale debate. staYng and the familiarity and intimacy with local Mr Pound: We are just trying to distract you communities that it currently has and that may actually. inhibit its capacity to tackle the issues of anti-social behaviour, to support community relations to the Q259 Mr Bailey: It would appear from what you degree that it currently would have the aspiration to have said that you would agree that tenants and do so. That would be something that Mr McIntyre community groups have got a wider role to play in alluded to this morning. It is a concern that we are terms of the management but not, you would hearing more often in Housing Community emphasise, in the allocations. Network meetings. Ms Kyle: No. Mr Watt: Even on the initial point you made, Mr Q262 Mr Bailey: Is there any legislation on anti- Bailey, when you were alluding to perhaps large social behaviour which you would find helpful in the scale voluntary transfers or other such mechanisms, context of the Northern Ireland situation? my understanding of the housing situation in Mr Watt: On the policies and procedures that the Northern Ireland suggests that there are not the Housing Executive has recently enacted in response same pressures given the better quality housing to the Housing Order of last year, at the moment the stock or newer, more recent housing stock that we training and information is being rolled out to actually have to pursue that particular course of Housing Community Networks. Certainly the action to meet the pressing needs of repair, Minister has oVered for consultation a view on Anti- maintenance and improvement and the ever vexed Social Behaviour Orders and Acceptable Behaviour question of finance. A number of times we have Contracts and other such mechanisms which our alluded to the uniqueness of the Housing organisation has responded positively to. It is Community Network and this is probably a good diYcult to see what other mechanisms might be in time just to commend the Housing Executive for the the oYng. I know that anti-social behaviour is an role that they have played in supporting and issue that is probably being raised at every Housing nurturing community development, not just Community Network meeting in every district and it through ourselves but through local district oYces is one that local communities are trying very hard to Ev 108 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Murray Watt and Ms Hilary Kyle come to terms with. Whether or not the current Q266 Mark Tami: Bearing in mind that growth, is mechanisms that we have in terms of the support there any mechanism for the tenants to have a and, indeed, the punitive measures are enough or are collective voice? eVective perhaps remains to be seen. Mr Watt: Over previous consultations, particularly on the houses of multiple occupation strategy that has been formulated, a number of organisations Q263 Mark Tami: Firstly, looking at housing policy, have been coming together on an informal basis, the do you think there is enough debate currently going Housing Executive itself, the NUSUSI, the on about the whole issue of the provision of social academic institutions, and indeed ourselves. We V and a ordable housing? If not, what do we need to have been looking at the means of supporting a perhaps stimulate a greater level of debate and resource for information to the various tenants involvement? groups within that sector, albeit initially our interest Mr Watt: Probably there is not enough debate, was the students and those within the academic primarily because of the circumstances and politics areas. Certainly one of the outcomes of those within Northern Ireland. What we try to do through discussions has been, if you like, an informal NITAP is provide access to the wider issues, wider discussion mechanism which may or may not information and wider experience to promote best become more formalised in due course. Certainly practice, to promote good practice through the those would be welcome discussions should they Housing Community Network. In the past it would occur. be fair to criticise people in Northern Ireland for being a little bit insular in their thinking and certainly we would encourage housing practitioners, Q267 Chairman: Now, earlier on Ms Kyle referred community representatives and politicians to to a desire to work with housing associations, but perhaps broaden the debate more fully. I think that said that unfortunately the resources were not there the previous inquiry on the Social and Development to enable that. If I ask the question would you like Committee under devolution and this current more resources, I am sure the answer would be yes inquiry have certainly thrown up interesting issues but could you elaborate a little bit further in terms of which I have no doubt people in local communities saying how you believe a small amount of additional would have great interest in and perhaps the resource could help you to expand the amount of community housing network would be an ideal tenant participation in other sectors and perhaps opportunity or an ideal mechanism for encouraging also in terms of whether or not you have looked at and stimulating that debate and discussion. alternative sources of bringing some of that money in to assist that work? Ms Kyle: If I can just answer your last query first. In Q264 Mark Tami: Looking at the private rented terms of access and other resources, we have always sector, do you believe it is making a contribution to taken the stance that to try and access other the need for social housing or not? resources we are competing against the community Mr Watt: It is our understanding that it probably is, groups that we are actually supporting and that the increased role in the private rented sector, empowering, so that is a role we have never taken. particularly in the urban areas in redevelopment, is In addition to that, I should say that probably if we providing housing and a good standard, quality of accessed other fundings I suspect that next year the housing in locations where previously it had not. DSD or the Housing Executive may tell us that they are not going to give us as much as they had done previously, so certainly we have not done that. Our Q265 Mark Tami: So you think things are Y Y improving? liaison o cers, who are the field o cers working out Mr Watt: The information that we are receiving on the ground, would be the people who would be would be that is the case. Certainly in my own doing the hands-on work should we then move down the line of doing any housing association work. experience in inner city Belfast, the growth of private Certainly the models that we would use and rented is something that has been noted by local encourage community participation through, communities and to a large extent it is recognised as whether it be compacts or whether it be local a good thing and a positive thing as well. I think one initiatives, we would see could be in some ways of the pieces of information that we have received translated to the housing association sector. The from other organisations undertaking research pilot that we have undertaken would indicate that would be that households are increasingly turning to could be true but really it is a debate for the the private rented sector because they cannot access Federation whether they feel that is a role that they the public sector or are probably staying in the would want us to fulfil. private rented sector for a lot longer than would have normally or previously been the case. Again, Mr McIntyre alluded to that in the previous session Q268 Mr Luke: On your submission in the section when he talked about the increase in Housing “ . . . continued decline in the supply of social Benefit payment to the private rented sector. It is not housing . . . ” you suggested that it is not necessarily necessarily in terms of the increase in private rented the case that the mixed funding regime, which is the sector rents or in terms of the number of people who favoured regime of Government, has had its would qualify for Housing Benefit who are turning intended eVect. Could you elaborate on that to the private rented sector for accommodation. comment? Northern Ireland Affairs Committee: Evidence Ev 109

27 April 2004 Mr Murray Watt and Ms Hilary Kyle

Mr Watt: I think it is perhaps a question of Mr Watt: Yes. I think the decent homes standard language. I think the fact that the target or the itself, if it was to be applied to Northern Ireland, at projected completions per annum have not been least would be bringing Northern Ireland into line met, whilst we are not putting the blame on mixed with England, Wales and Scotland, which may be a funding, I think that the transfer of the new build good thing. It would certainly raise the standards responsibility to housing associations has perhaps expected of housing in all sectors and that would be been diYcult and problematic for associations. I a good thing, also. It would result in improving think they have had to face a number of challenges housing conditions for households on low incomes, and obstacles, of which mixed funding is one. I think for lone and elderly people and other vulnerable we have alluded to the site and land availability and groups. One of the principal ways of doing that other issues there. One of the things which is pointed would be through enhancing thermal comfort. If we out frequently here, but certainly in these were to achieve that it would do an awful lot to discussions one of the suspicions that community contribute towards tackling fuel poverty and social representatives might have, is that mixed funding is exclusion by improving the housing conditions and an excuse for reducing the amount that Central enhancing the health and social welfare of many Government itself makes available to the new build people who are currently caught in a fuel poverty programme. Now whether that is true or not I would situation. I think that would be a good and desirable not like to hazard a view. Certainly there is a feeling, thing and would have been welcomed, certainly, or perhaps there is a feeling abroad, that the transfer when the Housing Executive said it would be their process was too much too soon for a small number intention to tackle these particular issues by the of associations to have to take on that full target of 2010 within their own stock. I think with responsibility and perhaps the Housing Executive regard to the moratorium on the day-to-day repairs, new build programme was halted prematurely. one of the things which happened there was perhaps community reps perhaps felt that the Housing Executive had lost a bit of its credibility as an Q269 Mr Luke: You made the point also that it eVective landlord as it was unable to meet its day-to- would be nice but it is unlikely that Government day repair obligations. I think there is a danger that would step back in and fund wholly the provision of there would be a knock-on eVect that what has to be social housing. You do make the point that the done now will not be done next year and there might Government should be more energetic in identifying be a subsequent failing in the system next year. some of the resources to fund things. What kind of Whether or not there are long-term consequences in developments do you think they should be looking terms of the condition of the stock I think would be Y at? very, very di cult to say. Mr Watt: I think the illustration I made earlier about the example in Dublin. I think there should be Q271 Mr Pound: Could I ask a very quick follow-up an opportunity through PPS12, for example, if it is on that specific point. We heard earlier on, and I working to the extent that it does, that sites and land think you heard earlier, on from the Executive that will be made available for aVordable land for social the moratorium ceased on 1 April and the tap was housing. Beyond that, I think there is perhaps a need then turned on. I have to say that I was surprised to for there to be more joined-up thinking across then hear the information that all of the works had Government departments and perhaps a closer tally been undertaken, which shows a remarkable of timescales and funding programmes across commissioning, an achievement process which is a departments because we seem still to have a certain stranger to me. From the tenant’s perspective, has silo mentality or to be caught up in a certain silo trap this happened? Is there still a backlog or have the with regard to that. Certainly it would be useful if moratorium blocked works all now been completed? there was demonstrably more togetherness in terms Ms Kyle: Certainly I would not like to contradict the of the way Central Government itself thinks and Chief Executive and what he said. sets targets. Q272 Mr Pound: Go on! Ms Kyle: The director answered that question. Q270 Mr Luke: Moving on to the quality of the Certainly I would probably agree that the works housing stock, I had some questions with the have been issued. Some of those works may be works Northern Ireland Housing Executive on that specific that they have allowed a particular period of time issue to do with the decent homes standard. In your for, like four weeks for completion. So if the job submission you make clear that you are required a pre-inspection before the work was issued disappointed as well that obviously almost a third of and they were allowed the four week period for the dwellings in Northern Ireland in that area do not completion then I would imagine that there may be reach these standards. You made the point, also, some which are in the process of being completed that you were glad to hear the response by the but have not actually been completed. That is only Housing Executive that they are now doing urgent the four week ones, obviously there are a number of non-essential repairs. The picture coming across is others, change of tenants, etc, which would have that you are unhappy with the way the repair service been completed. is going and it does have an eVect on the achievement Mr Watt: I think to be fair to an awful lot of the of the decent homes standard. Would you agree district oYces as well, because they are currently with that? going through the process of adopting Egan Ev 110 Northern Ireland Affairs Committee: Evidence

27 April 2004 Mr Murray Watt and Ms Hilary Kyle contracts for responsible maintenance as well, that Ms Kyle: I suppose I should also have said that in the relationship between the Housing Executive and terms of programme schemes that are on site in some of its contractors at the moment might be a terms of the Housing Executive’s consultation little fraught. I think there are additional diYculties standards, it allows for community representatives than simply the moratorium as to whether or not all to sit on the project team right from the word go of those repairs would be carried out by the end of right through delivery when they would go to pre- this particular month. site meetings and meet with the contractor on site and that has proved very beneficial as well. Mr Luke: I just want to make a comment on Q273 Mr Pound: Sorry, a naı¨ve question, forgive me allocations. I know that many tenants will not want for this: does the Housing Executive have a direct to get involved in allocating houses but many of works department or is all the work subcontracted? them will want to get involved in seeing that people Mr Watt: All the work is subcontracted. There is a who have got previous anti-social behaviour records direct labour organisation and it has some of the are not allocated houses. contracts for some of the repairs and maintenance work. Ms Kyle: It has to bid for the work like other Q275 Mr Pound: The main thrust of my questions contractors where it does exist. that I gave you notice of before the meeting, Chairman, have already been addressed. If I can just ask you a question that was asked earlier on Q274 Mr Luke: That was very useful to tease out. to get the unique perspective that you bring both Going back to a question put to you about the issue individually and on behalf of the tenants. Do you of tenants being involved in allocations, there are get any feedback from tenants that there is a diVerent views from diVerent parts of the country on frustration in the social housing development how that works in diVerent models, but one model field because of the current planning process? which has been adopted since Murray’s time in Mr Watt: I think there is general frustration and Dundee is that tenants are becoming much more perhaps a lack of understanding of planning involved in the delivery of the actual repair service processes. The community organisations who and, indeed, monitor the work of the repair service have been involved in planning processes are and do site visits to make sure that things are usually because of a response to a particular working. Although you have taken a neutral role on application and they have found the process to be the issue of allocations, do you not believe that there not as accessible as their experience with other should be a bigger role for tenants in the actual Government departments would be. In fairness performance of repair services? to the Department and the modernising of the Ms Kyle: Certainly. Maybe I misled the Committee planning processes themselves, and certainly the when I spoke about the involvement of community roll-out of the area plan that has been undertaken groups and what they wanted to get involved in at a over the last number of years, there has been an local level. There would be some that would be increased emphasis on bringing community involved in the sorts of things you have just representation and community views to feed into mentioned in terms of going out and monitoring those processes. There is increased access but when work has been completed, what the tenant with regards to the particular issue of social satisfaction is, and that is supplementing the housing I think that groups would probably feel evidence that the district oYce has. There are also a it is a bit of a frustration rather than something number of schemes where the community groups that they enjoy. have undertaken the post-scheme completion service whenever a programme scheme has actually Q276 Mr Pound: Is tenant involvement a positive been completed. There are a number of groups who factor here because frequently, in my experience, undertake to go out. Part of the pilot service delivery where tenants have been involved in precisely project is also about where there are vulnerable these sorts of areas their reaction has been more people who require emergency services, perhaps negative than positive and has tended to be they have got a burst pipe or perhaps their electrics oppositional rather than constructive and they have blown or whatever, it would be a local rep who tend to get more exercised in their task of would go along and turn oV the stopcock or preventing a development than actually whatever until the plumber comes out. Yes, they facilitating a development. I appreciate that you would be interested in being more involved in these do not have the same proximity pressures here sorts of things. thatwehaveinmypartoftheworldinWest Mr Watt: I mentioned the Egan contract processes London certainly, but is there a positive role for as well. I think it has been a huge forward step that tenants in planning along the lines you have community representations through the Housing talked about, particularly at the embryonic Community Network have been involved in stage? interviewing and assessing the contractors who are Mr Watt: There probably ought to be. coming into that and will be involved in the monitoring of those Egan contracts. Just to Q277 Mr Pound: Why is that? emphasise that, yes, the role for the community Mr Watt: I think one of the genuine diYculties, if representatives is ever increasing and entering into you like, is that because the Housing Executive is areas which previously they were not. relatively easy and open to tenant participation Northern Ireland Affairs Committee: Evidence Ev 111

27 April 2004 Mr Murray Watt and Ms Hilary Kyle and the people’s experience in dealing with them Ms Kyle: I do not think so. Certainly if you want any as a public body there is an expectation perhaps further information in terms of written information when they deal with other public bodies that it on the Housing Community Network we can furnish might be facilitated in the same way. I think when you with reports. it is not, because obviously the planning service is not structured along those lines, then I think Q279 Mr Pound: You should not encourage him! frustration sets in and there does tend to be a Ms Kyle: I forgot that point you made earlier. more confrontational attitude or response to Q280 Chairman: What we are finding is in this planning rather than actively seeking to inquiry we have taken a lot of evidence from participate. I think as well—it is probably well professional bodies and sometimes it is diYcult to documented elsewhere—other community give the tenant’s voice enough volume. Any organisations would feel that the planning system information that we receive which is on behalf of is perhaps weighted in favour of developments tenants or comes from tenants is extraordinarily which are not in the best interests of local useful to us. We do appreciate you taking the time communities. this morning. Thank you for the evidence you have given. Hopefully we will be publishing the report possibly towards the end of June. We shall make Q278 Chairman: You have been very generous in sure the comments you have made are included and your answers to us and in the written submission. they are useful to us. Thank you. Are there any issues that you expected us to raise or Mr Watt: Can I just thank the Committee for taking would wish to add, comments you would wish to add the time to hear us and meeting with us this morning. to the questioning that you have had? Chairman: Thank you. Ev 112 Northern Ireland Affairs Committee: Evidence

Wednesday 19 May 2004

Members present:

Mr Tony Clarke, in the Chair

Mr Iain Luke Mr Stephen Pound Mr Eddie McGrady Mark Tami

Memorandum submitted by the Department of the Environment

1. Introduction 1.1 The Department of the Environment has been asked to give oral evidence to the Northern Ireland AVairs Sub-Committee which is currently examining the eVectiveness of current housing provision in Northern Ireland with particular emphasis on social housing. 1.2 The main issues that the Sub-Committee wishes to explore relate to general Planning processes for social and aVordable housing as well as the overall Planning for housing development throughout Northern Ireland in the Regional Strategic Plan, including Planning Policy Statement 12—Housing in Settlements. 1.3 This Statement sets out the background to these issues.

2. The Planning System in Northern Ireland 2.1 The Planning System in Northern Ireland diVers greatly from that in the rest of the UK in that central government, through the Department for Regional Development and the Department of the Environment, carries out all of the functions which elsewhere are split between local and central government. In Northern Ireland District Councils have no statutory responsibility for Planning. 2.2 The Department for Regional Development (DRD) has responsibility for Strategic Planning which includes implementation of the Regional Development Strategy (RDS) and the preparation of guidance on the RDS through a series of Planning Policy Statements (PPSs). Two of the five PPSs which DRD are responsible for relate to Housing. These are PPS 12 Housing in Settlements, and PPS 14 Sustainable Development in the Countryside. 2.3 The Department of the Environment (DOE) has sole responsibility for planning control and the preparation of Development Plans. In addition, with the exception of the five PPSs which are being prepared by DRD, DOE is responsible for all other PPSs. Planning Service, an agency within DOE, administers its planning functions. When determining planning applications and preparing development plans DOE has a statutory duty to consult with the relevant District Council.

3. Development Plans 3.1 Development Plans, more commonly known as Area Plans in Northern Ireland and Local Plans in the rest of the UK, cover individual District Council areas or groups of Councils. Area Plans consist of a Written Statement and associated maps. The Written Statement sets out the strategy for the development of the Council area, allocates land for a variety of uses such as housing, industry and open space and contains policies to guide development. Area Plans are an important means of evaluating and reconciling any potential conflict between the need for development and the need to protect the environment within particular areas. 3.2 The Planning (Amendment) (Northern Ireland) Order 2003 requires that all new Area Plans are “in general conformity” with the RDS. It also introduces a process whereby Planning Service must seek from DRD statements that Draft and Final Plans, are in general conformity. The Draft Magherafelt Area Plan was the first to be submitted to DRD under the terms of the 2003 Order. A Statement of Conformity was issued on the 11 March 2004. This “Statementing Process” was introduced in recognition of the key role Area Plans will play in implementing the RDS at the District Council level.

4. Area Plans and Housing 4.1 Prior to the RDS each Area Plan estimated the likely need for additional housing in the Plan area over the Plan period. This changed when the RDS introduced the concept of Housing Growth Indicators (HGIs). The HGI for each Council Area has been set to facilitate a scale of local housing development that conforms with the overall Spatial Development Strategy set out in the RDS. Northern Ireland Affairs Committee: Evidence Ev 113

4.2 The distribution of the HGI within each Council area is a matter for decision through the Area Plan process, however, the actual HGI figure can only be altered through a review of the RDS. 4.3 The RDS also contains guidance on how the HGI is to be distributed. Area Plans are required to direct and manage future housing growth to achieve more sustainable patterns of residential development. In identifying new sites the aim is to make eYcient use of land by promoting more housing within urban areas and villages to avail of existing infrastructure and maintain compact settlement forms. The regional target is to locate 60% of all new housing within urban areas with a population of 5,000 or greater.

5. Area Plan Programme 5.1 Planning Service has a programme which aims to update current Area Plan coverage by the end of 2006. These new Plans will apply the RDS at the local level. The RDS however, recognises that it is impossible to align immediately every policy and Plan with the Strategy and that there will be lead in times for the alignment of policies.

6. Housing Land Availability 6.1 All of the extant Area Plans in Northern Ireland were prepared in a policy context which was very diVerent to the approach now advanced by the RDS. Previous regional policy provided for an over allocation of housing land to allow for flexibility in choice of site and to obviate any problems in relation to land availability or infrastructure provision. As a result Northern Ireland, generally, is currently well catered for in terms of housing land and the supply position is reviewed annually through the Housing Land Availability Monitor. 6.2 The primary purpose of the annual Housing Land Availability Monitor, which is carried out by Planning Service, is to inform the Area Plan programme. However, the results of the Monitor are also used to identify any potential shortfall in land supply and to inform house-builders on the overall supply position.

7. Social Housing (Pre RDS Position) 7.1 As stated in paragraph 4.1 the extant Area Plans which were prepared prior to the RDS were responsible for assessing total housing need for each Plan area. This assessment took account of the likely need for social housing, however, land was not specifically zoned for this purpose. Rather, the aim was to ensure that suYcient land was identified to meet all housing needs. As an extra precaution over-zoning allowed flexibility in choice of site in order to ensure that housing providers had ample opportunity to meet all identified needs.

8. The implications of the RDS and PPS 12 for Area Plans and Social Housing 8.1 The RDS and Draft PPS 12,1 both the responsibility of DRD, have already had an influence on the Area Plans which are presently being prepared. Plans are now required to include policies to provide a housing choice by achieving a mix of tenures and house types in order to help create more balanced communities. As a consequence, under new arrangements, Plans are now informed by a Housing Needs Assessment prepared by the Northern Ireland Executive within the context of the HGIs contained in the RDS. 8.2 The Draft Ards and Down Area Plan, published in December 2002, was the first to introduce this new approach. This Plan contains a dedicated policy on social housing provision. The Draft Magherafelt Area Plan, which is due to be published in early May 2004, will also contain a policy on social housing. 8.3 Planning Service is presently involved in discussions with DRD, the Department of Social Development (DSD) and the Northern Ireland Housing Executive in relation to the finalising of PPS 12. The outcome of these discussions will be reflected in the published PPS 12 and in future Area Plans which are likely to contain additional policies on Social Housing.

9. Planning Control—The Quality Initiative 9.1 In January 1996 the Minister for the Environment introduced the Quality Initiative to Northern Ireland with the aim of raising awareness of the importance of good design and quality in the built environment. This Policy Initiative requires the Department, as the regulator of land use, to secure a high quality of design, layout and landscaping for new residential development. The Initiative highlights the need for comprehensive planning and design of sites, particularly for larger developments and requires new housing layouts to incorporate open space, walks and cycle-ways and to promote public transport provision.

1 Draft PPS12 was published by DRD for consultation in November 2002. Ev 114 Northern Ireland Affairs Committee: Evidence

9.2 The Quality Initiative is supported by a wide range of policy and guidance including PPS 1—General Principles, PPS 7—Quality Residential Environments and PPS 8—Open Space, Sport and Outdoor Recreation. These PPSs are augmented by policies contained in Area Plans, by guidance set out in Development Control Advice Note 8—Housing in Existing Urban Areas and in the joint DOE/DRD publication Creating Places—Achieving Quality in Residential Developments. 9.3 These documents combine to provide the Department with a comprehensive suite of policies which aim to ensure that new housing developments provide a quality environment. 9.4 The Quality Initiative applies to all housing regardless of tenure. 22 April 2004

Memorandum submitted by the Department for Regional Development

1. Introduction 1.1 The Department for Regional Development has been asked to give oral evidence to the Northern Ireland AVairs Sub-Committee which is currently examining the eVectiveness of current housing provision in Northern Ireland with particular emphasis on social housing. 1.2 The main issues that the Sub-Committee wishes to explore relate to general planning processes for social and aVordable housing as well as the overall planning for housing development throughout Northern Ireland in the Regional Strategic Plan, including Planning Policy Statement 12—Housing in Settlements. 1.3 The purpose of this statement is to set out background to these issues.

2. Context 2.1 In terms of planning functions, the Department for Regional Development (DRD) has responsibility for strategic planning which includes implementation of the Regional Development Strategy (RDS) and the preparation of further guidance on the RDS through a series of Planning Policy Statements. The Department of the Environment (DOE) has responsibility for operational planning matters, including the preparation of development plans and the processing of planning applications. 2.2 The RDS sets out strategic guidance, which is of direct relevance to development plans and is a material consideration in the processing of planning applications. DRD and DOE are working together on monitoring to ensure that the planning framework for the region is up-to-date and relevant.

3. The Regional Development Strategy 3.1 The RDS is a strategy to guide the future development of Northern Ireland to 2025. The pivotal section is the Spatial Development Strategy, which is a hub, corridor and gateway framework. The aim of the hub, corridor and gateway approach is to achieve balanced and sustainable growth within the region by developing: — a compact and dynamic metropolitan core centred on Belfast which is the regional gateway; — a strong North West regional centre based on Londonderry; and — a vibrant Rural Northern Ireland with balanced development spread across the network of hubs/ clusters based on the main towns which will have a strategic role as centres of employment and services for urban and rural communities. 3.2 The Strategy is based on the approach of Plan, Monitor and Manage, which will provide the appropriate level of flexibility to deal with changing circumstances. By their very nature, assumptions and projections involved in assessing future needs are complex and may be subject to unforeseen future changes. This is particularly the case in relation to population and housing projections. As a consequence, the Strategy will be the subject of a major review in 2010 and a focused assessment in 2005–06. 3.3 In relation to future housing provision, one of the aims of the Strategy is to facilitate the supply of additional housing to meet the projected needs of the region over the next 25 years. Accordingly, the Strategy provides for up to 160,000 additional dwellings up to 2015 and 250,000 additional dwellings by 2025. 3.4 The main assumptions made in forecasting regional housing needs were: — allowance for new household formation; — allowance for vacancy rates in the housing stock; — allowance for second homes; and — replacement of stock loss due to demolitions, abandonment, changes of use and conversions. Northern Ireland Affairs Committee: Evidence Ev 115

3.5 In order to help maintain a balance of growth between the Belfast Metropolitan Area and its hinterland and the rest of Northern Ireland, the projected regional allocation was first divided between the Belfast Metropolitan Area and its hinterland (77,500 dwellings) and the North, South and West of the region (82,500 dwellings). These figures were further allocated to the six Belfast Metropolitan Area districts and the remaining District Councils in the region. The Housing Growth Indicators for each district have been set to facilitate a scale of local housing development that conforms with the overall Spatial Development Strategy. 3.6 The allocation of the Housing Growth Indicator to specific locations in a district is a matter for decision through the development plan process taking account of the strategic planning guidance in the Regional Development Strategy. An important consideration in this allocation process is the need for a complementary urban/rural balance which will meet the need for housing in the towns of the district and the needs of the rural community living in the smaller settlements and countryside. 3.7 The relationship between the RDS and development plans is important in achieving strategic objectives set out in the Strategy. The Planning (Amendment) (Northern Ireland) Order 2003 places a requirement on DOE in preparing development plans to ensure that those plans are in general conformity with the Strategy. The Order also makes provision for DRD to issue statements on conformity at two stages in the development plan process, the first at draft Plan stage and the second before adoption of the Plan. 3.8 In this context, the first draft development plan which the Department received was the draft Magherafelt Area Plan and on the 11 March the Department issued a statement that the draft plan was in general conformity with the RDS. 3.9 As already indicated, assumptions and projections, particularly with regard to housing are complex and can be subject to unforeseen changing circumstances. Concerns have been raised, mainly from district councils, over the adequacy of the regional housing figures. These concerns focus on the fact that there appears to be a mismatch in certain areas between local demand and the figures which have been set in the RDS for Council areas. Accordingly, the Department has commenced a review of the housing figures which will consider the adequacy of both the regional housing figure and the allocation between District Council areas. This will allow an assessment of local “hot spots” and the circumstances which are impacting on housing provision at the local level. The objective in this work will be to ensure that there is an adequate supply of housing land to meet local need in both urban and rural areas in accordance with the approach which is set out in the RDS.

4. Planning Policy Statements 4.1 Under the Strategic Planning (Northern Ireland) Order 1999, DRD is tasked with the preparation of providing policy guidance and advice. Accordingly, the Department is currently preparing five Planning Policy Statements, two of which deal with housing, PPS 14—Sustainable Development in the Countryside and PPS 12—Housing in Settlements. 4.2 PPS 14 is in the early stages of development and will address the issue of rural housing. The amount of rural dwellings being approved in Northern Ireland is more than double that approved for the whole of Great Britain. In 2002–03, 76% (6,911) of all residential planning applications being approved were rural. The challenge is to balance concerns over the sustainability of this high-level of approvals with the need to sustain rural communities. 4.3 The issues paper for PPS 14 will be issued for consultation this side of the Summer. The final document is programmed for December 2005. 4.4 PPS 12 reflects the sustainability objectives expressed through the RDS in relation to meeting housing needs. In particular, the focus of the document is on the achievement of a balanced and integrated approach to meeting regional housing needs. The themes underlying this are: managing housing growth and distribution, supporting urban renaissance and achieving balanced communities. 4.5 This Planning Policy Statement introduces a series of processes for allocating housing land, through the preparation of development plans, which are the main vehicle for the delivery of housing growth, to ensure that the full range of housing needs are met. 4.6 The Draft PPS 12 was issued for a three-month consultation period in November 2002. The document is being redrafted in light of comments received. This process involves liaising with colleagues from NIHE, DSD, and DOE Planning Service. The final PPS 12 is to be issued in the Autumn 2004. 4.7 Although the lack of aVordable housing is not as pronounced as in the South East of England, DSD and NIHE have highlighted that it is an emerging issue in Northern Ireland. While house prices in Northern Ireland remain lower than in the South East, the rate at which they have risen is one of the highest in the UK. The lack of aVordable housing in Northern Ireland is currently a localised issue with a number of “hot spots”. In some cases this can be associated with the growth of second home ownership, especially along the North Coast. 4.8 The PPS recognises that the availability of aVordable housing is an element of the Government’s drive to help create mixed and inclusive communities. Ev 116 Northern Ireland Affairs Committee: Evidence

4.9 The delivery of social and aVordable housing in order to meet an identified housing need will be dealt with in PPS 12. The Northern Ireland Housing Executive is providing an assessment of local housing need to inform development plans. It is expected that the development plan will address any identified need at a local level but the exact delivery mechanisms have yet to be finalised.

5. Conclusion 5.1 The Department is aware of the need to ensure that there are adequate supplies of land to meet local need, including social and aVordable housing in both urban and rural areas. 5.2 The Department is actively taking steps to address these important issues through three main areas of work: — The statementing process with development plans; — The review of housing allocations; and — The preparation of Planning Policy Statements. 5.3 This involves close and collaborative working with DOE, DSD and NIHE to ensure that actions and policies are relevant to deal with the issues which are emerging. 22 April 2004

Witnesses: Mr Pat Quinn, Director of Policy and Planning Division, Mr Jim Thompson, Policy and Planning Division, Department of the Environment, Mr Mike Thompson, Director of Regional Planning and Transportation Division, and Mr Des Stephen, Deputy Director of Regional Planning and Transportation Division, Department for Regional Development, examined.

Q281 Chairman: Gentlemen, you are very welcome requirement is that we pass it to DRD who issue us and thank you for taking the time to be with us to with a certificate saying that the work we are doing answer questions of the Sub-Committee in respect of is in general conformity with their strategic our inquiry into social housing. Could I get straight requirements. That legislation has made it clear to to the point and ask the first question and perhaps all what the respective roles are and that has been the most important question: both the DRD and the helpful. DOE have separate and distinct responsibilities in relation to the planning functions that impact on delivery of social housing. and yet delivery of those Q282 Chairman: We did know that both must inevitably require close and eVective departments made separate submissions and there collaboration between the two departments. How was a significant amount of overlap. I suppose that good do you think that that collaboration is between shows that you have a joint agenda. Let me tease your two departments in the spirit of joined-up that out a little bit further and say that the government? How close are you corroborating? Department of Social Development and others, Mr Mike Thompson: We agreed earlier in a joined- including the Construction Employers’ Federation, up manner that I would lead on this particular point. have identified land availability and planning delays We work very closely together. We talk practically as significant and serious factors restricting delivery on a daily basis with each other. We recognise the of social housing. What actions have your importance of joined-up working. Ourselves in the departments taken separately or in collaboration to Department of Regional Development have address those issues that have been raised by the responsibilities for the overarching regional DSD and the Construction Employers’ Federation? development strategy and the preparation of Mr Mike Thompson: In terms of overall land strategic planning policies. Our colleagues in the availability, the DRD responsibility would be the Department of the Environment, through planning housing growth indicators that are contained in the services, are responsible for area plans, development Regional Development Strategy. We are very control and operational planning policy. Certainly conscious that there have been problems with those we as oYcials work very closely. We are conscious housing growth indicators in a number of localities that the structures we work in perhaps, if we had a in Northern Ireland. For instance, recently in choice, would not be the structures that we would Magherafelt and Northern Area where there is choose. It is not our responsibility for structures. bottom-up evidence from the ground showing that Our job as civil servants is to make those structures these top-down figures do not seem to be matching. work to the best of our abilities. That is our We have just instigated a formal review of that respective aim and our view in the DRD is that we process where we are looking again to make sure we have very good and strong constructive working get it right. We are out now to public consultation to relationships with our colleagues from DOE. ensure that we get the information from the ground Mr Quinn: May I add that the legislation also helps. and that we get our housing allocations right. That We had new legislation in the spring of 2003. That is an absolutely overarching situation to make sure clearly sets out for everyone what the respective roles that the housing allocations are right, that we make are. That is helpful to us. We clearly know who is sure that the land is available, the right amount of doing what at each stage. The legislative land in the right place at the right time. Northern Ireland Affairs Committee: Evidence Ev 117

19 May 2004 Mr Pat Quinn, Mr Jim Thompson, Mr Mike Thompson and Mr Des Stephen

Mr Quinn: From the DOE perspective, we do not than happy to go along with the working Tripartite have generally in Northern Ireland a land supply Group if particular needs arise and there is a problem. We carry out in planning service, an particular issue that is cropping up when it would be annual monitor of the land that is available on which useful for us to be there. Our perspective in terms of to provide housing. There are two types of land that that is probably horses for courses. We would we monitor. Firstly, there is the land specifically probably clutter it up and get in the way of the main earmarked or allocated in the development plan function of that group. Having said that, we are keen process for housing. That goes through a statutory to work with it if there is a need and we are happy to process. This carries a designation: “This site is do so. suitable for housing.” As well as that, we monitor Mr Quinn: The DOE point of view is very much the other land. This is land which has not actually been same. We are already working with those identified in the area plan process for housing but organisations on issues of mutual interest. My through whatever happens it comes forward and colleague Jim Thompson has been to that Tripartite gets planning permission for housing. It could be an Group to deal with certain issues, but our role institution that carries surplus land; it could be an remains that we will work with them in a very employment training use that, shall we say, fails to positive way and be there when there is a need to be function and needs a new use. We have generally an there. We might get in the way on many of the issues adequate supply of land. The issue we find in talking they deal with. to the social housing providers is that the private Mr Stephen: May I add that the Planning Liaison sector in Northern Ireland is very robust. We have Group, of which we form a part with the Housing now gone up from 16,000 planning applications in Executive and DOE, in fact has benefited from those the mid 1990s to this year 33,000. There is a robust joint working arrangements. We have looked at best construction sector there. We are hearing from practice; we have looked at housing needs social housing providers that they are struggling to assessment models; and we have tailored the compete in the market to acquire land. That is preparation of PPS12 to many of the joint slightly diVerent from there being a land supply agreements that have come from the Planning problem. So the land is there but we have a very Liaison Group. We have been able to solve some of robust and active private sector competing for it. We those emerging problems as they arise, rather than are told by the social housing providers that they are waiting to the draft consultation stage on the PPS struggling to compete in that market. That is our development. understanding of what they are saying. Q285 Chairman: If the department moves on to look Q283 Chairman: That probably explains why in the at the planning processes, I think there would be submission of the DOE, Mr Quinn, you did say that general agreement that the implementation plan on you felt that Northern Ireland was well-catered for modernising planning processes will reduce the level in terms of housing land but why the DRD recognise of time currently it takes to achieve planning V in what you say a di erent problem, which is not approval. It has been suggested that the relationship about land availability but about land use. between the planning service and district councils Mr Mike Thompson: It is about where the land is to causes unnecessary delay. What steps have your try and ensure that we have a sustainable growth in departments taken or can they take to reduce further Northern Ireland and, relating back to the Regional those delays? Development Strategy, to get the balance right for Mr Quinn: That is a major issue. I tried to set out in housing allocations that subdivide Northern Ireland my paper to the Committee that we have a diVerent and is there the right amount going to each of the situation in Northern Ireland from most other areas? jurisdictions whereby planning is essentially a function of central government. In most other Q284 Chairman: Both of you will be aware of the jurisdictions it is mainly a local government function Tripartite Group that has been set up between the with central government providing strategic input. DSD, the Housing Executive and the Federation of Clearly that is an issue for some of the councils we Housing Associations. Do either of the groups feel work with. Up until 1973, they were the planning that it should not be tripartite, that it ought to be authority. We find that generally we have good wider and that both of your organisations, both of relations with councils but diYculties arise where we you, should be included within that partnership? carry full responsibility and are answerable for each Mr Mike Thompson: Our view on it is probably not. decision. Obviously you can have elected members We have very good close working relationships with on councils who are under tremendous pressure our colleagues in DSD and our colleagues in the from constituents who are perhaps opposed to the Housing Executive and indeed wider housing planning line on something. There can be an issue associations, but our sense and understanding of there. In our situation we do a number of things. that Tripartite Group is that it was set up for a Firstly, working through NILGA, the Northern particular reason. Sitting beside it is a Planning Ireland Local Government Association, we are Liaison Group that includes ourselves and DOE trying to do three things. Firstly, streamline and colleagues and folk from the housing environment. agree for the very first time a standard working We think that the planning issues relating to housing approach with all 26 councils. As this has grown in are probably best dealt with in that Planning Liaison an organic way, each of the 26 councils consults with Group. Having said that, we are obviously more us in a diVerent way. We are working to put Ev 118 Northern Ireland Affairs Committee: Evidence

19 May 2004 Mr Pat Quinn, Mr Jim Thompson, Mr Mike Thompson and Mr Des Stephen consultation on to a standard footing with the constructive. We are open on this but the aim is to agreement of councils working through NILGA. speed up the process to allow us to concentrate on Secondly, we have now signed a pre-contract with the major applications which give rise to concerns. Hewlett Packard for them to provide us with a fully electronic planning system for Northern Ireland. Q288 Chairman: Given the basis of our inquiry and This has tremendous advantages for us. We can then the evidence that we have received from other make more information available to councils. A file bodies, are either of your departments considering is opened on a certain proposal and that is available changes in legislation which would impact on social electronically to the council. We then send them our housing provision? opinions on applications at a preliminary stage. It is Mr Mike Thompson: From the DRD perspective, I not just the opinions that are available but all the file do not think there is any legislative change that we and the drawings are available electronically to view could make that would have a positive impact in in the chamber when we have our discussions. The terms of social housing. Obviously we are looking at aim is to have those discussions assisted by changes in policy. We will probably come to that electronics but a very important third leg is that a when we talk about Policy Planning Statement 12. very large number of planning applications in From the legislative perspective of DRD, I think the Northern Ireland are for minor extensions to answer would be “no”. dwellings: a front porch or a rear extension. Those Mr Quinn: Our point of view is that we also look to tend to give rise to very few concerns from the policy changes. The policy changes are kicking neighbours. We would like to agree with council’s now; they started in December 2002. We published delegated powers where perhaps the chair person more proposals for Magherafelt in April 2004. If and the chief executive could look at those those polices work in those areas and start to work applications on a schedule electronically and say to universally in Northern Ireland, then we do not need us, “There is no objection to these applications from legislative change but if those policies aimed at the council”. That would allow ourselves and the 26 providing more social housing give rise to problems councils to debate at the monthly meetings the major in terms of implementation and hence provision, applications clear of all the other minor proposals. then we will look to see if we need to strengthen our We want to achieve those things. We will need the legislation to make sure that in negotiating for full co-operation of the councils. We think we can increased social provision we have the powers to get that. There is an onus on us to bring forward a make sure that happens. The jury is out on this now constructive approach here that will save time. We because we only published our first policy in have got to recognise that planning takes place in an December 2002. environment where there are environmental conflicts. A neighbour can be very opposed to a minor extension or a major proposal and can Q289 Mr McGrady: The subject matter is the obviously lobby the council on that and there can be provision of social housing, obviously. It is in that issues about that. context I ask the question: to what extent do you believe that planning changes or planning policies have contributed to the shortfall in social housing Q286 Chairman: Can I just check that? When you which has been experienced over the past number of are talking about non-contentious planning years since the transfer from the Executive to the applications for the porches and the small Y housing associations? In fact, there is a suggestion extensions, are you saying that the o cers should that the planning system actually reduces the land have delegated plans for approval or that a list of availability for social housing and the corollary is non-contentious planning applications will be that it pushes up the prices, which frustrates the compiled for the committees to deal with as one item provision of social housing. How do you see at their monthly meeting? planning and the changes anticipated in planning Mr Quinn: What we have proposed is that a list of actually helping to address this problem? non-contentious applications, which are minor in Mr Mike Thompson: Our perception is that the nature, would go to the council and that the council housing market is a very complex market. There are would agree, or they may not, that the chief many factors impacting on it: macroeconomic executive and the chair person or a number of factors such as interest rates, etcetera. Quite clearly, members could agree to approve those applications. planning does have an impact in terms of the It would be a matter for the council whether they availability of land. My colleague Pat Quinn and I agreed to that or if there are some other have explained that our perception or our arrangements they want to put to us. We are happy understanding is that, in terms of land availability in to respond to other arrangements. The idea is that Northern Ireland, there is no problem. The issue is the council is fully informed and consulted properly social housing and at times the social housing but at the same time the minor applications receive markets being priced out by the private housing a proportionate amount of time. market. This is one of the very issues that we are looking at very closely in terms of our Q287 Chairman: This is ongoing. We shall watch considerations, again with colleagues from the with interest the changes. DOE, DSD and the Housing Executive in terms of Mr Quinn: Yes. The onus is on us to produce Policy Planning Statement 12 where we look to see something constructive and for councils if they if we can introduce new policies that might be able cannot agree to come back with something equally to help address the very issue that you have identified Northern Ireland Affairs Committee: Evidence Ev 119

19 May 2004 Mr Pat Quinn, Mr Jim Thompson, Mr Mike Thompson and Mr Des Stephen through identifying a percentage of land available to Q291 Mr McGrady: To jump to a subject that Mr be set aside for social housing. That is a very live Quinn referred to, and that is hot spots or problems, issue we are looking at. We hope to bring in new there is a mishmash between demand and policy on that. availability, and we know or sense where these can Mr Quinn: Despite the buoyant market, economic be. The policy also indicates that 60% of the new researchers keep ringing me up and saying, “What is housing provision should be in brownfield sites. the increase in planning applications in Northern Normally they are not family-friendly type Ireland?” We say that they have doubled in less than developments, which I think is required and eight years. Economic researchers tell us that is one preferable for social housing provision. How do the of the key factors they look to in terms of improving departments reconcile these what I see as almost the economy. What else have we got? We have contradictory demands? Would you also comment interest rates probably at a historic low but with a on whether you think that it is realistic to put 60% of slight rise recently. There are relatively cheap the development aid, if you like, in the basket of the mortgages. While we still have problems of long- brownfield? term unemployment in Northern Ireland, which we Mr Mike Thompson: The target of 60% for the do not want, unemployment generally is going brownfield was in the Regional Development down. We have more and more people who wish to Strategy and it was strongly endorsed by the then own their own properties. We presently stand at 70% Northern Ireland Assembly. To date we are hopeful owner-occupation. We then have land allocated for we will be successful in achieving that in 2001 at 62% housing. In Northern Ireland we have land owners and in 2002 at 63%. The issue then is about house that we think are saying, “I will oVer my site to the sizes and the types of units to be constructed on private sector”. There may be issues to do with the those brownfield sites. Our sense is that household perception of valuation, that there is a higher size is reducing and therefore there is increased premium from the private sector. We found that demand for smaller units. Having said that, as you when the economy was not doing as well a number have said, social housing often is for family housing of years ago, we had landowners approaching us accommodation. Our sense is that the market will saying, “I am going to oVer my land to the social lead and, if there is a demand for family housing, the housing sector”. We have not experienced that market will provide that family housing. Certainly recently. We are told by the social housing providers from our slightly anecdotal evidence of Belfast, there that they are not experiencing that. I think a number is a number of examples like Lewis Square in East of things are happening in Northern Ireland, an Belfast, or Dunmore in North Belfast, or Ardenlee, economy that, thankfully, is improving all the time, a development in the Ravenhill Road or the but new issues arise from that. Wellington College development in South Belfast, which all have a significant portion of family houses. We are monitoring closely the impact of that brownfield target against such factors as the impact on social housing and family housing. Our perception so far is that it is OK. Q290 Mr McGrady: You are in a very lengthy Mr Quinn: I think you are right to mention statistics. process of the infamous PPS12. A little quote from We are in a brownfield first era and have been there that says that you are engaged in a series of processes since 2001. There are a couple of points. The for allocating housing land to be introduced by proportion of brownfield is at 60% or more if that PPS12. Is it fair to ask at this stage what consultation can be achieved. Obviously if you turn to the other you have had in this respect that you in fact allocate side of that, it still means there is a proportion going land designation specifically to social housing on other than brownfield towards greenfield. Added demands rather than leaving it to the market forces to that, we still have significant greenfield reserves to determine? from extant area plans that are already in place. Mr Mike Thompson: One of the premises behind There are still reserves in many areas in Northern PPS12 is to have a look at this very issue. The process Ireland. Just to reinforce what my colleague said, we we envisage is that there is a housing needs are increasingly finding that especially where we assessment in a particular area being undertaken by have the larger brownfield sites, family housing is our colleagues from the Housing Executive who are going in there because there is a demand for it. closest to the ground and best placed to do Obviously the developer wishes to sell on the something like that. Through that housing needs properties as quickly as possible, so they are assessment, a need for social housing has perhaps responding to demand. I think you will find that on been identified, and then within the area plan the bigger brownfield sites, and there is evidence process, a percentage of land is set aside specifically already of this happening in Belfast and in Derry, for social housing. Our view very much is that that you are getting a mixed tenure and you are also something we want to push. We are very conscious getting mixed house types. We are getting that is something that has been tried before in other apartments but we are increasingly getting areas; it was tried in the Republic of Ireland and it townhouses and houses on that land. has been tried in England. It is a diYcult area we are heading into. You alluded to the lengthy process; that is part of the reason why we are having to take Q292 Mr McGrady: Can I take it from that that a bit of time on it because of the diYculties and there is an ongoing study, an ongoing assessment, of complexity of the topic. the impact of the 60% of use to brownfield? I think Ev 120 Northern Ireland Affairs Committee: Evidence

19 May 2004 Mr Pat Quinn, Mr Jim Thompson, Mr Mike Thompson and Mr Des Stephen that is what Mr Mike Thompson said. We can take 55%, 65%, or whatever. The process of review of the that as read. Finally, the Draft Equality Impact house growth indicators would give us the answer to Assessment, the PPS12, states that: “PPS12 should that question. have a positive diVerential impact on all sections of Mr Stephen: May I perhaps additionally clarify that the political divide.” Could you comment on the the brownfield definition in GB in PPG3 is nature of the diVerential impact? previously developed land. In Northern Ireland, by Mr Mike Thompson: Mr McGrady, thank you for definition, within the RDS it includes all land within pointing that out. I think it is fair to say that that last the urban footprint, which is a slightly more statement is wrong and that draft EQIA should generous interpretation and definition. In other really have read that there would be positive impact words, it could include vacant buildings, previously on all sections of the political divide rather than developed sites and other vacant land within that “positive diVerential impact”. I think the mistake footprint. Whilst we may be talking in terms of 60%, also refers to the religious section and the race in practice it is slightly easier to achieve that target sections in the EQIA. It was a draft and you are than perhaps if the tighter definition of the mainland absolutely right to pick up that error in it. Our sense were followed. That is something that was enshrined is that the PPS12 will have a positive impact on all in the RDS and the figures that Mr Thompson has sections of the community, irrespective of their quoted of 62% in 2001 and 63% in 2002 are in fact political views. That implied having a diVerential the RDS definition. impact on one side more so than on the other side. That draft is wrong, in my view. Q295 Mr Pound: Land within the urban footprint that could be covered by that presumably would also possibly be covered by metropolitan open land, Q293 Mr McGrady: In the provision of social public open space or other restrictions, could it not? V housing, as we now know, there is that di erential Mr Quinn: Yes. To make sure that we did not impact, so while may have accidentally got into your threaten our valued open spaces, which are a report, it does not obviate the fact that it exists. Have tremendous asset to the community we in DOE you any intention of addressing this particular promoted a new policy. This planning policy problem of the diVerential impact that is actually statement makes it absolutely clear that open space happening today, never mind when PPS12 comes is not included in the definition. So we promoted at out in several years’ time? the same time a planning policy statement on open Mr Mike Thompson: We hope to have PPS12 out space and recreation. This sets out very clearly that later this year. We are aiming for the autumn. In this type of land use is not to be sacrificed for terms of any impact on diVerent sections of the housing. community, it is one of the fundamentals of any Mr Pound: You seem to have got the best of both good policy in Northern Ireland that it goes through worlds I think. I congratulate you on it. that process of equality impact assessment to see what the impacts are, to see if there are any negative Q296 Mr Swire: The report of the Review of impacts or positive impacts in the whole process. Housing Supply, the Barker Review, which was That will be part of the draft EQIA that was put out published, as you know, in March of this year, made to consultation as part of the finalisation process a number of contentious, I would argue, of PPS12. recommendations concerning the planning system. Which, if any, of those recommendations in the Q294 Mr Pound: I just want to pick up a point about report are appropriate to Northern Ireland, given the brownfield sites. As you know, the Construction the uniqueness of its planning system? Employers’ Federation and various other groups Mr Quinn: We read with interest the Barker Review and had the opportunity to discuss it with some feel that the 60% figure is more GB-oriented and in colleagues in the ODPM, which has been helpful to fact probably influenced by policy over here. You us. We think we have to be slightly careful with it. answered the question that Mr McGrady asked I Obviously it came about in what looks like an under- have to say very professionally and a lot better than supply of land situation, which is prevalent in parts most politicians would have done. I was trying to of England especially. We do not have that situation establish, and I do not think you can answer this because we come from a diVerent planning regime collectively, whether you feel that the 60% and the planning policy in Northern Ireland was to brownfield ratio is appropriate in Northern Ireland promote, until 2001, if you like, a generous supply of or were you saying that whether it is or is not, you land because of particular problems that we had are going to work around it? with a weak economy. So we come from a situation Mr Mike Thompson: The target was set by where we have brought with us land reserves; we still agreement with the Northern Ireland Assembly, so have those in the planning system. We do not have our view is that we measure our performance against the situation of under-supply. Our statistics from it. In the last two years we have done better than that our annual monitor show that the housing land is target. As to the question of what the right target there. We do have hot spots, to which Mr McGrady should be, we are reviewing the housing growth referred. We think on the private sector side, on the indicators across Northern Ireland and out of that market housing side, we have to be slightly careful process certainly would come a view as to whether or about that. The Report talks about over-allocating. not the 60% figure is right or whether it should be We are already in that position for historic reasons. Northern Ireland Affairs Committee: Evidence Ev 121

19 May 2004 Mr Pat Quinn, Mr Jim Thompson, Mr Mike Thompson and Mr Des Stephen

In the social housing sector, I think there are issues increased public transport, the right-hand turning raised there that we fully share an interest in and that lanes, and the new accesses. We are very much at is about how we enhance and increase social housing that stage. output. We are watching very carefully that debate coming out of London because obviously that issue faces us as well. We have to be slightly careful in that Q299 Mr Swire: Community centres? we understand the problems that are being looked at Mr Quinn: No, it is more land for those facilities. We by that report are slightly diVerent in the south of are at the stage through PPS12, and my colleague England compared to Northern Ireland. will want to mention this, where we must now ask: do we go further and decide that the policy now Q297 Mr Swire: Can you say something about social needs to change so that developers must adopt what housing versus private housing and your views on is the standard in England, Scotland and Wales? We integrated communities and what attention you are are actually at this stage now. There are two debates paying to design, quality build, the vernacular and here. One is: land is becoming available and through so forth? normal planning negotiations we can achieve proper Mr Mike Thompson: We go back to our staring social housing provision. Do you leave the situation point in all of this, the Regional Development alone or do you decide you need more of a stick Strategy, and this idea of mixed tenure in terms of rather than a carrot? My colleague might want to say being something we should aspire to and aim for. something about the approach that we may go That overarching strategy certainly is set there. In down. terms of the PPS12 on which we are actively Mr Mike Thompson: Again, this is something that working, again there is that idea of mixed tenure and will be in PPS12 and it is a very live issue for us as we possibly saying to developers that a percentage of a work through it with our colleagues in the DOE, the particular site should be social housing to mix up the Housing Executive and DSD. We are very conscious development so that there is mixed tenure there. We of what happens in the south of Ireland where they are looking at that. Certainly, we think it is worthy introduced this 20% and the developers decided just to aim for that and we are certainly pushing in that not to build. We are trying to learn from that and to direction. get something that is a bit more fine-tuned and Mr Quinn: At a more detailed level, we take our ingrained for the particular needs in particular areas, guidance from DRD’s strategic authority and it is to again trying to get something that would work then, achieve a mixed tenure but you will note in my as Pat Quinn has said, to see if it is possible that we submission to the Committee that since 1996 we can work closer with developers. I think the carrot is have been driving at quality initiatives in Northern better than the stick but the stick is always useful to Ireland. We felt in Northern Ireland that there was have in the background in case the carrot just does a sameness about our housing. While it was of good not quite work. This is a tricky point. We are just quality, one town’s housing looked very similar to trying to get the balance right. This is one of the that of another town, yet the towns were of very things that we are grappling with collectively at the diVerent scale and character. Since 1996, we have present to see if we can get that. been driving the Quality Initiative. As I have said in Mr Stephen: I think the starting point is the housing my paper, that applies to all housing regardless of needs assessment and the Housing Executive agreed, tenure. We want to meet housing needs through as part of this process, that they would prepare providing mixed house types, mixed tenure, and housing needs assessments where development plans most importantly on a quality residential are being commenced. We are introducing through development that will stand the test of time. That is PPS12 a generic policy in development plans to something we are driving very hard at in Northern provide for up to 20% to meet the specific need in Ireland and we are working very hard with our that locality. We are also prepared to go as far as major developers to achieve that. zoning land to meet the social housing need within the planning period. As Mike Thompson has said, Q298 Mr Swire: Can you say a little bit about any currently we are looking at the success of the co- problems or opportunities you have encountered in ownership scheme, which is 50% private equity and securing developer contribution for aVordable 50% public, as a basis for the provision of more housing and is it similar to GB whereby developers aVordable housing. That is the live issue that we are are keener to give you the money towards building discussing with colleagues at the moment. It will social housing as long as it is not on the private estate require local delivery mechanisms and we are which they are developing? working through that. In GB one of the successes Mr Quinn: We really are not at the stage that the has been the very proactive use of Section 106. We English planning authorities have achieved yet. We have similar Article 40 agreements. They have not are at the stage where it is policy in Northern Ireland been used widely, in our view, in Northern Ireland. that the contribution from developers, whether it be Together with DOE, we do envisage some wider use social housing providers or private sector providers, of those in the future. That will assist, to use the is to provide the infrastructure that is required words carrot and stick, to force developers to through the need generated on their development. provide social and aVordable housing within We are very much at the hard and soft infrastructure developments in future. That will come with the stage: It is the open space, the bus lanes, the policy of PPS12. Ev 122 Northern Ireland Affairs Committee: Evidence

19 May 2004 Mr Pat Quinn, Mr Jim Thompson, Mr Mike Thompson and Mr Des Stephen

Q300 Mr Pound: Full area planned coverage: are we other towns between the two cities, Lisburn and on course for 2006? Belfast? We have six councils working very well with Mr Quinn: I would love to say we are but I think us. We are almost there but there are huge issues to there could be slippage. May I explain? It comes be resolved. Thankfully, we have nearly achieved back to this conflict we work with in planning. When sign-oV within government and there will then be a we are bringing forward proposals in an area plan, printing stage to get the plan out. That is our someone’s cherished view is another person’s proposal. I would say this has been a huge cherished housing site. In planning terms, we in undertaking. To do a plan with 38% of the DOE bring forward area plans. There comes a stage province’s population in one go is a major exercise. when we publish the draft plan when the statute takes over. Immediately, the statute requires six weeks for objections. All unresolved objections, of which we get very many because there are conflicts Q303 Mark Tami: I understand you have been in there, are referred to public inquiry. That is looking at the need for a Northern Ireland land-use undertaken by an independent body away from the database. What stage are you at with that and what department, and right and proper that is. The conclusions or otherwise have you reached? situation is that the draft plan goes out and you Mr Mike Thompson: This is the responsibility of allow six weeks for objection. At that stage it is a step both departments and they are collaboratively into the unknown. We would love to see, as all looking at it. We think it has something in it that planning authorities would love to see in these would be really beneficial and would have great islands, fewer objections and we could move quickly potential in Northern Ireland. We are very to adopt the plan. We must recognise reality here. conscious though that is a very costly and time- There is a stage after that six-week period when there consuming exercise. We are nervous about going is an unknown. Mr McGrady will be aware that in there until we are very clear in our minds what its his area we were taken aback by the level of purpose is, how we will use it, and how indeed best to objection. If the level of objection is low, we can undertake it. Our colleagues in the planning service move quickly to full plan coverage because we can Y have their annual monitor; that covers quite a get a quicker e cient public inquiry, a shorter report narrow focus. One option would be to build on that and then we can adopt the plan more quickly. I and slowly but surely extend its coverage until it would have to say that in some cases this is unlikely, covers all of Northern Ireland. The other option that so there could be delays, but we want to move as has been suggested perhaps would be perhaps quickly as we can. At the same time, we have to photographic flyover to give us that overall, recognise that people have the right to have their overarching big picture and then, after that, to get objection properly considered and reported on and into some detailed surveying. We are still very much no one really can control the length of that period. I at the stage where we have not really clarified our would say that later this year we will consult on new thinking in terms of when we are going to do it and legislation aimed at speeding up that process how we are going to do it. It is a live issue and we are whereby we can actually have an inquiry that works considering it, but there are a lot of implications that in a certain way that means we can work through come out of it that need to be worked through and everyone’s concerns more quickly. At present, we are working through those at present. anyone can come along and, to use a phrase I have heard, have their day in court. We have to see if we can find a system that allows objections to be properly considered and reported on but more quickly. Q304 Mark Tami: On the planning issue, can I look in particular at how it would aVect or not aVordable housing? Q301 Mr Pound: The target date is 2006? Mr Quinn: We carry out a very extensive annual Mr Quinn: The target date is 2006. To meet that we housing survey each July which we publish at the end need a fair wind and fewer objections. of June the next year. In terms of housing, we are well covered. Our concern about moving too quickly Q302 Mr Pound: I entirely understand the caveat. to extend this to all land uses is that rightly there What about the Belfast metropolitan area plan? have been questions about slowness of producing When do you anticipate publishing that? area plans. Earlier this session the point arose that Mr Quinn: Our Minister is on record as saying that we are under pressure to have speedier planning will come out in the autumn, and that would mean decisions. We also have people saying to us that we late-October. The situation with the Belfast must put in more resources to protect the built Metropolitan Plan is that it is a huge undertaking. heritage. There are huge conflicts in there and Very few planning authorities in these islands have demands on resources. If we were to move now, as undertaken such a task. There are six councils, 38% we would like to do, to advance the land use of population of Northern Ireland, almost 700,000 database, then there would be tension. In what other people. There are huge issues in there. We are only services we currently provide would there be too aware of them. Do you expand or retain the slippage? I think people would be saying: “Move on, greenbelt or do you eat into it? How does Belfast city finish what you have undertaken in terms of your centre develop in relation to the suburbs? What is the programme and the database could come after relationship between Bangor and Carrickfergus and that.” It is not a perfect world. Northern Ireland Affairs Committee: Evidence Ev 123

19 May 2004 Mr Pat Quinn, Mr Jim Thompson, Mr Mike Thompson and Mr Des Stephen

Q305 Mark Tami: Earlier this month I think you Q308 Mr Swire: Is that conversions or new build? undertook a review of housing growth indicators in Mr Quinn: That is brownfield new build. We also the Regional Development Strategy. How would have been successful with some of our heritage you see that really having an eVect in terms of social buildings, especially shirt factories in Derry, and a and aVordable housing? number of other heritage buildings. Density Mr Mike Thompson: We have just gone out to public becomes an issue when you are dealing with sites consultation on the housing growth indicators that promoted in established residential areas. We find are contained in the Regional Development that the higher the quality, the more acceptable the Strategy. This is something that we said we would do development. It would be fair to say that while at this stage in the life of the Regional Development people in Northern Ireland at a strategic level say, Strategy. We are fulfilling a commitment that was “Yes, more housing in urban areas is better with made some five years ago. The housing growth high density”, when it comes into an established indicators give growth indicators for every district residential area, it can give rise to a lot of objection council across Northern Ireland. It is a housing and concern. With city centres and town centres and, indicator and so it includes general market housing if you like, main transport corridors it is more and social housing. Our view is that it is of huge straightforward. When you try to build high density importance to get these right. As I said earlier, there in established residential areas, there is strong is some evidence from particular areas and perhaps resistance. it needs some fine-tuning. From the housing growth indicators, our colleagues then prepare area plans. We can take those housing growth indicators and Q309 Mr Swire: What opportunity therefore have identify sites for land and then, from that process of you to increase density in areas of high demand and utilising the housing needs assessment, which the to introduce the aVordable housing that you need? Housing Executive do, perhaps identify sites or Mr Quinn: Where there is high demand in an area availability of land for social housing. There is a which is characterised almost totally by established hierarchy there and they all fit together. Certainly residential areas and you are looking for very the housing growth indicators are of great important specialist sites on the main radial corridors through to that whole process. out those areas, it becomes almost impossible to try and promote high density within, shall we say, Q306 Mark Tami: You are confident that you will be private cull-de-sacs and it gives rise to strong able to pick that up and aVordable and social objections and it would not be a good idea. So you housing will fit into this model and not just be, as is are dependent upon sites in mixed-use areas on main often the case, everyone saying they want it but, in transport corridors through the areas of high the final stage, it never really happens? demand, but we are finding that there are a number of major sites that will come forward. It is interesting Mr Mike Thompson: To give you some reassurance for us to see how far people are prepared to move on that, in terms of the classic civil service, we always from their local area to have their demand met. My set up an interdepartmental group before anything colleagues will want to say something about the like this, and we have done that on this one with our transport side. colleagues from the Housing Executive to make sure that we have the connection there with social Mr Mike Thompson: The basic starting point in this housing. They are keeping us right on that. We are question has to be that there is only a finite amount also looking at the net housing model that the of land in terms of how much you get and how much Housing Executive has and making sure that it you can go up. In terms of the DRD, we also have aligns with the housing growth indicators so that responsibility for transportation and this is social housing aspect is well covered because of the something we are looking at in terms of trying to importance of it. make the public transportation network in Belfast in particularly work well. High density helps in terms of transportation and it is something that we are Q307 Mr Swire: Turning to housing density for a looking at in the transportation PPS that we are just moment, how and by which department are levels of about to publish, PPS13. housing density decided and controlled? Mr Stephen: There are two additional points. In Mr Quinn: This is one of the most emotive issues we terms of PPS12, there is best practice guidance deal with in all of our many thousands of planning included within the document to deal with urban applications. Obviously policy is brownfield first capacity studies. Within that, the yield of the urban and high density where possible. We can point to one capacity studies using higher density standards does guiding principle. The density of any housing allow a greater capacity and more compact cities and proposal should not harm the established character town. That is the first point. I think the second thing of a residential area. There are fine judgments in is that there is a draft policy also within the PPS12 there. On the positive side, clearly you will know that on appropriate densities to retain the character of if you move housing, as we have done successfully to existing residences. This is the point Pat Quinn was city centre locations, you can achieve higher density. making. That is reinforcing protection of the We have some extremely high density, high quality character of those established areas. The third thing developments in Belfast city centre and in other is that on PPS13 there is a clear indication that city centres. higher density may be promoted along public Ev 124 Northern Ireland Affairs Committee: Evidence

19 May 2004 Mr Pat Quinn, Mr Jim Thompson, Mr Mike Thompson and Mr Des Stephen transport corridors where indeed we are trying to collectively have responsibility for it. That lies integrate transportation with land use and promote elsewhere and that is not to negate our keenness to greater use of public transport. be involved in the process.

Q311 Chairman: Gentlemen, another piece of the Q310 Mr Luke: I have a question on standards. Are jigsaw has fallen into place in respect of the inquiry. there any plans—and there has been a lot of We are very grateful for the contributions that the movement in the mainland towards lifetime department has made, both in the submissions and homes—that you might have to introduce a lifetime this afternoon. Is there anything that you may wish homes standard to private housing development in to add in respect of questions that you expected us Northern Ireland? Where would responsibility for to ask but we have not? considering such a proposal lie in the planning Mr Quinn: One thing I would like to say in response to system? a question from this side of the chamber is that in terms Mr Quinn: It is a live issue and one that we talk to a of our programme, I would have to say, and most number of people about. We feel that in planning people would say this if they were sitting in my seat, terms we have a certain function: where should that I would be naı¨ve not to assume that there would development be? How could we minimise the impact be perhaps a higher than expected level of objections on the environment? How big should it be and what to our area plans. It is interesting that planning should it look like? We think that in terms of lifetime awareness is on the increase. Environmental awareness homes more detailed analysis is required. We think, is on the increase. Therefore, I cannot say that this and I am sure colleagues on the mainland will not programme will be achieved by 2006. I think there will thank me for this, that building control has perhaps be slippage there; we will do our best to minimise any better skills in terms of delivery of what we are slippage but it would be very optimistic to say this will talking about rather than the planning system. The be done by 2006, given the programme that we are planning system is under pressure already to make involved in, given the likelihood of diYcult public decisions more quickly, taking into account inquires, but we will minimise how far we go beyond environmental impact. If we get into the detail of 2006 as much as we can, but some of it is beyond our lifetime homes, I think two things apply: one, we are control. not the right authority with the right skills; and, two, Chairman: Those points are noted, of course. I am it is going to slow up the process which people say is sure you will be aware of the housing stress levels in cumbersome already. There is a number of issues Northern Ireland and the impacts on those that still there which we would want to state. I think the require aVordable housing and feel we are not building control function is a better avenue. delivering. As long as there is a balance between the Mr Mike Thompson: If this goes forward, clearly we need and what is possible, then we are all singing oV would want to be involved and play a positive role the same hymn sheet. Gentlemen, thank you for in the process of taking this forward, once we your attendance. Northern Ireland Affairs Committee: Evidence Ev 125

Tuesday 15 June 2004

Members present:

Mr Tony Clarke, in the Chair

Mr Adrian Bailey Mr Hugo Swire Mr Iain Luke

Memorandum submitted by the School of the Built Environment, Faculty of Engineering, University of Ulster

Introduction We wish to alert the committee to a range of issues and factors aVecting housing provision generally in Northern Ireland, and especially the provision of social housing. These are set out under a number of headings, in no particular order. The time that has been available, in a very busy part of the academic year, has meant that our first priority has been to making a timely submission, albeit briefly, rather than risk not meeting your deadline. Declaration of interest: members of the School of the Built Environment from time to time have undertaken applied research and consultancy as contractors to the Northern Ireland Housing Executive. This submission, however, is entirely in our capacity as independent academics in the University of Ulster. The issues considered here are as follows: 1. A distinctive demography 2. A continued improvement in housing conditions 3. The persistence of sectarian divisions and paramilitary activities 4. Significant economic growth 5. A strong home ownership sector 6. A solid house building industry 7. Modest recovery in private renting 8. A changing social rented sector 9. A changing planning system 10. The governance of social housing 11. Distinctive relations with the housing market of another EU state 12. Concluding thoughts: key issues

1. A distinctive demography Northern Ireland has a distinctive demographic structure compared to other parts of the UK, with a greater proportion of under-16s and a smaller proportion of elderly pensioners. Live birth rates and total fertility rates are both significantly above the UK average. Average household size is substantially above the UK average: 2.65 compared to 2.36 in 2001. Although Northern Ireland has experienced many of the same demographic trends as elsewhere in the UK, these diVerences suggest that natural increase and new household formation are likely to be at higher rates here than in other parts of the UK. It is also important to note sub-regional variations in demographic characteristics of the population within Northern Ireland, as well as distinctive diVerences between the Catholic and non-Catholic populations; indeed, there is a high correlation between the two. Catholics tend to have a higher average household size and a larger proportion of under-16s. These characteristics are most marked in parts of west Belfast as well as the west and south of Northern Ireland more generally. Again, it is therefore likely that there will be higher new household formation in areas with a Catholic population. These variations lie in part behind the idea that there are two diVerent kinds of housing need in Northern Ireland: “Catholic housing need” which is manifest in housing shortage in particular locations and “Protestant housing need” which takes the form of need for house and area rehabilitation and modernisation. Overall population and household growth was reduced slightly between 1991 and 2001 by small net out- migration. Any significant changes in migration patterns would aVect population and household formation. On the basis of current demographic trends and factors, however, we expect housing demand and need both to grow during the next 10 years. Ev 126 Northern Ireland Affairs Committee: Evidence

2. A continued improvement in housing conditions The 2001 House Condition Survey provided firm evidence of continued improvement in the dwelling stock in Northern Ireland. Such improvement has come about as a result of the activities of private and social sector action. The Housing Executive continued with new building of good quality homes up to the late 1990s and it continues to encourage upgrading through neighbourhood renewal activities. Housing associations have also contributed excellent quality new housing. Private builders, as well as owner-builders, also have contributed to a massive upgrading of housing quality in Northern Ireland. There is no large-scale problem of poor quality within the social housing stock, in comparison with unpopular 1960s estates in Britain, and there have not been any pressures for large-scale voluntary transfer as a mechanism to generate private finance to fund refurbishment or replacement of public stock. This may be partly explained by the relatively late date at which large scale urban renewal was undertaken in Northern Ireland: the unpopularity of high rise blocks in Britain was already well documented so older slum housing was replaced with low rise rather than tower blocks. There are numerous residual problems of quality and standards in Northern Ireland, as well as inevitable “natural” deterioration of the existing stock, but the overall improvement of housing conditions is one area where all concerned can take pride in major achievements. This, however, should not be the basis for complacency as continued monitoring and a focus on areas needing attention are essential elements of public sector housing concern.

3. The persistence of sectarian divisions and paramilitary activities Despite recent political progress, most aspects of everyday life in Northern Ireland, particularly in poorer neighbourhoods, are still influenced by intense community divisions. “Peace walls” had to be built after the Belfast Agreement and the establishment of devolved institutions. Residential segregation along “ethno- religious” lines appears to have intensified rather than diminished since the early 1990s. Despite recent policing reforms, moreover, there are still unresolved issues regarding the legitimacy of the PSNI in particular neighbourhoods and even town centres. Paramilitary organisations on both “sides” of the community are still actively involved in unoYcial “policing” and violent inter- or intra-community unrest often simmers or breaks out. These social divisions have a number of impacts on the housing system, and in particular on the capacity of social housing agencies to manage their existing stock and provide accommodation to those in need. For example, there may be a high level of unmet need in particular inner metropolitan areas near to viable dwellings which have been rendered unoccupied by violence or the threat of violence. Social housing managers have to take into account the wishes of applicants, as well as sensible expectations about the risk that would attach to anybody housed in the “wrong” neighbourhood. Any analysis of stock availability, including vacancy rates by sector and geographic location, must take the realities of intense social conflict into account. Particularly violent episodes in the past resulted in waves of homelessness. Continuing social divisions generate both individual/family homelessness and group homelessness. This is over and above the level of homelessness that might be expected to operate in the absence of intense social division.

4. Significant economic growth Northern Ireland has experienced real economic growth during the last 10 years, although the economy is still relatively dependent on public sector employment and investment. There have been substantial improvements in the number of persons in work, especially women, and in household incomes. The Northern Ireland has also experienced the same processes of economic restructuring that have operated elsewhere in the UK, especially the decline of manufacturing work (especially in textiles and engineering) and growth of service employment. There is a relatively high level of long-term male unemployment, especially in parts of the west, and household incomes remain well below the UK average. Taken together, economic growth and labour market changes have resulted in significant variations in income and wealth. There is a relatively prosperous middle class, including a growing number of Catholics, who are able to buy not just their own home but also a holiday home and/or undertake a rental housing investment. In some parts of Northern Ireland, by way of contrast, there remain pockets of intense deprivation and social exclusion, and hence high levels of housing need in particular places.

5. A strong home ownership sector Home ownership has grown strongly in Northern Ireland, with modest house price growth but no significant surges or collapses in house prices during the last 20 years. Access to home ownership is more aVordable than in other parts of the UK, and dramatically so compared with southern England. Growing real incomes and the sale of Housing Executive homes to tenants has boosted the growth of home ownership. The re-sale on the open market of former Housing Executive dwellings provides a continuing source of cheaper dwellings for first time buyers and there is little evidence to date that there have been high levels of inflation in the former public sector stock. Northern Ireland Affairs Committee: Evidence Ev 127

There may be a greater mixing of the two communities in better quality housing areas, though there is a high degree of ethno-religious residential segregation even in areas of primarily or wholly owner-occupied homes. There is thus evidence of “dual” housing markets in Northern Ireland, though this may just be a fact of life rather than a “problem”. In the longer term, though, current demographic diVerences and trends, combined with ongoing social division, may well have highly diVerentiated impacts on local housing markets. There are marked regional (NUTS level) and sub-regional variations in the owner-occupied market. The overall level of home ownership varied in 2001 from 56% in Belfast to 75–76% in Outer Belfast and the West and South. Outright ownership was highest in the West and South (37% of households compared to an average of 29%) whereas Outer Belfast was characterised by a high level of mortgaged owner-occupation (48% of households compared to an overall average of 41%).

6. A solid house building industry There is a solid and eVective local house building industry in Northern Ireland, catering for a wide range of preferences and income bands. It has operated in a relatively permissive planning environment, until recently, but builders have expressed growing concerns about rising land costs and diYculties of site assembly. Similar concerns have been expressed by social housing agencies that have been frustrated in their attempts to provide new social housing by high land costs. Both builders and housing association directors have advised us that land prices have become a major issue and could result in reduced supply of new housing—in all sectors—and housing costs increasing above the general rate of inflation. We believe that these are serious concerns rather than industry hype and that consideration should be given to ways of ensuring a continuing supply of land at prices which enable private and social housing agencies to provide a range of dwellings types and at a range of costs commensurate with community capacity.

7. Modest recovery in private renting

There is evidence of a modest recovery in private renting, Northern Ireland as the sector accommodated a slightly larger share of households in 2001 than it had in 1991. This has partly been due to the construction of apartment and other new dwellings designed for the rental market, as well as some former Housing Executive homes finding their way into the private rental sector. Relatively little is known about the investment decisions of landlords, though ongoing research is addressing the matter.

8. A changing social rented sector Social housing in Northern Ireland has undergone many changes during the last ten years and is currently facing many challenges. The overall social sector stock fell between 1991 and 2001 by over 30,000 dwellings, as sales significantly exceeded new building. In addition, some stock was lost through demolition, both as part of urban renewal strategies and in response to low demand in troubled localities. One major strategic change, initiated by government, was the transfer of the social housing new build programme away from the Housing Executive and wholly to housing associations. This follows practice in Great Britain, and takes advantage of private finance for housing associations, but appears to have been followed by a significant decline in new construction for the social housing sector during the last few years. We are not aware of any local preference for the transfer of new building away from the Housing Executive, excepting possibly from within the housing association sector. The Housing Executive has enjoyed strong cross-party support and some parties at the last general election raised the possibility of reinstating the Housing Executive’s construction role. There are many small housing associations in Northern Ireland, and they may not have been regulated and monitored as closely as in Britain. One justification for the existence of so many small housing associations was their “local” origins and the need to cater for diVerent local communities (and diVerent “traditions”). Some of the larger associations now operate throughout Northern Ireland, however, and it is not obvious that any public benefit follows such arrangements. As housing associations are now the main providers of new social housing, it would be timely to undertake a rigorous analysis of their eYciency and eVectiveness, including from a TSN perspective. You might also like to consider how well they cater for “general needs” housing and the extent of their contribution to relieving homelessness in Northern Ireland. The Co-ownership Housing Association has long experience of encouraging homeownership through a variant of shared ownership. It claims to enable people who would not be otherwise able to buy to achieve home ownership. We take the view, however, that its main function is to enable people who would have been able to buy to do so sooner, or achieve other objectives in terms of area of choice or price band. It generates net income by capturing capital gains on those parts of dwellings that it owned before co-owners staircase out or otherwise dispose of the property. With overall home ownership over 70%, it may be timely to review the purpose and functioning of such an agency. Ev 128 Northern Ireland Affairs Committee: Evidence

9. A changing planning system The system of town and country planning in Northern Ireland has been changing recently along the same lines as the rest of the UK. A regional development strategy followed the model of regional strategies in Britain and includes a strong commitment to the restraint of one-oV building in the countryside and attempting to achieve a high level of new construction on “brownfield” sites or, in the current terminology, within the “urban footprint”. Part of our concern about this turn in planning reflects issues raised by builders and housing association leaders: new constraints may reduce land availability and push up prices: any such costs will inevitably be passed on to consumers or result in lower output, or both. We are not aware that any substantial brownfield land availability studies had been completed before the shift in planning policy. Indeed, we are not aware whether such studies have been undertaken to date. We note that one factor in the relative aVordability of home ownership in Northern Ireland has been a relatively permissive planning system which had tended towards approving a range of new housing developments except in clearly specified areas. Indeed, there has been large-scale de-concentration of population and households as new housing has been constructed in a wide arc around metropolitan Belfast. We are not aware of any significant expressed consumer demand for higher housing densities, nor are we aware of a large reservoir of suitable brownfield land which can be developed for other than higher priced new housing. If the turn in planning policy does have the results that we fear, then this could reduce the availability of aVordable home for first-time buyers and thus increase demand for social housing provision.

10. The governance of social housing We note that there have been many changes in the departmental, organisational and administrative arrangements relating to social housing in Northern Ireland since the last major policy review in the mid- 1990s. One area where there may be concern relates to the governance arrangements for social housing agencies, especially housing associations but also the management boards of other agencies. We are aware that there is an ongoing review of public administration, but we believe that there could be issues arising from multiple oYce holding in social housing agencies (let alone wider issues of multiple oYce holding on councils, the Assembly, and Parliaments in Westminster and the EU). For example, do we know how many people employed by social housing agencies are also on the boards of other social housing agencies, or how many public servants are on the management boards of social housing agencies? Many people occupy positions that could at times face severe conflicts of interest, for example during competition between agencies for development land? Are issues concerning conflicts always handled with due propriety? The light touch that may have been appropriate for the regulators of housing associations during a period of growth despite intense social conflict may be less appropriate in future.

11. Distinctive relations with the housing market of another EU state It can be diYcult to quantify the extent of the interaction between the housing markets of Northern Ireland and the Republic of Ireland. Nonetheless, it is clear that Northern Ireland is distinctive within the UK in sharing a land border with another EU state. It has become clear, especially after the demilitarisation of most of the border region, that there are many interactions between the two housing markets. In particular, the City of Derry has spilled over the border, with new suburbs in border villages in Co. Donegal. Developers, builders, estate agents and property investors from both jurisdictions operate on both sides of the border. Many Catholics living in Northern Ireland have purchased holiday homes in the Republic, whereas Protestants may tend less to buy their holiday homes across the border. Although house price increases have been greater in the Republic, there was a remarkable coincidence in the timing of house prices increases after the mid 1990s in the two jurisdictions. There has been limited research on the interaction between the two housing markets, but a picture is emerging of complex and growing interaction. For example, new housing in Co. Donegal in the mid to late 1990s was cheaper than equivalent dwellings in the City of Derry whereas that relationship may have inverted recently. For sure, building workers may migrate to areas of demand and building contractors may chose to operate in the Republic while demand and profits remain high. There is no doubt that such decisions would impact housing provision and costs generally in Northern Ireland. Although the social housing systems of the two jurisdiction remain diVerent, we may be moving towards, in eVect, a single albeit diVerentiated housing market on the island.

12. Concluding thoughts: key issues We do not see our primary role as one of recommending polices, but we wish to emphasise the significance of some key issues and questions. — Growing diYculties regarding land availability and costs. — Uncertainties over the eVects of structural change in social housing provision, including governance issues. — The existence of enduring social division, permeating all aspects of life including private housing markets and social housing provision, and impacting on the capacities of social housing agencies. — The possible emergence of an all-island housing market. March 2004 Northern Ireland Affairs Committee: Evidence Ev 129

Memorandum submitted by Paddy Gray, Senior Lecturer in Housing, University of Ulster

The Rising Demand for Social Housing

The Waiting List for Social Housing

Since 1998 a Common Waiting List has been in operation in Northern Ireland for applicants for both Housing Executive and housing associations general needs accommodation. In November 2000 a new Common Selection Scheme was implemented Table 1 illustrates the key trends in the waiting list over a 10 year period. A number of key points emerge: Between March 1993 and March 2000 the overall number of applicants remained fairly constant at around 23,000. However, over the 12 month period to March 2002 the number of applicants jumped by approximately 4,000 to nearly 26,000, well above the levels typical of the 1990s. In the 12 months to March 2003 the waiting list once again grew rapidly (by approximately 700; 2.8%) to reach 26,700. Between March 1993 and March 2000 the number of applicants in urgent need rose gradually from approximately 10,500 to 11,700. Following the expected dip on March 2001 the number in housing stress rose rapidly to reach 13,237 in March 2003, an increase of 750 (6%) since March 2002. As a proportion of the overall waiting list housing stress has remained at around 50%.

Table 1

TRENDS IN WAITING LIST 1993–2002

Total waiting list Total “Urgent Need” % “Urgent Need” March 1993 23,568 10,490 44.5 March 1994 22,962 10,579 46.1 March 1995 23,355 11,196 47.9 March 1996 23,349 11,148 47.7 March 1997 23,759 11,895 50.1 March 1998 22,691 11,510 50.7 March 1999 23,193 11,678 50.4 March 2000 23,084 11,732 50.8 March 2001* 22,054 10,639 48.2 March 2002 25,983 12,486 48.1 March 2003 26,700 13,237 49.6 Change 93/03 !3,132 (13.3%) 2,747 (26.1%) !5.1 (11.5%) Change 02/03 !717 (2.8) !751 (6.0%) !1.5 (3.1%)

* For March 2001 Urgent Need was redefined as Housing Stress. Housing Stress is defined on the basis of an applicant with 30 or more points, previously known as Urgent Need. (Source: The Northern Ireland Housing Market, Review and Perspectives 2004–07) In terms of its composition, the waiting list is dominated by three household types: singles (44%), small families (26%) and elderly (19%). Table 2 demonstrates changes over the past three years with signs that the proportion of singles is increasing whilst the other two dominant groups are falling slightly.

Table 2

THE COMMON WAITING LIST: HOUSEHOLD COMPOSITION 2001–03

Household Type March 2001 March 2002 March 2003 (%) (%) (%) Singles 41 40 44 Small Adult 4 5 5 Small Families 28 26 26 Large Families 5 5 5 Large Adult 1 1 1 Elderly 20 20 19

Source: NIHE Ev 130 Northern Ireland Affairs Committee: Evidence

Table 3

SOCIAL RENTED SECTOR WAITING LISTS, ALLOCATIONS AND TRANSFERS 1998–99 TO 2002–03

Number of Number of Waiting List at 21 March Allocations Transfers Priority “A” Total Applicants

1998–99 10,643 4,193 7,600 23,193 1999–00 8,496 2,726 7,312 23,084 2000–01 9,671 2,248 10,639 22,054 2001–02 8,824 3,330 12,486 25,983 2002–03 8,766 3,384 13,237 26,700

Allocations and Transfers relate solely to NIHE Under the new Housing Selection Scheme Priority “A” Applicants no longer exist. These are now subsumed in “Housing Stress”. The figure shown here for comparative purposes is the total in “Housing Stress” Source: NIHE

Waiting List Analysis, 2003 Housing need in the social sector is met principally by relets. Over the last two years (2001–03), relets to applicants for social housing averaged around 8,000 per annum. However, although this figure is showing signs of increasing, it has proved insuYcient to curb the ongoing, fairly rapid rise in both the overall waiting list and housing stress. Consequently, the Housing Executive has carried out further more detailed analysis on the basis of geographic distribution and household type.

Geographic Distribution There is a geographical concentration of housing need with two thirds of the growth in housing stress coming from 12 Housing Executive Districts in and around Belfast. It is diYcult to identify with certainty the relative importance of the contributory factors in this process, but a number of interrelated forces are at work: — Proximity to Belfast—the main hub of the Northern Ireland economy; —DiYculty in obtaining land for new low cost/aVordable housing developments in and around Belfast and the lack of new social housing in these areas. — The level of house prices in Belfast and surrounding district council areas. — Socio-demographic forces, including higher rates of marriage/relationship breakdown and the increasing propensity for single living. In the two year period to March 2003 more than half (57%) of the increase in the total number in housing stress is accounted for by single person households. Indeed, the number of singles on the waiting list has itself grown by 40%. Small families (including lone parent families) and the elderly each account for an additional 16% of the overall increase in housing stress. The number of elderly households in housing stress has increased by 22%, the number of small families by 16%. This analysis by geographic distribution and household type provides important pointers for the future demand for social housing, for co-ownership and for low cost aVordable homes in the private sector.

Homelessness There was a 16% increase in the number of households presenting as homeless (16,426) during 2002–03 due to relationship breakdown, and higher levels of vulnerability through alcohol and drug abuse and mental health problems.

Table 4

TRENDS IN HOMELESSNESS

Year 93–94 94–95 95–96 96–97 97–98 98–99 99–00 00–01 01–02 02–03 No Presenting 9,731 10,068 10,768 11,092 11,672 11,552 10,997 12,694 14,164 16,426 No Awarded A1 3,971 4,014 4,319 4,708 4,956 4,997 5,192 6,457 7,374 8,580 Northern Ireland Affairs Committee: Evidence Ev 131

Table 5

HOUSEHOLDS PRESENTING AS HOMELESS BY REASON 1998–99 TO 2002–03

Reason 1998–99 1999–2000 2000–01 2001–02 2002–03 Sharing breakdown/family dispute 3,472 2,964 2,748 3,129 3,600 Marital/relationship breakdown 1,286 1,570 1,856 2,201 2,496 Domestic violence 768 590 636 624 595 Loss of rented accommodation 1,309 1,249 1,326 1,551 1,865 No accommodation in Northern Ireland 1,397 1,564 1,632 1,766 1,838 Intimidation 1,736 877 1,675 1,348 1,530 Accommodation not reasonable 245 230 412 901 1,533 Release from hospital/prison/other institution 309 268 320 293 336 Fire/flood/other emergency 227 141 157 181 202 Mortgage default 142 179 177 158 188 Bomb/Fire Damage/Civil Disturbance N/A 59 71 63 88 Neighbourhood harassment N/A 872 1,086 1,321 1,401 Other reasons 661 434 598 628 754 Total 11,552 10,997 12,694 14,164 16,426

Source: NIHE Approximately one half of all households who presented as homeless in 2002–03 were single people. Families with children were the next biggest category of presenters 5,871 (36%) of those presenting and in increase of 9% over the previous year. The Housing Executive’s Homelessness Strategy which was launched in September 2002 is being implemented. A number of significant recommendations were progressed including steps to reduce reliance on private shared accommodation.

The Continuing Decline in the Supply of Social Housing The Housing Executive currently has 103,000 dwellings. Since 1979 the Housing Executive has sold more than 100,000 dwellings. As Table 6 illustrates, during the last five years an average of more than 5,000 dwellings have been sold per annum and an average of more than 1,000 dwellings have been demolished annually. Table 7 illustrates the eVect this has had on Housing Executive stock. The Housing Executive is losing the equivalent of a large housing management district each year, a trend that has accelerated over the last five years, both in terms of absolute numbers and as a proportion of the remaining stock.

Table 6

SALES OF DWELLINGS BY NIHE 1998–99 TO 2002–03

1998–99 1999–2000 2000–2001 2001–02 2002–03 Sales to Tenants 4,308 4,482 5,509 4,985 5,991 Sales to Non-Tenants 87 44 46 26 63 SPED Cases 90 111 69 50 102 Total Sales 4,485 4,637 5,624 5,061 6,156

Source: DSD, Housing Statistics

Table 7

TOTAL SOCIAL HOUSING STOCK 1991–2003

NIHE HA Year Thousands % Thousands % 1991 157.5 27.5 9.5 1.7 1992 155.5 26.8 10.5 1.8 1993 153.0 26.0 11.5 2.0 1994 147.5 24.6 12.0 2.0 1995 144.5 24.2 13.0 2.2 1996 139.5 23.0 14.0 2.3 1997 135.0 21.8 14.5 2.3 1998 130.5 20.8 15.0 2.4 1999 124.0 19.5 16.5 2.6 2000 118.0 18.2 17.5 2.7 Ev 132 Northern Ireland Affairs Committee: Evidence

NIHE HA Year Thousands % Thousands % 2002 110.5 16.7 19.7 3.0 2003 102.8 15.4 20.9 3.1

Source: DSD Housing Statistics 2002–03 Within the social sector the balance between Housing Executive and housing association stock is continuing to change. There are currently 39 registered housing associations in Northern Ireland. Table 7 above shows how the rented stock owned and managed by housing association has increased steadily to 21,000 dwellings (3% of total stock).

New social housing Since its formation in 1971 the Housing Executive has constructed more than 90,000 new dwellings, but in 2002–03 for the first time since its formation, there were no new Housing Executive dwellings built. The Housing Executive has estimated an annual requirement of at least 1,750 new social dwellings between 2001 and 2011. However, looking at actual physical starts, there is a significant and growing gap between what is required (at least 5,250 March 2001–March 2004) and what has been or will be delivered over this three year period (an estimated 2,750), an estimated backlog of 2,500 dwellings is expected to arise. Last year (2002–03) only 669 new social rented dwellings were started, a decline of 128 (16%) on the previous year. The increase in the numbers of housing stress outlined above can partly be explained by the shortfall in additional social housing. The annual new social housing programme compensates for less than one-fifth of the annual decline in Housing Executive stock as a result of house sales and demolitions.

Table 8

NEW DWELLINGS STARTS IN THE SOCIAL RENTED SECTOR 1998–99 TO 2002–03

Housing Total Social Year/Quarter NIHE Associations Rented Sector 1998–99 189 1,862 2,051 1999–00 76 1,507 1,583 2000–01 23 885 908 2001–02 25 772 797 2002–03 0 669 669 Jan–Mar 2002 0 364 364 Apr–Jun 2002 0 85 85 Jul–Sep 2002 0 93 93 Oct–Dec 2002 0 88 88 Jan–Mar 2003 0 403 403

Source: DSD, Housing Statistics 2002–03

Table 9

HOUSING ASSOCIATIONS: NEW BUILD 1998–99 TO 2002–03

Sheltered Non Sheltered Year/Quarter Elderly Elderly General Other Total 1998–99 202 125 1,311 224 1,862 1999–00 77 69 1,180 181 1,507 2000–01 44 79 600 162 885 2001–02 33 55 637 47 772 2002–03 54 46 520 49 669 Jan–Mar 2002 33 47 260 24 364 Apr–Jun 2002 0 0 77 8 85 Jul–Sep 2002 0 10 95 1 106 Oct–Dec 2002 15 6 48 6 75 Jan–Mar200339303034403

Source: DSD, Housing Statistics 2002–03 The new social housing programme is delivered by a three way partnership: The need for additional social housing is assessed by the Housing Executive on the basis of its strategic model and local waiting list information. The Housing Executive draws up a draft programme for approval by the Department for Social Development. The Northern Ireland Affairs Committee: Evidence Ev 133

Department approves and issues the final programme, including any agreed modifications to the draft and allocates schemes to individual housing associations. It is also responsible for ongoing programme management. The housing associations are responsible for building and managing the new dwellings.

Recommendations OntheBasis of Current Trends

NI Housing Executive The overriding objective in Northern Ireland is the need to secure the necessary funding to maintain the existing stock in the social housing sector and to ensure that adequate new housing is provided to meets the needs of the Northern Ireland population. Large Scale Voluntary Transfers to other social landlords who can raise money from borrowing in the private sector is one way of creating new additional investment into housing. This may not be the best way, however, as arrangements are diVerent in Northern Ireland than elsewhere in that councils in the province do not manage social housing. The NIHE rather than Local Authorities owns all non-housing association social housing properties and it has a good track record as a housing provider. There is concern that a change to the status of the NIHE might raise serious questions as to the accountability of the NIHE, and its ability to carry out its strategic functions. Some commentators have suggested that the strategic and management role should be separated with the latter being transferred to other landlords. The fact is, however, that the mixed strategic/operational role has been successful over the past 30 years and too many solutions from GB have been adapted in the past which do not consider fully the needs of the local population. This is a unique opportunity to provide local solutions that harness and build on the expertise in social housing provision and management that exists in the province and which has been widely accepted by both communities. There is, however, a need for a more established framework that will allow for increased investment in the public sector stock that does not rely entirely on the public purse. Although there has been a good track record in maintaining public investment levels in the past for social housing this is unlikely to continue and alternative investment is required. There is a growing backlog of repair and improvement work with investment running at only two thirds of what is required. It is important that any solution should attempt to retain existing structures as far as possible as much as they are now but create a climate that maximises investment from alternative sources. LSVT is one model amongst others that have emerged in recent years in GB but the conditions that exist there in terms of substantial investment backlogs do not exist in Northern Ireland where the social housing stock is in relatively good condition. The Housing Executive is and should continue to be a comprehensive regional housing authority whose functions are strategic. It is accountable to a Department for Social Development with a much wider strategic role. Both can only benefit from the clear recognition of the complementary nature of their roles. The Department for Social Development should reserve to itself policy making and financial control. Those areas where local market conditions have to be assessed it should leave to the Housing Executive. The Housing Executive should continue to commission and carry out research, the development of District Plans, and more comprehensively the regulation and scrutiny of other housing providers. The Housing Executive has the experience and staV to do so and this is not currently available to the Department. The Housing Executive’s function as a social landlord is not likely to be readily taken up by others as I have demonstrated earlier when dealing with new build for social housing. I understand that the Housing Executive has always been ready to welcome and seriously consider proposals from others who wish to make a case for LSVT. The Housing Executive should declare itself open to proposals for LSVT but not be expected to depart from value for money criteria in evaluating oVers. Such decisions would have to be explained and defended publicly including assumptions about the future of housing benefit and the costs of management. Short of stock transfers to others the Housing Executive should seek to promote some of the perceived advantages of doing so by encouraging the active involvement in the aVairs of local communities by engaging with residents and others who can positively influence local management decisions. What is needed, therefore, is role modification and clarification rather than any radical review. Housing Policy should seek to harness new and additional resources, particularly in the private sector, without disregarding or discarding the resources already at the Province’s disposal. Housing Policy has moved on from the days of very large targets and budgets to match. Local discretion should be available where it is necessary to make best use of scarce resources and to complement other social and economic goals.

Housing Associations There has been a rising demand for social housing but there has been a substantial shortfall in provision due to the housing associations not being able to meet targets set and the transfer of new build away from the NI Housing Executive. One of the most controversial areas of the Housing Policy Review in 1996 was the proposal to transfer responsibility for all future new build social housing provision to Housing Associations. The 39 registered housing associations now build all new general and special needs housing in Northern Ireland. But one major issue that has raised its head is that the movement is failing miserably to deliver. There has been major concern expressed both within and outside of government about the serious shortfall in housing association starts against targets. Recent Ev 134 Northern Ireland Affairs Committee: Evidence

figures suggest that only 600 out of a target of 1,400 have been started as we come to the end of the financial year 2002–03. On this basis the latest New Stock Model estimated that there was a need for 1,500 new social dwellings each year, although a case can also be made for a minimum net social new build programme of 1,750 dwellings per annum if the current backlog is to be addressed. However, only approximately 55% of the required total of physical new build starts has been recorded in the last two years, a combined total of 1,075. Indeed, new starts by housing associations have been decreasing year on year from 1998–99 when the total was 1,862 to 772 for the year 2001–02. This improved very slightly to 900 starts in the year 2002–03. A report published by the Comptroller and Auditor General for Northern Ireland noted that a significant proportion of grant payments to Housing Associations during 2001–02 were made in the last month of the financial year. Of the total expenditure of £55 million, £23 million (42%) was paid in March 2002. In response the Department for Social Development cited the back loaded nature of the development programme. So who is to blame? Why are social housing targets not being delivered. Is it a case that the movement cannot cope? Are too many schemes being given to too few associations leaving the smaller ones, who have delivered within target in the past, with no new development role. Some housing associations are blaming the NI Housing Executive due to serious delays in scheme approvals. On the other hand public representatives and others are blaming government for taking this function away from the Housing Executive in the first place. Whilst there may be a number of reasons for this it is not acceptable that this should continue. Steps need to be taken to allow development to be spread across a number of social landlords. There is currently a policy in N Ireland of not allowing new housing associations to form. It would make more sensetoallowawiderrangeofsociallandlordstoexisttomeetdemandwhereitisneeded.Thereisnoreasonwhy housing associations and registered social landlords from GB and the Republic of Ireland could increase competition by setting up in the province, especially those who have a track record of delivering. The Department should also consider giving a greater share of the new build programme to smaller housing associations who have had a record of delivering in the past. In the past the formation of new associations to meet changing demands has been stifled by Departmental policies which has led in some cases to monopolies amongst the larger associations and the lack of newer smaller associations evolving with changing community structures.

Private Rented Sector As I am currently involved in research in this area I will not dwell on it in much detail suYce it to say that there is a real need to examine thoroughly the role housing benefit is playing in creating voids in the social rented sector. There is evidence to suggest that social tenants are leaving perfectly adequate rented housing to move into new properties that are being purchased by the growing number of private landlords purchasing these properties for rent. This is being paid for by housing benefit as there is no association with dwelling conditions and levels of payments. There is also evidence that a growing number of properties that were purchased from the Housing Executive through the right to buy are now being rented to social tenants by private landlords. In many cases this is creating instability through anti-social behaviour in areas that were stable and in high demand in the past. 15 March 2004

Witnesses: Professor Chris Paris, Professor of Housing Studies, School of the Built Environment, and Mr Paddy Gray, Senior Lecturer in Housing, School of the Built Environment, University of Ulster, examined.

Q312 Chairman: Gentlemen, normally I would Professor Paris: I will take that, Chairman. I am welcome people to the Committee but I suppose it Chris Paris, Professor of Housing Studies at this would be inappropriate in as much as you are our University. I have been associated with the Net hosts. I think the first thing I should say is thank you Stock Model for many years now and last year, for hosting us in such marvellous surroundings; it is together with colleagues from the University of really nice to be here. Thank you for the Cambridge and Queen’s University in Belfast, we accommodation and also thank you for agreeing to reviewed the operations of that model and we looked spend some time to give evidence to help us with our at other possible models. The model was initially inquiry. We have taken some very good evidence developed from the basis of a British Audit from a broad spectrum of people involved in Commission model of estimating housing need. We housing in Northern Ireland and we have already reviewed a number of diVerent approaches to relied on the University’s data and research in estimating housing need. We wanted to get helping us to formulate our questions and to test something that was practical, sensible, based on other views of the market and how it has been objective data, but which in itself could provide panned out. We thank you again for helping us even some clear understanding of how demographic though you perhaps knew not that you were doing factors were influencing changing need and demand so. I wonder if on this occasion I could start the but was an aid to decision making. We never, ever questioning by raising the subject of the Net Stock took the view that such a model replaces decision Model and ask simply whether or not you believe making or that an aggregate demographically driven that this has proved a useful planning tool and model in itself will provide all the answers. The whether or not there would be a better planning tool review that we undertook last year considered other suited to measuring need. possible approaches and involved extensive Northern Ireland Affairs Committee: Evidence Ev 135

15 June 2004 Professor Chris Paris and Mr Paddy Gray consultation with people working in housing in in terms of household types, labour force Northern Ireland across the board—social housing participation and age has changed in the same way agencies, government departments, private sector that it has changed in Britain in that social housing housing associations—to try to get a sense of their is less and less a family tenure and increasingly a understanding of how the model worked and how tenure for singles and unemployed people and lone useful it was and, in particular, knowing that some parents. There are diVerences and similarities. In the criticisms had been made of the model by some longer term many of the trends are likely to commentators, to find out if they had other continue. I think that it may be diYcult to reinvent suggestions about how better we could seek to look social housing as a popular tenure of choice in the into the future to predict levels of need and demand. kind of world we live in now. You will have the report that we produced for the Mr Gray: My name is Paddy Gray, I am the Director Housing Executive on this and that shows that of Housing Management courses at the University generally no other better models were envisaged, of Ulster and I am also Chair of a local housing that those people who had worked most closely with association, the Open Door Housing Association. I strategic planning for housing provision were aware would concur with my colleague, Professor Paris, in of the model and its limitations, so the conclusion that there are many similarities in Northern Ireland that we reached was that particular model helps to in the way social housing has become residualised in inform decision making but a similar model the last 30 years. I would also concur with the fact developed by my colleague, Dr Alan Holmans from that social housing has had greater investment in the Land Economy in Cambridge, former Department of the Environment Chief Economist, Northern Ireland than has been the case across the came up with a pretty similar ballpark figure for the water, particularly since the reduction in investment likely need for social housing over a ten year period. in local authorities since the late 1970s when We feel that it is a robust model so long as people Northern Ireland was still a number one priority who seek to use it recognise the limitations of any area in the 1980s in Northern Ireland. That is demographically driven model. We specified very reflected in the condition of the stock. Obviously clearly what our assumptions were. Like any such there are ramifications from that in that there are model, if you change inputs the outputs will change, greater house sales going on at the moment as a so by changing the inputs we could change the proportion in Northern Ireland. We have a robust outputs. That is where we are now. We believe that house sales policy, good quality housing being sold it is robust, that it is helpful. It needs to be oV. Also we have a greater concentration of poorer complemented by other forms of knowledge, families in the social housing sector through raising particularly detailed local knowledge of demand and rents over the last 15–20 years and the change in need in particular places. Yes, we have looked at revenue between rent rebates and the introduction of other models. No, we are not aware of another Housing Benefit in the early 1980s in the sense that model that could be used in Northern Ireland that Housing Benefit has supported a more acute type of would be significantly better, especially given data tenant living in the public sector. In a sense we have limitations. a residualised sector, very high proportions of Housing Benefit, very acute needs in that sector, and I envisage that will continue in the short to long-term Q313 Chairman: Thank you. You mentioned the certainly. However, there is another aspect, which I assessment of social housing need. Within the am sure the Committee will visit before the end of English context it has been suggested that social housing can either continue to decline in size and, our talk today, in that the private rented sector is therefore, develop as a residual sector, or that it beginning to become a major player in providing could be reinvented to change people’s perception, social housing in Northern Ireland through other to be presented as a high quality sector of choice. factors which would include Housing Benefit Could you tell us within the Northern Ireland supporting that sector. I will come back to that if you context where we are on that journey and whether or wish me to do so, looking at what has been not you believe that Northern Ireland social housing happening there and how that is changing in some stock is declining into a residual sector, or whether sense the stability in some of the areas that in the past or not there is any sign of it being developed into a would have been seen as highly desirable areas. high quality sector of choice? Professor Paris: There are a number of aspects to this and I am sure my colleague will want to make Q314 Chairman: I am glad you mentioned the some comments too. Firstly, the physical quality of private rented sector. There is a need to widen the housing stock in the social housing sector in choice. I believe you have spoken yourselves of the Northern Ireland is generally very good. There is no pathways of choice in terms of allowing, or issue of unpopular estates to the extent that there encouraging, more variety in housing opportunity were from the 1960s’ mass building era in Britain for people. How do you believe that we could because there was not much social housing being develop pathways of choice for people in terms of built then, so those lessons have been learned. In the housing opportunities that are available to them? other ways clearly there are residualising tendencies Is pathways of choice something you are familiar in that the proportion of households with anybody with? I remember reading of it either in one of your in the paid labour force living in social housing has papers or in the papers that have been presented to become very, very small. The pattern of new entrants us. Ev 136 Northern Ireland Affairs Committee: Evidence

15 June 2004 Professor Chris Paris and Mr Paddy Gray

Professor Paris: I do not think it was in my paper, see tenants voting to leave Housing Executive estates Chairman, but I am aware of the sorts of issues to simply because it is not the same problem that which you refer. One of the ways in which more existed across in GB. diverse options have been explored has been through inter-agency work between the Housing Executive, voluntary sector and housing associations, Q316 Mr Luke: You have touched on one of the particularly over the question of homelessness, questions I was going to raise on the declining stock of the Housing Executive. What do you see as the successfully moving away from a crisis response implications of that for the Housing Executive? I temporary accommodation approach to one that come from a diVerent perspective from all these guys looks to provide long-term secure accommodation around the table. I come from a Scottish for people who have been deemed to be constituency, one which is actively involved in unintentionally homeless. Flexible use of private looking at the transfers of stock, probably not down sector accommodation is one way in which there is the route of the Glasgow model. Is there not a case, greater diversity. Indeed, the notion that the private V given the ageing nature of Housing Executive stock, sector is somehow separated o from the social for looking at transferring that on to another social housing sector is very distinctively a UK and landlord? perhaps Irish approach to social housing provision Professor Paris: My first point would be that the because in many countries of Continental Europe, Housing Executive stock is not ageing or as aged and Germany in particular, private landlords would generally as much of the public sector stock in be deemed to be part of the social sector if they are Scotland. It is a newer stock. Most of the providing accommodation to low income people redevelopment activities which were taking place in who are being subsidised. In that sense the social Scotland and England from the 1950s through the sector is defined by flows of subsidy and who is in it 1960s—I was a post-graduate student in Glasgow in rather than who owns each dwelling necessarily. the late 1960s—happened much later in Northern Likewise, housing associations may have for profit Ireland. There is not the same issue in terms of a subsidiaries that do market renting. I think diversity pressing need for urgent redevelopment, is something that is to be welcomed and may also be regeneration. That is important because my part of what you were asking in the previous understanding is that was one of the drivers in GB of question about could social housing be reinvented. the policy of transferring stock, because much of the Perhaps in a sense through greater diversity and stock was unpopular, of very poor condition, and diVerent pathways, how we think about assisted needed a lot spent on it. The transfer was a way of housing may be reinventing itself. getting private finance into that process. I do not think that issue operates here. The other aspect of transfer to be considered very carefully in Northern Q315 Chairman: I wonder if I could ask do tenants Ireland is transfer to whom, to what agencies. I think in Northern Ireland see the various landlords V a lot more careful thought would need to be given to di erently as is the case in perhaps England and that question before I would be in a position to form Wales whereby if you are a tenant of a district a judgment on that. Paddy might have other views. council it seems that is not as favourable an option Mr Gray: I would just follow on from what you are as being a tenant of a housing association. Is that saying, Chris. In Northern Ireland things are slightly similar in terms of the Housing Executive and diVerent. Probably the main reason behind stock housing associations? transfers in GB has been to attract private finance Mr Gray: Certainly I believe that there is a slightly into investment in public sector stock and as a V di erent situation in Northern Ireland than has product of that there has been a proliferation of the existed in GB. Again, I am going back to the levels number of registered social landlords that have of investment that were directed at public housing, literally grown up with stock transfer. In Northern local authority housing. In Northern Ireland our Ireland we have less investment than we have had in investment had been reasonably generous up until the past and the Housing Executive have not been the last five years and although that has been stifled building since 1996 and their stock will get older and it is certainly not to the extent that it has happened where the money comes from to invest in that has to in GB since the late 1970s. What has happened with be a serious question for the local population. My this lack of investment, particularly in maintenance view would be that models should be looked at as to programmes or refurbishment and tackling bad how to bring private investment into the public housing conditions, has meant that tenants have sector. Without criticising housing associations, tended to move elsewhere and obviously the success which I will not get into in this particular debate, of LSVT, Large Scale Voluntary Transfer, has been given the fact that the delivery of the new build a product of that. I suspect that in Northern Ireland programme has been diYcult, I am wondering that is not the case, that the Housing Executive does whether in one sense would there be a demand for have a very good reputation. My own deliberation stock transfer from the housing association on this is that the Housing Executive in the past has movement given its current state and, on the other always been open to other landlords coming along hand, a department that does not allow the growth and possibly taking their stock from them if the of new housing associations or developing timing was right and the need was there in a community based housing associations or even particular area. From my own working in the associations coming from other areas to look at voluntary movement in Northern Ireland I do not investment in the Province, I wonder whether there Northern Ireland Affairs Committee: Evidence Ev 137

15 June 2004 Professor Chris Paris and Mr Paddy Gray would be a base there for a stock transfer. Reading when the Northern Ireland Assembly was in through the evidence I noticed there was a large operation at the Social Development Committees in debate about the Chapman Hendy report that seems their inquiry into social housing as to what would be to be sitting somewhere at the moment and I am sure the best way forward on this, and also attracting we are all interested in the models that have been private finance. At the end of the day my view would proposed in that report. Certainly it would be be that, yes, the Housing Executive has interesting to see should we be going through a demonstrated an expertise in the past of delivering a diVerent route, should the Housing Executive be programme and, whilst not criticising the housing taken out of the public sector borrowing association movement, I have looked at the debates requirement with the formation of some sort of and watched how people have blamed diVerent types public funding or an ALMO or whatever that would of things like planning applications, like the land allow that expertise that exists there to be harnessed availability, but the fact is at the same time there has in such a way that would benefit Northern Ireland been a substantial reduction in the new build against but also would attract the healthy amount of private targets. There is an increasing housing stress of the sector investment that seems to be there anyway with waiting list with people who would have been classed the small housing association movement. as urgent housing need and in some cases the figure is very similar to the shortfall in new build, particularly around the conurbation of the Greater Belfast area. Q317 Mr Luke: If you take the UK and Scotland, We have a situation whereby new property is needed there is a trend, there are plenty of English housing and that is not being delivered. There is still a associations and Sanctuary Homes is making big substantial amount of property being sold oV and bids for regeneration investment in Scotland. that may have proliferated with the introduction of Another issue we have looked at is the gap between the right-to-buy for housing associations. Yes, I the actual need and provision of new social housing. believe that any new players coming in that can One of the issues that we have been talking about is provide building for social housing should be taken have the housing associations the ability to meet the seriously and should be looked at. You did mention targets set by the Housing Executive or, given there the fact that large housing associations in England has been a gap developing over the last few years, is have moved into Scotland, and also in the Republic there an argument for returning responsibility for of Ireland we have had a number set up, albeit some of the new build back to the Housing Executive changing their names to become more Irish to make up for that gap? orientated. I know there are associations in the Professor Paris: In answering that question I would Republic of Ireland looking to see if they could want to distinguish between the extent to which operate in Northern Ireland. I believe competition is there may be a political judgment involved in healthy and if the housing associations can prove a whether or not the public sector should resume some track record of delivering, yes, they should be functions which have been passed on to the non- considered. profit sector, about which I would not wish to comment, from technical issues to do with delivery of programmes, which I feel I would be happy to Q318 Mr Luke: What would you see as the major comment on. Clearly in recent years the new social reason why the housing association movement in programme has fallen below target. Technically the Northern Ireland has not been able to hit the targets Housing Executive over many years has that have been set? You went through a few of the demonstrated over many years its ability to produce reasons, such as land availability and planning good quality new social housing. I can see no procedures. Is it also the case that the housing technical reason why the Housing Executive should associations themselves are too small in general? not be able to resume new social housing Mr Gray: Going back to the comparison with GB, production, but there may be political reasons which they are relatively small and they still have a small I would prefer not to comment on. amount of stock with 21,000 in Northern Ireland. Mr Gray: Certainly my view would be that the We are made up of 38 registered housing reason behind the new build programme being associations and a few unregistered. I believe that transferred to the housing association movement in the way the new build programme has been directed 1996 was very much a product of the housing policy has been directed to larger associations. I think it review that came under the direct rule was the DSD that mentioned 25 associations were administration at that time. Again, this goes back to on the new build programme and I would be my argument of was it necessary to do that to attract interested to see how that pans out, who delivered private finance or would other models have been and who did not deliver within those housing more acceptable that may have attracted a lot more associations. I know the tripartite working group is private finance. Granted, a substantial amount has working to look at that again and ensure that the come into the housing association movement, the programme is met in the future. To answer your equivalent of building 3,600 homes, but with an asset question, I feel that possibly the association base of 100,000 properties, relatively new and in movement is still relatively small and does not have relatively good condition, would the Housing the expertise of delivering a new build programme Executive itself not have been in a better position to that the Housing Executive has. In many cases that attract private finance? In that sense I would argue should be recognised and in a sense, looking at the that possibly, yes, the model should have been new build programme and how it is delivered, you interrogated more. I know this came up for debate should be looking at a wider range of players. Ev 138 Northern Ireland Affairs Committee: Evidence

15 June 2004 Professor Chris Paris and Mr Paddy Gray

Q319 Mr Swire: Can I ask you three questions on and, as I say, I am a great believer in competition and funding. I will ask them one, two, three and then you bringing in other people, and why not direct some can come back if they need further digestion. The public money towards people who are going to first question is about the framework and it is to ask provide housing for social need. what framework you believe is most likely to deliver Professor Paris: I agree with all that. We are not a the funding necessary to maintain the existing social complete double act, I am sure there are some things sector housing stock as well as delivering an that we will disagree on. In a sense we have covered adequate new build programme? The second point is the question of the housing planning figure in terms about the Housing Executive that noted that of how aggregate funds come into and out of the housing developers have expressed in the past an housing system. Again, I feel there are political interest in constructing social schemes with grant aid judgments involved here rather than technical ones, and how you feel such schemes might operate, and that the technical issues are more easily resolved what advantages, if there are any, would they oVer than judgments about what money should go into compared with traditional grant aid? Finally, what which function of the state. I would prefer not to has been the impact of the use of the “housing comment on political issues to the extent that that planning figure” on housing finance? is possible. Mr Gray: I will try to answer the first two points you Chairman: We will try. raised and Professor Paris may want to come in on all three. Certainly on the existing method of Q320 Mr Swire: In that spirit of harmony, we will funding in Northern Ireland, there are some move from funding to planning. I would just like to criticisms that I would have on the way that housing ask you what evidence there is that developments in is funded. The main criticism that I would have, and planning policy might reduce the availability of it probably will not answer your question in full, is aVordable homes for first-time buyers and thus particularly with regard to the way the Housing increase demand for social housing provision? Executive has to pay back loan interest charges and Professor Paris: I feel I can comment on that, certainly the amounts that they have to pay back and perhaps excessively because my first professional the fact they are still paying interest charges on qualification is as a planner, so I am a corporate houses that they have sold oV, that that still runs its V planner although I am in the Australian Planning course and is not paid o once the house is sold, and Institute rather than the local one. In my view, the also the fact that they are paying interest rates at key issue in planning policy has been the move levels sometimes similar to the 1980s when interest towards a more tightly regulated supply of land. rates were as high as 18% or whatever. They have not Planning in Northern Ireland was distinctively been able to look at that and remortgage, as it were, diVerent from most of Great Britain up until very because they are still under the Northern Ireland recently and was perhaps a sort of halfway house consolidated loans pool. I feel that a substantial through an even more permissive regime in the amount of that money is being paid back to Republic of Ireland. The Regional Development government that could be reinvested or could attract Strategy, which to my surprise was passed entirely a better system of financing. I would also criticise the unanimously in the Northern Ireland Assembly, has financing of the capital receipts that come from the set new targets for brown field development of 60% Housing Executive in the sense that they have this of new development, which I fear could have a capped rate that the department decides on and they significant impact on restricting the availability of would say “You have a target of selling 5,000 homes land. During the inquiry into the Regional and if you sell 6,000 we will claw back the rest, we Development Strategy in this city the projected will claw back the extra £1,000, but if you sell only number of additional households during the 4,000 you will have to make up the shortfall planning period was increased by almost 50%. To yourself”. I am not sure that is the most appropriate the best of my knowledge, it is not possible to way of financing public housing. I know that in GB increase the amount of brown field land by 50%. One people would say it is a much better way than the of the diYculties was at that time, and to the best of way in which we were funded over the past number my knowledge still, there was no comprehensive of years when the figure was 20% of capital receipts. land availability study available to go on. In I am sorry, I may not be answering your full question Northern Ireland one way of getting round this, but those are two particular areas that I would be which I think is a creative, analytical and technical concerned about. On the second situation, the device, is to talk about the urban footprint. As far as awarding to private developers of Housing I am aware, that is a suYciently vague and Association Grant as we call it here, or Social meaningless category that you could include almost Housing Grant as you call it in GB, I would not rule anything in it if you really wanted to, so that may be out anything that would provide housing for social a way of getting round the 60% limit. I am already in tenants, particularly in a situation where there is a print in a scholarly journal arguing that my fear is rising housing need. How that could be regulated that what the changed planning regime could result would be important, but at the same time some in is a system of planning by appeal, particularly as private developers bring land along with them and developers are aware that there are real market the availability of land is one of the areas that has opportunities, real demand for products that they been criticised when the housing associations have could provide and yet a notional capacity has been not been able to deliver the programme given to reached. The change in the planning regime could them. In a way there are advantages to competition have long-term damaging eVects. By rationing the Northern Ireland Affairs Committee: Evidence Ev 139

15 June 2004 Professor Chris Paris and Mr Paddy Gray supply of land you will inevitably increase its price, Ireland where they introduced the 20% rule and I particularly in hotspot areas and, therefore, my know from anecdotal evidence in the South that is response to your question—I am afraid it is a long not working particularly and you have these people winded response to a quite precise question—is that who do not want to have social housing built or I believe developers in planning policy are more integrated with private housing. I believe that having rather than less likely to increase the real cost of land a more localised approach to proportions and to and, therefore, aVordability issues for first-time land that is made available, and bringing private buyers. developers in, something which I mentioned earlier, the possibility that private developers bring land with them, and how you can harness part of that Q321 Mr Swire: Thank you for that. My next two land promoted towards social housing would be questions are on the same subject and you have gone very much a local issue I would suspect. some way to answering them already but I will ask them. In what ways might the planning system be used to contribute to the delivery of suYcient Q322 Mr Swire: Do you think, as a matter of numbers of aVordable and social housing in interest, that aVordable housing is a good phrase or Northern Ireland? You have gone some way to a rather hackneyed phrase? It is used as a panacea answering that already. Finally, what steps can for all ills in my part of the country, which is the government take to ensure, as you describe it, “a South West of England. I would say it means continuing supply of land at prices which enable diVerent things to diVerent people. What is private and social housing agencies to provide a aVordable to someone on a £9,500 annual salary is range of dwellings types and at a range of costs totally diVerent from what is aVordable to someone commensurate with community capacity”? on £20,000 a year. Do you think it is a phrase that Professor Paris: I am aware that you have been muddies the waters rather than contributes to the discussing the planning policies at some length, and debate? in particular PPG12 which does seem to have taken Professor Paris: It is a useful slogan to flag up a a rather long time to have emerged in its fully shaped concern. Over time households who are otherwise form. I think that is because in the past there was not very similar may find it harder to buy, but of course a clearly articulated policy of over-zoning given the at other times they may find it less hard. Analytically distinctive social divisions in Northern Ireland to it is very, very flabby and it falls apart. It can be used ensure that there would be an ample supply of land sensibly and well, and is used sensibly and well, by for both communities because sometimes a responsible agencies who take the same sort of development will only take place in certain areas by approach that we do in the Net Stock Model, which certain developers, we are all aware of that. is specify very carefully what your assumptions are, Personally, for technical and not political reasons, I what the data is, the extent to which the data are would favour a more permissive, less highly comparable over time, and the extent to which real regulated planning regime because I believe that it is changes are recorded. I think that when the term is very diYcult at a local level to predict and provide, used to talk about fairly long sweeps of time, say 25 or plan, monitor, manage, whatever term you want years, it really becomes very, very meaningless to use, to ensure that there is suYcient land coming because household composition has changed so on stream over the medium and longer term. much, as has the pattern of labour force Bottlenecks occur and often land that has been participation, and the extent of single and dual identified as potentially suitable for development, in incomes in diVerent types of households, so you are practice is not from a market point of view. My first not comparing like with like. If you can compare like view would be not to seek to regulate too tightly, to with like and say that in, say, South West Bristol provide the possibility, as is the case in a more tightly over a particular period of time the average of first- regulated environment across the way, for social home buyers buying a house at the median price that housing agencies to be able to make special cases for first-home buyers are buying, if that ratio changes planning permission and, if necessary, to acquire over a five year period I think that means something. land over and above figures that may have been It is how the term is used. developed based on a market need. I think that may Mr Gray: I would agree, I think it is an area that be particularly the case where an agency is working raises an issue, aVordability always does, and it with one or other community in an area where it is a depends on a person’s own perception of what is minority and that may be the case in dealing with aVordable and what they like to spend their income some other groups, in particular how the Housing on. I know many people who have purchased their Executive is able to deal with the needs of Irish dwellings, particularly given the recent house price travellers in Northern Ireland. Those needs have to raises, would not see themselves as living in be addressed very carefully to make sure that they aVordable housing even though they live in owner- are not being squeezed out by a too tight occupied housing. Maybe accessible housing is a regulatory regime. better term to ensure that there is accessibility for all Mr Gray: Chris has the planning background so I and label it as that. It is like social housing itself. My will leave him to answer the planning questions, but argument is that social housing is not just public I think the proportion of land that may be available sector housing associations, the private recent sector for social housing is something that could be looked is now providing for social housing. At a recent at, particularly in areas where there are aVordability conference that very point came up. We were talking problems. We have the experience of the Republic of about non-profit and social housing but my Ev 140 Northern Ireland Affairs Committee: Evidence

15 June 2004 Professor Chris Paris and Mr Paddy Gray argument is I would not suspect many housing of the house sales are now ending up in the private associations are non-profit because of the group rented sector which does not have a selection scheme structures and other companies that have been set for tenants, so therefore those tenants that were up, not so much in Northern Ireland but certainly living in low demand areas are coming in and in looking across the water. It is the same sort of issue; some cases—I am not generalising in any way—are it is one of these terms that we have latched on to. transporting antisocial behaviour into areas that would have been very stable areas in the past. I have noticed in anecdotal evidence in certain areas, but Q323 Mr Swire: Thank you for that. I am going to also in research that I have been engaged in, that in ask three more questions turning to house sales. The some areas that are very high demand and popular first is how do you view the proposals contained in the estates are beginning to become unpopular. It is the recently published DSD consultation document getting the balance right. Where do you sell your on the House Sales Scheme? Secondly, what house sales? We have this problem in Northern negative impacts might the House Sales Scheme Ireland with two communities existing; do you proposals have on housing associations? Finally, introduce the same House Sales Scheme for the what impact might the proposals, which may reduce associations and the Housing Executive? Do you the popularity of the scheme, have on funding for the have a small housing association sector and do you NIHE given that receipts from house sales fully fund want to make that sector even smaller? You have the NIHE’s capital programme? had a very successful House Sales Scheme in the past Mr Gray: To begin with the House Sales Scheme, but will that continue as houses get older? We are that is still out for consultation. I believe there back to the residualisation argument that we spoke needed to be a comprehensive review of the House about at the beginning. Increasingly, the less Sales Scheme and that is something which has desirable properties are remaining in the public happened across the water and has been much more sector. How can you change a confidence in certain varied across the water than it has here, we tend to areas when you are starting oV with those get the one scheme that is introduced for the properties? In terms it is a tenure transfer from Province. My argument at the end of the day is we public sector to owner-occupation to the private have a particular problem in Northern Ireland, and rented sector. I am probably painting a very bad I am sure you are quite aware of it, in that we have picture here but I foresee problems with continuing two communities that look suspiciously at each a robust house sales policy and certainly I welcome other. I have noticed in Scotland and I have noticed any review of that. I do believe that people should in England that people have looked at area based earn the right to buy their houses in the public sector House Sales Schemes, they have looked at high and I do believe that taxpayers who are in low demand areas possibly not selling in those areas and income groups who are buying properties and look low demand areas selling or transportable discounts suspiciously and unhappily at people getting a and so forth. I do not think that would work in Housing Executive property and buying it oV at a Northern Ireland given the fact that in my case high substantial discount can cause problems. demand areas can be associated with, say, Catholic Professor Paris: I would say that having looked at areas, Nationalist areas, and low demand with the consultation paper there is nothing in it that I Protestant areas, particularly in North Belfast. If would have any problems with technically. In terms you were to introduce a House Sales Scheme in one of personal preferences and views, I do not feel there and not the other you would have a problem in the are any serious issues there that would damage the sense that people would see discrimination where interests of either community. I believe that it is some people were getting high discounts and others quite cautious, modest in its proposal. There have to V were not. In terms of the e ects of discount itself, we be similar schemes for housing associations on V are obviously still better o in Northern Ireland with equity grounds, equity targeted social needs are lower house prices and higher discounts, a £36,000 important in Northern Ireland. There can be no discount that exists at the moment. I know that is place for not allowing similar schemes. The proposed to reduce but it would still be higher than Northern Ireland Federation of Housing many parts of the South of England where you come Associations has made a sensible submission on that from. In a sense it is getting what is right and what and has pointed out that funding must come to the taxpayer would see as an appropriate means of enable those sales, not to damage the housing subsidising social housing, and I think that is associations’ capacity to attract private finance. important. The House Sales Scheme has worked in Your last question is in many ways a crucial one. I the past. We have this new emergence of the private have not given suYcient thought to that to be able to rented sector that is beginning to be located in ex- give a definitive answer but my immediate response House Sales Scheme properties. The very essence of is yes, it could have a significant impact on funding the House Sales Scheme when it was introduced was if sales continue. If sales stop then that would be an to introduce stability and sustainability of income stream that stops. Because all aspects of communities, people taking a pride in their areas, housing are dynamic and changing you never get a even going right back to the priority estates projects solution for all time, a fix, and that is something that in the 1970s in GB when they oVered this as an will need to be monitored very carefully. ownership of an area based on property, people wanting the environment to get better, they wanted Q324 Mr Bailey: Can we just turn to co-ownership. to have a stake in their area. What is happening in In your submission you suggested that it was time to the private rented sector at the moment is that many look again at the co-ownership scheme on the basis Northern Ireland Affairs Committee: Evidence Ev 141

15 June 2004 Professor Chris Paris and Mr Paddy Gray that it is really just enabling people to buy earlier. on the income potential of those who take up co- Given the fact that the average income of home co- ownership at the lower end of the scale to see if they ownership participants is only £13,500 a year, how could have bought a house on the open market. You do you sustain that argument? say that some research was done but it was ten years Professor Paris: There are two issues here. Firstly, I ago and it was not published, is that correct? examined Alan Crowe’s evidence and clearly if the Professor Paris: Yes. situation now is such that the average income of households utilising co-ownership is so low and so Q326 Mr Bailey: However, without research which much lower than other first-home buyers then it has would demonstrate your assertion that those people repositioned itself significantly. I was not aware of who do take up co-ownership would have been able that particular data. Looking at co-ownership over to aVord houses on the open market then there is still a long sweep of time, and I was involved in a study a role for it to play but it is worthwhile, in eVect, about ten years ago where we examined the continually keeping the situation under review to socioeconomic and demographic characteristics of ensure that it is targeted at those who need it. Would people purchasing with co-ownership as opposed to that be a reasonable assumption? people purchasing anyway, there was no identifiable V Professor Paris: I cannot give a yes or no to that di erence at that time. That report was never exactly because I am aware that there is current published because there was no obvious reason in research being done. The question of who would not terms of public benefit to operate the co-ownership otherwise buy is an interesting one because if people scheme. What was proposed was that the scheme have bought through co-ownership but they would should be much more carefully targeted at people on not have been able to buy in the private market, let lower incomes, although it seems to me there is an us say during the 1980s, they would then have anomaly between arguing it should be focused on become Housing Executive tenants and people with lower incomes and that the threshold subsequently been able to buy at discount, so they price should go up in that there is a maximum price would have become home owners but not in the of a home to buy using co-ownership. I would not private market. The idea of not otherwise being able have thought that many people on a £13,000 a year to buy refers to such a changing world where 100,000 income could be looking at houses of over £100,000. Housing Executive homes have been sold. There are It is how it is targeted and at whom. If it is targeted technical issues for any scheme that has income well, and particularly if it is targeted at people with thresholds or income limits as a way of allocating very low incomes buying at the lower end of the eligibility because people would often seek to take market at times of high house price inflation, there is advantage of such a scheme while their income was a function there. My concern in the submission to still suYciently low to enable them to do so. When you was with the notion that co-ownership has the Australian Federal Government brought in its helped people in the past who otherwise would not first homeowners’ scheme, the place where the buy. Remember, co-ownership was introduced in greatest number of people took up the scheme was the late 1970s partly for political reasons because Canberra and a very large proportion of them were right-to-buy was being advocated by one political relatively young civil servants who had a lifetime’s party and its major opponent objected to right-to- earnings growth ahead of them but were still eligible. buy but wanted to find a way of encouraging better I think you need to look at that too. oV council tenants to become home owners without their wanting to be home owners. The level of home ownership in Northern Ireland at that stage was Q327 Mr Bailey: Essentially what I am saying is for probably 20 percentage points lower than it is now. that assertion to be totally correct it does need The main vehicle for enabling low income people research which backs up the income pattern that you who would not otherwise have bought in Northern have just described. Ireland, as in Great Britain, has been the sale of Professor Paris: Yes, we would need to know that. council houses or the sale of public housing. I think Also, in a sense it is incumbent upon an agency or it is important to have an agency, or agencies, organisation that claims that its customers would perhaps in Northern Ireland an agency makes more not have been able to buy to demonstrate that. sense, that is well-targeted, well-focused on enabling people who are right at the margins of home Q328 Mr Bailey: Yes, that is just the reverse of the purchase to do so. Again, in terms of the dynamics argument. In eVect the argument is unproven either of how housing systems and housing markets work, way at this stage. there is a question on the stage in the life cycle at Professor Paris: On the basis of current data that has which people are using co-ownership. I stand by my been presented to you I would say that it is unproven comment that I think it should be looked at very but it may have changed significantly over the last carefully. I understand that research has been 10 years. ongoing and I would welcome the results of that work. Q329 Mr Bailey: Can I just move on. Given the fact that the co-ownership scheme is supposed to have Q325 Mr Bailey: To a certain extent you have been a net contributor to government finances, why anticipated my line of argument, but if I can just get do you think it has not been looked upon rather it clear. For your original assertion to be totally more favourably by the Government? It is not often justified it would be necessary to do some research the Government looks a gift horse in the mouth. Ev 142 Northern Ireland Affairs Committee: Evidence

15 June 2004 Professor Chris Paris and Mr Paddy Gray

Professor Paris: We were discussing this earlier. It incremental which increases the interest rates. We do might be able to be an even greater net contributor not have one for four years and then we have three if it just operated like a private landlord and bought come at once, a bit like the old bus scenario. If those houses, charged the market rent to whoever wanted interest rates start going up this would have an eVect to pay that market rent and then subsequently sold on co-ownership at the other end of the market, in the house and as a non-profit organisation it does fact it might attract more people into co-ownership. not have to pay capital gains tax on that sale and that The reality is that mortgage repossessions could be could make even more money for Government. Is a problem at a time when we have an increasing that a public policy purpose? The issue is where does pressure on alternative forms of tenure in Northern the profit come from that it is able to plough back Ireland besides owner-occupation. into Government. The profit comes from its untaxed capital gain on the dwelling that the co-owner has Q331 Mr Bailey: That is interesting because I have been maintaining for that period of time. I can see had conflicting reports on this. Wearing another hat, that there are attractions in this kind of I am Chair of the All-Party Group on Building entrepreneurial quasi-government activity and I Societies and Financial Mutuals. My local building suspect on balance—no, I am sure on balance—that society last year, the West Bromwich Building co-ownership does little or any damage, but is it not Society, informed me that even a tiny increase in also fuelling net demand and so may raise some of interest rates would lead to a surge in repossessions. the questions that your colleague was raising about I asked the Building Societies’ Association last any schemes that add to the demand side without month whether the increase in interest rates had led aVecting supply side issues. to that and they vehemently denied it on the grounds that the proportion of outlay to income was such Q330 Mr Bailey: I think that is a fair comment. Can that there was still plenty of slack there. You feel that I just go on to mortgage possession? The latest as yet the figures are not conclusive one way or Northern Ireland Housing Bulletin, published in another, is that correct? April, highlighted a 65% increase in actions for Professor Paris: For Northern Ireland, I think that mortgage possession. Can you see any significance in is the case. I do not see any major problem emerging. terms of house sales or co-ownership policies? If I were talking about Southern England I would V Professor Paris: It is a 65% increase from a very low probably take a di erent view. base, of course. I would want to hold my powder dry until I have got a year’s data. It could be a blip, it Q332 Chairman: You said it was a rather small base. could be an indication that there may be an emerging Do you know the figures in terms of how many problem. I do not think that one quarter’s data additional possession actions that 65% deals with? would allow us to say that. What we have said in Professor Paris: I could not tell you that. As a Northern Ireland for a very long time, and I have proportion of all mortgaged properties I know in been here 12 years now, is that there never was the Northern Ireland repossession actions were much same boom-bust as happened in large parts of lower than any other constituent part of the UK but England. There was never that surge of negative I do not have that figure to hand. equity and repossessions. The figures have been very low in a relatively steady, relatively stable market. I Q333 Mr Bailey: Can I briefly move on to the private do not think that this is an emerging issue but I am rented sector. Are you satisfied that the recently prepared to change my view if the facts change. published strategic framework on “Renting Mr Gray: Again, Chris is quite right, it is coming Privately” contains appropriate measures to ensure from a very low base. Sometimes 65% can seem quite that the private rented market plays a positive role a lot but in reality it is not that much. It is actions for in meeting housing need? mortgage possessions that were begun, not actual Mr Gray: Again, to declare an interest, I have been possessions themselves. Whether or not that will involved in private rented sector research follow through is another part of the argument. commissioned by the Northern Ireland Housing Certainly I feel there may be concern given the Executive and we have already published phase one nature of house price rises in the last couple of years, of that research and are currently working on phase particularly in the Greater Belfast area and even two. If I can make some general comments on the more so in the North West area. Again, to go back actual strategy and some of the areas that it covers. to the aVordability issue, maybe the accessibility It is a useful sector in the sense that there are issue or whatever term you want to use, the question alternatives for people who cannot gain access to is whether or not people are pushing themselves to Housing Executive properties. The problem is that the limit in order to come on to the home ownership in some areas it has become an alternative to market and where there is not an availability of Housing Executive properties and in many cases it is alternative tenure people are being forced into creating voids, particularly in the Mid Ulster area taking out mortgages that are much beyond their where there are Housing Executive estates that are means, and in some cases you might have mortgage beginning to have empty properties because tenants companies lending up to five or six times incomes. are moving into the private rented sector with better That was a product of what happened in the late quality housing, in many cases new housing. In 1980s in Britain, particularly in the South of relative terms house prices are still quite cheap England, whereby people were taking out mortgages around the Mid Ulster area and around the smaller that they could not aVord. Now we have the slow towns and villages and speculators are buying up Northern Ireland Affairs Committee: Evidence Ev 143

15 June 2004 Professor Chris Paris and Mr Paddy Gray new properties to rent out. People are moving into sector but, on the other hand, we must not regulate those properties who would normally have gone into out investors in that sector because it is a good, Housing Executive property with full support, or vibrant sector that should be pursued. maybe 90% support, of Housing Benefit. Obviously there is a question as to the validity of that. Is that Q334 Mr Luke: Talking about the private rented something that should be happening? Should we be sector and standards, the next question I want to ask encouraging a sector that is virtually supported by is to do with standards. We have had evidence and public funds as an alternative to houses that already discussions with witnesses about the introduction in exist and could be well utilised by the very Northern Ireland of a Decent Homes Standard population that is moving into the private rented similar to that now being introduced in England and sector? That is one issue. The other issue I mentioned Wales and that has been generally favoured. Given earlier was those house sales and how this tenure the relatively low level of poor quality housing in transfer of moving back into the private rented Northern Ireland, would a broadly similar standard sector might well contribute to the destabilising of be suYciently challenging here in the Province? certain areas given the major tenants that maybe Professor Paris: As you have probably been advised would go into the private rented sector. Anecdotally, by other witnesses, the Northern Ireland Housing because I cannot report at this stage on any areas of Executive carried out the House Condition Survey research, we are only in the early days of the second in 2001 and I gave them some advice as part of that phase, we are finding that there are disruptions to process. In one of the chapters the Executive what would have been seen as high demand housing incorporated the use of the Decent Homes Standard estates. Certainly I do think that a good, vibrant to see how that would work in Northern Ireland. private rented sector is important and one that is not The Housing Executive has been introducing that overly regulated because that will force investors sort of approach for some time now. I think that a out. There has been a hefty increase in landlords Decent Homes Standard, like any such measure, is a investing, particularly landlords with small new aspiration, it reflects standards are rising. I do portfolios. In the past the tradition has been that you not think there will be any technical problems in have had landlords with very large portfolios introducing a Decent Homes Standard in Northern operating in certain areas. Now we have a Ireland. I think my view is pretty much the same as proliferation of landlords with one or two that that you have heard from oYcials in properties. How we harness the management of government departments and the housing sector. those properties is important. At the moment we have regulation in the housing and multiple Q335 Mr Luke: One of the figures that came out of occupation sector but not in the ordinary private that House Condition Survey was that to a certain rented sector, as it were. We have a voluntary extent Northern Ireland did not do so well with licensing scheme that has been introduced with the regard to the thermal comfort criterion. The Scottish proposal for a mandatory licensing scheme. On the Executive has mounted a very progressive policy, a one hand we need proper regulation for what could heating for all policy, especially for all those old age be quite a vibrant sector but, on the other hand, we pensioners who can have heating introduced for need not to over-regulate and push out investors free. Would a similar sort of scheme be available in from that sector. I think that is very important, that Northern Ireland? we follow that route. On the basis of the private Professor Paris: We do not get quite such cold rented sector becoming an alternative to social winters as some large parts of Scotland but thermal housing, why can people not have a choice to move comfort is a very reasonable measure. If the from one property to another but Housing Benefit Assembly or direct institutions, or whatever, should should not be supporting high quality private rented want to introduce such a measure I cannot see any sector accommodation at the expense of good technical reasons why they could not. The Housing quality public sector accommodation. I was Executive is taking a lead role in energy eYciency involved with the Social Development Committee and better use of energy. when it launched an inquiry into social housing and Mr Gray: I think in the House Condition Survey on one of the areas we looked at was the accreditation the figures I have to hand that included something of landlords and something which I suggested at the like 70,000 Housing Executive homes that did not time was that maybe we should have an meet the thermal comfort standard and obviously accreditation based on a tourist board or a star that is important. As regards the decent standards system whereby you had landlords reach certain for houses in Northern Ireland, the targets should be accreditation given the standards that they could elderly and vulnerable people to begin with, the provide, so people would know exactly what they people who cannot aVord to do it themselves. On the were buying into. There are basic standards that we wider role of private sector renewal and ensuring all accept that should be there but, building on that, decent quality standards in Northern Ireland, I if people wanted higher standards then they could believe in the past we have concentrated too much pay for it themselves with a level of support that on the unfitness standards without really maybe the new housing system when it is revised in considering levels of disrepair in targeting grants. GB and might come in here as well will allow and The 2003 Housing Order has allowed for more give them housing credits. At the moment there is a targeting of discretionary grants in certain areas, need for one regulation covering the issue and and I welcome that, but given the fact there is maybe that should be throughout the private rented virtually no new building from the Housing Ev 144 Northern Ireland Affairs Committee: Evidence

15 June 2004 Professor Chris Paris and Mr Paddy Gray

Executive, stock will be getting older, we should not Northern Ireland believed that sites should be made wait until they become unfit before we invest in those available for Irish travellers but that a much smaller properties, we should be looking more at the proportion of people would have been prepared to disrepair, looking for something similar to the accept such a site next door to them. It is not really a Decent Homes Standard, or Quality Homes planning problem, it is a social issue and how people Standard you have in Scotland. would react. Clearly at one level, yes, if every development is lifetime homes then that would Q336 Mr Luke: We had a very emotive session overcome that dimension of it, but I think you may yesterday afternoon on another inquiry to do with also find that there would be some objections to any issues for disabled and handicapped people. One of proposals for social housing development. There the things that came up was to do with the issue of could be a conflation between the specific needs planning of these kinds of properties. Do you think group for whom a development is being undertaken the Northern Ireland Housing Executive could do and the fact that it is social housing. Some of the more to provide housing for those handicapped and housing associations, particularly ones that have disabled people who are still living in poor quality developed expertise in working with people with housing? physical disabilities, seek to ensure that they do not Professor Paris: Every landlord could do more. I just have concentrations of folk with physical had an excellent PhD student some years ago who disabilities but that there should be an integration of worked on exactly this issue. What is at issue is what all capacities within new developments. resources are available for landlords to do more and whether resources are best used to target the Q339 Mr Swire: As far as I can see, the problem with particular needs of some groups now or to move that is you talk about lifetime homes, are you towards a situation where lifetime homes are suggesting that all new build should be usable by available for all. You are not going to get that in the disabled groups because if you are you are talking private sector generally, it will be very hard because about huge cost and building implications. Having a of the real costs. I am absolutely certain that the house designed for somebody with a severe disability Housing Executive and housing associations, means you have to change the width of the doors, particularly in their new build, are very conscious of you change the kind of bathroom they have to use trying to introduce lifetime homes concepts and it is wholly unrealistic to do that, is it not? wherever possible, but very often this is constrained Professor Paris: It is wholly unrealistic and I am not by resource availability. suggesting that. I am suggesting that there are some intermediate measures, particularly in terms of Q337 Mr Luke: We heard that the planning system ground level accessibility, that do not cause physical Y was not strong enough or su ciently flexible enough problems for other people, issues of there being an Y to allow su cient provision for housing for the adequate downstairs toilet facility in new disabled. Is there anything that could be done to developments, or a toilet on the one level where most change planning criteria rules to accommodate that? of the living is done. That is why a little while ago I Professor Paris: I do not understand how the said that lifetime homes could not possibly be done Y planning system in itself could make it more di cult. across the board in the private sector because of the It may be that particular building regulations on sheer cost of such provision. I know from personal Y their application could cause di culties. experience, some specific facilities must be provided for people with particular physical disabilities. Q338 Chairman: It is an emotive subject but there were suggestions to us that if housing associations were planning homes for the disabled community Q340 Chairman: You will forgive me for not then the communities around them would object, providing the source but it has been suggested that whereas if we were to build all new buildings as if there was an expectation at new build for lifetime lifetime homes then each home would be able to be homes then the cost per property would be less than used by any member of the community irrespective £1,000 per home and that an extra bit of timber, a of their ability or disability. I think that was what bigger hole in the wall space, is not necessarily a was being suggested to us, that where there were build cost, the provision of plumbing which can be planning applications which suggested that these later adapted is very little in terms of build cost, so were homes for people with special needs that people whilst we say it is unrealistic, if there was a policy were concerned and raised objections and even that ensured all new build was adaptable, the cost politicians were joining in that debate with a would not be that great, would it? negative slant by backing community objections to Professor Paris: Absolutely. That was the view that having diVerent people in their communities. your colleague came back on saying you can Professor Paris: I understand the point now which is introduce lifetime homes, but that does not mean it is not the planning system in terms of a regulatory that every home has a chair lift, that means that framework, rather it is the system within which there is a capacity for adaptation and subsequent people can object to development that is the problem unadaptation in dwellings. It is a design issue. I do and that sometimes in a democracy people will not think the costs are huge. object to things that others of us may support. The Mr Gray: I was going to come in on that. Before you study that I did some years ago of policies aVecting came in there, Chairman, I was going to talk about travellers found that the majority of citizens in the Chartered Institute of Housing study that was Northern Ireland Affairs Committee: Evidence Ev 145

15 June 2004 Professor Chris Paris and Mr Paddy Gray carried out on lifetime homes in Northern Ireland they are housing people in need and would like to and I think that suggested costs as low as £500, if my house more people given the length of the waiting recollection is right. lists. Professor Paris: I undertook some work through the Q341 Chairman: That was the one I was referring to. university together with a senior management Mr Gray: That depends on the nature of the consultant from England on the topic of targeting disability. Chris is quite right in saying that we are social need for the Housing Executive. This was not going to put chair lifts in every single dwelling three years ago. They were very conscious of the but there are a number of adaptations and those issue and were making every eVort to ensure that adaptations, for instance a downstairs toilet, would every part of their work was highly focused on suYce for many people with angina, people who aspects of social need and they had proofed across want to live downstairs in a family home, and we all of their activities that concentration. I am very have quite a lot of family homes still in existence. confident that the Housing Executive is extremely The nature of the disability would dictate the type of well focused. adaptation that was done uniformly. Certainly in social housing they have adopted those lifetime Q344 Chairman: Housing associations? home standards. Whether or not it would be Professor Paris: To my knowledge, not all housing feasible, at a cost of £500 or so it would not be associations are necessarily so well focused. One of unrealistic to introduce that across the board. the issues that one has to bear in mind is that housing associations come from lots of diVerent bases, some Q342 Chairman: When the population of the world are very small, very much community based, so they started to become taller we soon adapted doors to cannot operate on that same sort of basis. I have no meet our needs. There are still some 15th century doubt whatsoever that the larger associations, homes where you have to duck to go through the particularly the Province-wide or metropolitan door but new build is adequate for us to live in. housing associations, are also very much following Surely we are not talking huge amounts of cost there. the same philosophy, not least because the Housing Professor Paris: Wimbledon is installing wider seats Executive, DSD and local politicians would not let because we are not as slim as we once were. them not be.

Q343 Chairman: Absolutely. We are on to the final Q345 Chairman: My last question, unless my furlong, you will be pleased to know. I have a very colleagues indicate otherwise, is in relation to what quick question on targeting social need. It may be a has been described as Catholic/Protestant housing bit unfair asking Mr Gray this question, but do you need. There does seem to be a diVerence between the have any concerns about the performance of the evidence given to us from the University and Housing Executive and/or housing associations in suggestions that have been made by some of our their role of targeting social need? witnesses in as much as most people were able to Mr Gray: I do not personally have any objections to identify issues related to North Belfast where there is the way they actually target social need. I know the obviously a need for housing in one part of the TSN standards that are set within the framework for community whereas in another part of the Northern Ireland and, given the nature of the community the needs were diVerent, they were not tenants who live in Housing Executive and housing about housing supply, they were about need for association dwellings, the very high levels of modernisation, need for improvement. The Housing Benefit dependency and the acute need that University study took a wider look at Catholic/ many of those tenants have, obviously they are Protestant housing need and suggested that across successful in dealing with those areas of need. To Northern Ireland there were diVering needs widen it further, we have a specific problem in depending on family types, depending on the size of Northern Ireland where we have two communities in the property. Would you still hold out that there are co-existence and in some cases that may well stifle diVering needs in terms of Protestant housing and certain areas where they have to target need or they Catholic housing? are stifled by territorial issues in the sense that there Professor Paris: Absolutely. The terms “Protestant may be low demand and low need in one area but housing need” and “Catholic housing need” are a bit they cannot actually build into those areas. North sloganistic. They are indicating there is something Belfast would be a classic example of that where there and it was never meant to suggest that there are physical separations between estates and Protestants only need rehabilitation and Catholics being able to target need in certain areas. Province- only need more housing, that is a gross wide there are what we call peace lines in the mind oversimplification. In our study we were looking at whereby people operate diVerent behavioural demographic trends and some social aspects related patterns depending on which community they come to those demographic trends. When we looked at from and whether or not they can target uniformly sub-regional data aggregates, what came out very throughout the Province is something that is stifled clearly was that there are diVerent demographies in by that particular problem with two communities diVerent places that reflect the diVerent population and trying to house two communities. Certainly I structures of the Catholic population and the know from working in the housing association Protestant population such that, for example, movement and looking at the nature of the tenants average household size in Northern Ireland in the the Housing Executive targets that at the moment last Census was 2.65; in parts of East Belfast and that Ev 146 Northern Ireland Affairs Committee: Evidence

15 June 2004 Professor Chris Paris and Mr Paddy Gray area where there is a disproportionately high and have begun to monitor their estates. My Protestant population average household size is 2.4; personal view would be do not force integration. in parts of the west and the south where there is a There are problems with that in the sense of violence disproportionately higher Catholic population and people not wanting to live together and in times average household size is 2.8 and 2.9. We know that of troubles, like the Marching Season or whatever, the great majority of people who will be here in ten people will move back into those areas. years’ time are here already just 10 years younger, so V there are di erent trajectories that those populations Q347 Chairman: What we are talking about is will follow regardless of what else happens. I do making sure that our future policies are reflecting the believe that there are significant diVerences across V change in demographic need in its totality. I would Northern Ireland as a whole and that the di erent imagine that more significant than any issues related demographic patterns partly explain incidences of to the fact that there is need for Protestant housing hotspots and relatively low demand. I think that and Catholic housing would be the fact that there is work should be taken further, but then, as an a demand for more single living in both communities academic, I would always be looking for the next in terms of young people and elders. Would that research grant. I would be very happy to take that be fair? work further. Mr Gray: I think that the current waiting list is 44% who are single people. How that is broken down I Q346 Chairman: I think that is a very valid point. We am not sure but in general there is a newly emerging need to be very honest about the diVerences in faith, demographic sector there that needs housing and culture and religion that people’s diVering lifestyles traditionally our housing has been family housing. will have on their diVering needs. There is a similar issue in GB in respect of the Bangladeshi community Q348 Chairman: Gentlemen, is there any question who are more family focused around the elders of we have not asked you that you expected to be the family staying within the household where there asked? is a greater need for larger properties because of the Professor Paris: There was one issue that I diVerent generations that will live within the family mentioned in the Schools’ submission that I would home. Any study in Northern Ireland along those urge you to think about, which is the distinctive lines would be very welcome. relationship between Northern Ireland and the Irish Professor Paris: Yes, indeed, but for many years Republic in that it is increasingly my view that what nobody talked about the conflict. It was as if public is emerging is more of an all Ireland housing market policy could continue, and often did continue very than Northern Ireland as part of the UK housing eVectively, managing in a diYcult divided society. It market. There are interesting diVerences, not least was in the North Belfast area that I think the terms here, because if you travel three to four miles you can started to be used by public agencies recognising that see new suburbs of Derry/Londonderry, depending there are many colours in society, not just the on what your Committee in its wisdom wishes to call uniform grey. It is a recognition, as you rightly say, this place, that are actually in County Donegal and that there are issues to be addressed. It is a step along there are other issues to do with questions such as the the way of addressing those issues and, therefore, I rating of second homes. I know that is a live issue believe it is a positive step. across the water, the view is taken that second home Mr Gray: Chris is right that for a long time it was not owners should be charged either full rate or nearer discussed, it was just a natural formation of the full rate. There would be an equity issue in Northern population that Catholics lived in Catholic areas Ireland because many Protestants have their second and Protestants lived in Protestant areas and very homes in North Antrim whereas many Catholics much more so in social housing. What we have had have their second homes across the border where in Northern Ireland is not just the past period of they do not have to pay rates. There are a number of troubles, which was a long period, but we have had issues to do with eligibility for social housing, a number of those over the last 100 years and many diVerent finance systems for both capital academics have traced what they call a ratchet eVect expenditure on social housing and for the continued in the sense that people may live together after a support to residents on low income in social period of conflict but not in the same way as they housing. Some of the issues in Northern Ireland are would have done prior to that period of conflict and in a context that may diVer significantly from other that has become much more acute. Even now, parts of the United Kingdom. although we have had a “ceasefire” since 1994, we Mr Gray: I would like to address the issue of who still have very, very heavily segregated communities. will deliver and manage social housing in the future There are something like 400 people on the waiting in Northern Ireland particularly given the current list who are looking to live in mixed communities review of public administration that is taking place and I know the Housing Executive is addressing that and is due to report early next year. Will local at present, but in the main people do not want to live councils, or a reduced number of local councils, have in those communities. That has become an issue. I the capacity to take back some of the powers that think the catalyst was the report that was produced they had, say, 30 years ago? I know those issues are in 1998 by the Policy Research Unit which very being debated at the moment and the Committee much recognised the diVerent traditions, recognised might want to address themselves further on that the housing conditions and so forth, and since that review that is ongoing on how that will relate to the time the Housing Executive have taken stock of that future management and delivery of social housing. Northern Ireland Affairs Committee: Evidence Ev 147

15 June 2004 Professor Chris Paris and Mr Paddy Gray

Secondly, the housing association movement and housing associations formed over the last 25 years, the way that the development programme has been is that healthy for development of communities, for spread out in the past, has that been spread out community based issues? The other point I made in appropriately, have smaller associations been my submission was the increased competition squeezed out, particularly community based coming from other areas, other parts of the country. associations? Is there a need to revise policies on how Chairman: Gentlemen, you have been very helpful housing associations are formed? Other than the both in the written evidence and today in your verbal Rural Housing Association, we have not had any evidence. We thank you, your evidence will assist us in terms of our report.

Memorandum submitted by the Housing Rights Service

Housing Rights Service Established in 1964, Housing Rights Service is an independent voluntary organisation working to prevent homelessness and eradicate poor housing conditions throughout Northern Ireland. We provide a range of practical support services to promote the rights of people in housing need and seek to influence policy to achieve decent, safe and aVordable housing as a basic right for all. Our advice and representation service is available to members of the public and to organisations acting on behalf of people who are experiencing housing problems. Last year we dealt with around 7,000 enquiries. These covered a broad range of issues including homelessness, finding and maintaining accommodation, finance matters and housing conditions. Our evidence is based on the experience of those who use our service.

Introduction 1. Housing Rights Service welcomes the Northern Ireland AVairs’ Committee’s Housing Inquiry and view it as an opportunity to address the serious issue of increasing demand for social rented housing and continuing decline in availability. We look forward to the findings and recommendations.

Context 1.1 It is a Government objective to provide everyone with the opportunity to access decent, aVordable housing. However, the shortage of aVordable housing is preventing this objective from being met and is also undermining key social policies of promoting opportunity, tackling social exclusion and preventing and alleviating homelessness. There are a number of reasons for this. The House Sales Scheme, for example, is significantly contributing to the residualisation of the social rented sector and there are serious concerns about implications of extending the scheme to Registered Housing Associations. In our view, the priority of social housing policy must be meeting need and not promoting owner occupation. The loss of social rented stock through house sales, combined with the insuYcient rate of new build social housing is resulting in an increased dependency on private rented accommodation. In our experience, many individuals and families who would traditionally rely upon social housing are now renting privately, normally at the lower end of this market. Here properties are often unfit or in disrepair and both tenants and landlords are largely unaware of the law. Limited security of tenure and substantial shortfalls in Housing Benefit can leave tenants, many of whom would be considered as vulnerable, being threatened of eviction. Further examination of these issues is provided below.

Rising Demand for Social Housing 2. In Northern Ireland, the Waiting List for social housing and the numbers in “housing stress” (ie with 30 points or more) has continued to grow in the last year. According to the NI Housing Market, Review and Perspectives 2004–07 (NIHE) in March 2003 there were 26,700 households on the list with around half (13,237) in housing stress. This represents an overall increase on the previous year of 717 households and an additional 750 in housing stress. Further analysis shows that the Waiting List is dominated by three household types: singles (44%), small families (26%) and older people (19%). In a two-year period to March 2003, more than half of the increase in the total number in housing stress is accounted for by single person households (the number of singles has grown by 40%). In addition, the number of older households in housing stress has increased by 22% and small families by 16%. 2.1 There are demographic reasons and environmental factors for the increase in the numbers on the Waiting List. However, we believe that further analysis is required into the length of time people spend on the list and into the availability of suitable accommodation for these applicants. Attention should be given to the situation regarding single people, particularly young people, who are disadvantaged by the points allocation scheme. It has become normal practice for young people to either remain on the list for a Ev 148 Northern Ireland Affairs Committee: Evidence

considerable period of time (normally with less than 30 points) or be oVered accommodation in areas of low demand where, without appropriate support and facilities, they can find themselves becoming homeless. In our experience people with mental health issues are also treated less favourably under the rules of the Housing Selection Scheme, a large part of which is based on assessment of functionality. Housing Rights Service would welcome a fundamental review of the Housing Selection Scheme to determine how eVective it has been in identifying and meeting housing need. We believe that users’ contribution to this process would be invaluable. 2.2 The availability of suitable accommodation should also be further analysed. In certain areas families can expect to wait for up to three years for permanent accommodation. Social housing options for those who chose to live in “neutral” areas are also very limited. There is also a shortage of social housing in rural areas and in some areas second homes are having a significant impact on the availability of local aVordable housing. 2.3 The rise in demand for social housing is partly due to the increase in homelessness. In 2002–03 a total of 16,426 households presented as homeless (a 16% increase on the previous year). Statistics show that the main reasons for homelessness are: breakdown in sharing arrangements/family dispute; “accommodation not reasonable”; marital/relationship breakdown and intimidation. Additionally, over half of those presenting as homeless are single of whom 22% are males aged between 26–59 years of age. 2.4 A number of measures are required to tackle and prevent homelessness including the provision of advice, support or mediation. However, homelessness would be greatly alleviated by increasing the availability of appropriate, aVordable social housing through building or acquiring new properties and reducing the number of sales. Continuing Decline in Supply of Social Housing

New build social housing 3. The social rented sector is continuing to decline. The increase of around 1,000 housing association stock compensates for less than one-fifth of the annual decline in Housing Executive stock lost through house sales and demolitions. Housing need is primarily being met through re-lets. However, the average annual figure for re-lets is currently just over 8,000 and is insuYcient in meeting rising demand. 3.1 The Net Stock Model used for assessing future housing need appears to have been under-estimating the number of dwellings required (indicating an annual need of 1,500). Using revised models and aggregate waiting list information, the Housing Executive predicts that there is a need for around 1,750 new social build dwellings each year. This does not take account of the backlog which is estimated at 2,500 between 2001–04. As waiting lists continue to grow, it is vital that revised new build targets are set under the programme and are met. 3.2 The Department for Social Development (DSD) has identified a number of problems aVecting the delivery of the new build programme. If housing planners and providers are to meet new build requirements, it will be necessary to examine how the DSD intends to address these issues.

House sales 3.3 During the past five years, around 5,000 Housing Executive dwellings have been sold each year. According to the Housing Executive it is “losing the equivalent of a large housing management district each year” (NI Housing Market, Review and Perspectives 2004–2007). Some of this stock is currently being relet in the private rented market. The House Sales Scheme in Northern Ireland, despite its revisions, continues to be more generous than the equivalent schemes operating in Britain. This must be viewed in the context of Northern Ireland already having a higher rate of home ownership than in Britain and also the highest ratio of homeless households. Alongside this, the level of need has reached crisis point in some areas. In our view, there are compelling reasons to rethink the Housing Executive’s scheme which appears to be increasingly out of step with government policy in Britain. 3.4 The current House Sales Scheme represents a significant incentive for tenants. The discount regime in particular provides a very generous subsidy for those wishing to buy. Alongside this, the cost of replacing homes lost through the scheme and of accommodating homeless households in certain areas has significantly increased. The extension of the scheme to Housing Association tenants will undoubtedly exacerbate the situation. Housing Rights Service believes that consideration should be given to incorporating the following measures into a revised scheme: — Extend the qualifying period from two to five years. — Cap the maximum discount at £15,000. — End diVerentials between houses and flats. — Increase the period over which the historic cost rule applies from eight to 10 years. — Extend the claw-back period to five years with increased financial penalties (with discretion to waive in cases of genuine diYculty) to help prevent profiteering from early sale and the property being let on the private rented market. Northern Ireland Affairs Committee: Evidence Ev 149

— Introduce a clause preventing the property being let on the private market during the five year period. — Allow social landlords the opportunity for “first refusal” to purchase when the property is resold. — Introduce safeguards to prevent property and lending companies oVering incentives to buy. 3.5 There are also concerns regarding the use of capital receipts from house sales. We firmly believe that these should be reinvested to fund the replacement of social housing stock.

Quality of Housing Stock 4. The quality of social housing stock in Northern Ireland is higher than in Britain. According to the 2001 House Condition Survey, however, there are still high levels of unfitness in some rural areas of Northern Ireland (8.5% or 18,000 of rural housing is unfit) and in the private rented sector were nearly 9% (4,300) of stock is unfit. 4.1 Whilst only a small percentage of housing stock is unfit, the 2001 House Condition survey shows that one third (206,000) of all dwellings fail the Decent Homes Standard (including almost 50% of Housing Executive properties and private rented dwellings). The report also reveals that the majority of properties fail on insulation and energy eYciency (97% of Housing Executive, 97% of Housing Association and 84% in the private rented sector). Whilst disrepair is generally low amongst social housing stock, faults were recorded in 71% of private rented dwellings. To address these issues we would welcome the introduction of the Decent Homes Standard (or similar) and a requirement for social and private rented accommodation to meet this standard by a certain date. 4.2 With the decline in social housing stock, and increased pressure on the waiting list, an increasing number of people are renting privately. Often private tenants are paying high rents for accommodation which is unfit, in disrepair or lacks modern facilities such as central heating. Enforcement of repairs is an ongoing issue. Private tenants are normally unaware of their rights and the available remedies in this area. We find that some are reluctant to take any action and are concerned about the possible consequences, such as eviction. With proposals for new private rented sector legislation, due to be released in April 2004, we believe it is an opportunity to ensure that tenants in Northern Ireland have the right to repair and statutory protection against eviction when pursuing repair remedies. 4.3 AVordability in the private rented sector is an issue for our clients. Many people who contact us for advice are experiencing problems with Housing Benefit levels and Discretionary Housing Payments (DHP). In a recent case, for example, the Housing Executive decided to stop a DHP shortly after they had agreed to provide Disabled Facilities Grant to adapt a privately rented property. The client may now have to move out of the accommodation. A review of the administration Housing Benefit locally is required. 4.4 Finally, analysis of the Waiting List shows that there is an increase in the number of older people in housing stress. This is normally due to the inaccessibility of their current accommodation. Older people and people with disabilities find it particularly diYcult to access suitable accommodation. We would welcome the adoption of Life Time Homes Standards across tenures to ensure that accommodation meets the changing needs of individuals and families throughout their lives. 22 March 2004

Memorandum submitted by Shelter Northern Ireland

Summary of Recommendations There must be a comprehensive approach to addressing housing need as follows: 3.1 (a) An increase in the public sector new build programme to around 2,500 per year. (b) An investigation of any planning diYculties regarding the delivery of public sector schemes. (c) An investigation into the question of the availability of suitable land for building public sector housing including the impact of land prices on finding suitable land. (d) An investigation into the performance of the Department for Social Development and housing associations with regard to the delivery of the public sector housing programme. (e) An assessment of the new build forecasting techniques of the Housing Executive. (f) An assessment of the availability of adequate funding from government for public sector new build programmes. 3.2 (a) There is a detailed assessment of the projected impact of the House Sales Scheme, over a 20 year period, with regard to the availability of re-lets in the public sector and the quality of the remaining stock with proposals to ensure that an adequate supply of public sector housing remains for allocation to those in need. Ev 150 Northern Ireland Affairs Committee: Evidence

(b) That in addition to a needs based programme of new build a House Sales Scheme replacement programme is considered or factored into the needs programme to ensure that an adequate supply of public sector housing remains in place to meet the requirements of those in need. 3.3 (a) A comprehensive and holistic approach to “quality of the housing stock” that aims to build sustainable communities and is locked into an overall sustainable development strategy. (b) In order to create a dwelling that is environmentally friendly and safe from the roof down to the foundations individual houses should meet a new comprehensive and legally enforceable design and standards “eco” code which would cover fitness, up-to-date modern amenity provision, eYcient and eVective heating systems, overall energy eYcient construction, good contextual design, safety and health factors. (c) Parker-Morris standards as the basis for quality assurance in both public and private sector housing. (d) In order to develop and maintain sustainable communities the Housing Executive and the Planning Service should take the lead alongside the community in a proactive planning approach designed to draw up agreed neighbourhood, village and town plans. (e) The Housing Executive, as the comprehensive housing authority become the responsible regulatory body to ensure compliance with the “eco” design and standards code. (f) That proposals are put in place to produce a strategy to ensure that good quality aVordable housing is available for owner occupation. (g) That the grants system designed to assist owner occupiers to repair and improve their homes is suYciently flexible and well resourced to enable low income families in owner occupation to maintain their homes to the proper standard.

1. Introduction 1.1 Statistics indicate that housing need is increasing at the same time as the supply of public sector housing, both in absolute terms and in terms of new build, is falling. The above inquiry is therefore timely and welcome and will provide an opportunity to ensure that the supply of new public sector housing is suYcient to meet the identified need. 1.2 Shelter Northern Ireland believes that good quality, aVordable, safe housing and security of tenure are essential for healthy human development and the maintenance of stable supportive family life and consequently for the building of sustainable communities. The key elements of policy are therefore supply, quality, aVordability, safety and security of tenure.

2. Background

2.1 Number of households increasing Census figures (table 1) show that the rate of household formation is increasing. The average rate of household formation between 1981 and 1991 was around 7,000 new households per year. However, between 1991 and 2001 the rate of new household formation increased to approximately 9,600 households per year.

2.2 Thousands of houses become unfit annually It should be noted (see page 11 of NIHE 2002–03 Annual Report) that 3,300 houses in Northern Ireland become unfit every year and some of these require to be replaced.

2.3 Number of homeless increasing Homeless figures supplied by the Housing Executive clearly illustrate that there are increasing levels of homelessness. Table 2 shows rising numbers of applicants presenting as homeless and rising numbers in turn being accepted by the Housing Executive as homeless.

2.4 Number in housing stress increasing Statistics provided by the Housing Executive show clearly that the number of applicants in urgent need/ housing stress have been rising consistently. Table 3 indicates that at March 2003 there were 13,237 applicants on the Housing Executive waiting list who were defined as being in housing stress. In 1989 the number of applicants in urgent need stood at 9,213.

2.5 Numbers on the overall Housing Executive waiting list on the increase The overall waiting list figures provided by the Housing Executive in Table 4 show that there were 26,700 applicants on the waiting list for public sector housing at March 2003, an increase of 700 applicants from the previous year which had been an increase of almost 4,000 over 2001. Northern Ireland Affairs Committee: Evidence Ev 151

2.6 Public sector housing supply falling Figures for new build completions (Table 5) illustrate the very sharp decline there has been since the end of the 1980’s in the supply of new public sector homes. On the other hand Table 5 also illustrates that over the last five years, from 1997–98, the rate of total new build has equaled or outstripped the average rate of new household formation because of the vigorous performance of the private sector. However, this does not appear to impact on the demand for public sector housing—suggesting therefore that this demand/need is a separate market cut oV from owner occupation or the private rented sector by aVordability and/or lack of security factors. 2.7 The absolute supply of public sector housing is falling Figures provided by the Housing Executive (Table 6) show very clearly that the House Sales Scheme, by which secure Housing Executive tenants can purchase their Executive home, is very successful. However, the consequence of this is that the Executive has sold over 100,000 of its stock since 1979 and that the rate of sales (Table 7) is now radically outstripping the rate of replacement new build. Since 1990–91 the public sector has completed 20,353 homes whilst 58,408 have been sold to Housing Executive sitting tenants and this scheme in essence has now been extended to housing association tenants. Shelter Northern Ireland believes that these rates of sales and replacement are unsustainable if we wish to house those in housing need, including those who are homeless, and ensure that everyone has access to good quality aVordable housing which has security of tenure.

2.7 The available number of public sector re-lets and allocations is falling Given the rising rate of Housing Executive house sales and the falling rate of public sector new build it is not surprising that the number of public sector allocation is falling. Table 8 illustrates a trend towards falling numbers of allocations by the Housing Executive. Clearly as the absolute number of Housing Executive dwellings falls there will be less available in future for re-letting to applicants on the waiting list. 3. Recommendations

3.1 The rising demand for social housing The rising demand for public sector housing reflects the increasing rate of household formation, the inadequate building programme in the public sector, the impossibility of suitable aVordable secure accommodation in the private rented sector which has no right to buy and access to owner occupation. Shelter Northern Ireland therefore argues that rising demand for public sector (social) housing is directly related to an inadequate supply and recommends on housing need grounds: (a) An increase in the public sector new build programme to around 2,500 per year It has been suggested that the new build completions figures are artificially low because of planning diYculties and the availability of suitable land. It has also been suggested that following the loss by the Housing Executive of their new build function housing associations which are now responsible for the new build programme are not delivering and that the Department for Social Development to whom they are directly accountable is not in a position to ensure that housing associations deliver on time. Shelter Northern Ireland therefore further recommends: (b) An investigation of any planning diYculties regarding the delivery of public sector schemes. (c) An investigation into the question of the availability of suitable land for building public sector housing including the impact of land prices on finding suitable land. (d) An investigation into the performance of the Department for Social Development and housing associations with regard to the delivery of the public sector housing programme. (e) An assessment of the new build forecasting techniques of the Housing Executive. (f) An assessment of the availability of adequate funding from government for public sector new build programmes.

3.2 The continuing decline in the supply of social housing Shelter Northern Ireland believes that the continuing decline in the supply of public sector (social) housing arises from the impact of the House Sales Scheme (right-to-buy) of the Housing Executive and the small replacement programme which last year (2202–03) stood at 1,063 dwellings and the increasing disparity between the rate of public sector house sales and the rate of replacement new build in the public sector. Shelter Northern Ireland notes that from April 2000 and March 2003 sitting tenants of the Housing Executive purchased 16,485 dwellings from the Executive. Over the same period only 3,634 public sector homes for rent were completed. Shelter Northern Ireland believes that these rates of sales and rebuild are unsustainable if the aim is to provide access to everyone to good quality, aVordable housing with security Ev 152 Northern Ireland Affairs Committee: Evidence

of tenure for those in need. For example, a 10 year projection based on the above rates would see another 12,000 public sector homes constructed as against a sales total of around 50,000 dwellings making a further net reduction of 38,000 homes in the public sector stock. Shelter Northern Ireland believes that as a matter of urgency there must be long term thinking on this matter and therefore recommends that: (a) There is a detailed assessment of the projected impact of the House Sales Scheme, over a 20 year period, with regard to the availability of re-lets in the public sector and the quality of the remaining stock with proposals to ensure that an adequate supply of public sector housing remains for allocation to those in need. One of the eVects of the House Sales Scheme is to provide access to owner occupation to families who otherwise would not be able to aVord access. In fact, along with the Coownership Housing Association, the Housing Executive Home Sales Scheme has led to a major expansion of owner occupation. Shelter Northern Ireland recommends: (b) That in addition to a needs based programme of new build a House Sales Scheme replacement programme is considered or factored in to the needs programme to ensure that an adequate supply of public sector housing remains in place to meet the requirements of those in need.

3.3 The Quality of Housing Stock Quality is a fundamental issue in housing and we welcome the focus on it. Shelter Northern Ireland believes that self preservation and a determination to improve the quality of life requires that we take proactive and radical steps to protect, renew and enhance the ecosystems and communities that sustain and enrich our lives and to reject policies and developments that degrade neighbourhoods, the biosphere and mortgage the quality of life of future generations. It is unclear, however, how the Northern Ireland AVairs Committee interprets “the quality of housing stock” issue but for Shelter Northern Ireland quality has to be about the “quality of life” and must therefore be holistic in concept which if to be taken forward successfully as a practical proposition will be focused on building and maintaining sustainable communities and in creating self generating social capital. Delivering and maintaining sustainable communities will require a process that is integrated and multi- disciplinary—involving a joined up working together of the community, the Housing Executive as the strategic housing body, the Planning Service, the housing association and or developer, architects, landscape desiguers, Roads Service and others in the health and education fields. Shelter Northern Ireland recommends: (a) A comprehensive and holistic approach to “the quality of the housing stock” that aims to build sustainable communities and is locked into an overall sustainable development strategy. Specifically we recommend that: (b) In order to create a dwelling that is environmentally friendly and safe from the roof down to the foundations individual houses should meet a new comprehensive and legally enforceable design and standards “eco” code which would cover fitness, up-to-date modem amenity provision, eYcient and eVective heating systems, overall energy eYcient construction, good contextual design, safety and health factors. (c) Parker-Morris standards as the basis for quality assurance in both public and private sector housing. (d) In order to develop and maintain sustainable communities the Housing Executive and the Planning Service should take the lead alongside the community in a proactive community planning approach designed to draw up agreed neighbourhood, village and town plans. In focusing on quality and good design Shelter Northern Ireland is concerned with the impact of changes that threaten to undermine it. The loss by the Housing Executive of their new build functions has removed a major player with a clear policy objective of improving quality and design in housing from the house-building scene. Shelter Northern Ireland fears that the transfer of the new build function to housing associations mixed- funded financial arrangements will result in a loss of co-ordination and proper supervision of quality and good design in the future. In light of the likely tendency of mixed funding to place extra financial stress on individual housing associations, it will therefore also increase pressure to reduce quality and lower standards in order to cut costs. Shelter Northern Ireland is also concerned that encouraging low income families to purchase their own home will lead to the building of very basic new homes characterized by poor design and low standards which could also attract higher repair and improvement costs in future. Northern Ireland Affairs Committee: Evidence Ev 153

Shelter Northern Ireland further recommends: (e) The Housing Executive, as the comprehensive housing authority, become the responsible regulatory body to ensure compliance with the “eco” design and standards code. (f) That proposals are put in place to produce a strategy to ensure that good quality aVordable housing is available for owner occupation. (g) That the grants system designed to assist owner occupiers to repair and improve their homes is suYciently flexible and well resourced to enable low income families in owner occupation to maintain their homes to the proper standard. 14 April 2004

Table 1

HOUSEHOLD FORMATION BETWEEN 1926 AND 2001

Based on Based on population present population present and population resident Average increase in Average increase in Between Census population per year Households per year

1926–37 2,107 2,633 1937–51 1,512 2,496 1951–61 5,412 3,521 1961–66 11,946 5,271 1966–71 10,258 5,657 1971–81 344 (decrease) 2,891 (’81 figure revised) 3,488 (81’ figure revised) 1981–91 4,066 7,401 (’81 figure revised) 6,805 (’81 figure revised) 1991–2001 11,198 9,634

Source—Census reports

Table 2

HOMELESS STATISTICS 1989–2003

No Presenting Awarded Homeless Total Not A1 but not A1 Homeless Homeless

1989–90 6,675 3,110 2,056 5,166 1,239 1990–91 9,189 4,408 2,811 7,219 1,352 1991–92 10,084 4,159 3,335 7,494 1,792 1992–93 10,099 4,061 3,488 7,549 1,758 1993–94 9,731 3,971 3,245 7,216 1,707 1994–95 10,068 4,014 3,320 7,334 1,828 1995–96 10,468 4,319 3,337 7,656 1,680 1996–97 11,092 4,404 3,276 7,680 1,959 1997–98 11,672 4,959 3,218 8,177 2,226 1998–99 11,552 4,997 2,937 7,934 2,190 1999–2000 10,997 5,192 2,988 8,180 2,131 2000–01 12,694 6,457 3,449 9,906 2,825 2001–02 14,164 7,374 3,643 11,014 3,376 2002–03 16,426 8,580

Source—Northern Ireland Housing Executive Ev 154 Northern Ireland Affairs Committee: Evidence

Table 3

URGENT NEED/HOUSING STRESS URGENT NEED/HOUSING STRESS ON THE HOUSING EXECUTIVE WAITING LIST

Year A Group B Group Total

March 1990 3,395 5,818 9,213 March 1991 3,918 5,988 9,906 March 1992 3,730 6,192 9,922 March 1993 4,350 6,140 10,490 March1994 5,011 5,568 10,579 March1995 5,993 5,203 11,196 March1996 6,206 4,942 11,148 March1997 7,185 4,710 11,895 March1998 7,205 4,305 11,510 March 1999 7,600 4,078 11,678 March 2000 7,312 4,422 11,734 March 2001 10,366 March 2002 12,486 March 2003 13,237 Source—Northern Ireland Housing Executive

Table 4

NIHE OVERALL/TOTAL WAITING LIST

Year Number 1972 N/A 1973 N/A 1974 N/A 1975 N/A 1976 46,394 1977 24,454 1978 25,586 1979 27,848 1980 32,115 1981 29,880 1982 27,109 1983 23,736 1984 23,482 1985 24,529 1986 24,972 1987 24,260 1988 24,390 1989 22,713 1990 21,681 1991 22,238 1992 23,073 1993 23,568 1994 22,962 1995 23,355 1996 23,349 1997 23,759 1998 22,691 1999 23,193 2000 23,084 2001 22,054 2002 25,983 2003 26,700 Source—Northern Ireland Housing Executive Northern Ireland Affairs Committee: Evidence Ev 155

Table 5

NEW BUILD COMPLETIONS

Year NIHE HA Other Total Private Private Overall Public Public (Subsidy) (Non Total Agencies Subsidy)

1971 9,102 36 77 9,215 4,220 481 13,916 1972 7,203 115 34 7,352 4,003 295 11,650 1973 5,966 129 10 6,105 4,017 435 10,557 1974 5,412 48 301 5,761 3,880 432 10,073 1975 4,885 55 203 5,143 3,225 551 8,919 1976 6,518 — 16 6,534 2,447 601 9,582 1977 7,676 — 1 7,677 2,066 1,017 10,762 1978 5,681 8 9 5,698 2,218 927 8,843 1979 3,436 220 71 3,727 2,007 1,567 7,301 1980 2,507 343 56 2,906 1,763 1,805 6,474 1981 2,859 118 223 3,200 1,050 2,507 6,757 1982 2,814 369 218 3,401 — 3,606 7,007 1983 4,044 641 49 4,734 — 4,971 9,705 1984 3,588 695 6 4,289 — 6,177 10,466 1985 3,233 611 2 3,846 — 6,940 10,786 1986 2,580 537 — 3,117 — 7,082 10,199 1987 1,764 546 — 2,310 — 7,451 9,761 1988 1,712 715 3 2,430 — 7,511 9,941 1989 1,708 685 — 2,393 — 7,911 10,304 1990 1,299 442 15 1,756 — 6,163 7,919 1991 953 791 2 1,746 — 5,164 6,910 1992–93 949 810 43 1,802 — 5,759 7,561 1993–94 888 528 18 1,434 — 5,728 7,162 1994–95 878 503 — 1,381 — 5,350 6,731 1995–96 1,362 1,041 — 2,403 — 6,782 9,185 1996–97 823 784 — 1,607 — 7,273 8,880 1997–98 1,080 730 — 1,810 — 8,371 10,181 1998–99 538 960 — 1,498 — 8,140 9,638 1999–2000 190 1,092 — 1,282 — 9,117 10,399 2000–01 44 1,112 — 1,156 — 10,512 11,668 2001–02 29 1,386 — 1,415 — 12,017 13,432 2002–03 2 1,061 — 1,063 — 13,178 14,241

Source—Northern Ireland Annual Abstract of Statistics

Table 6

HOUSE SALES

Year House Sales

1978–79 0 1979–80 517 1980–81 (26,932 applied to purchase) 1,994 1981–82 7,042 1982–83 5,554 1983–84 5,440 1984–85 5,393 1985–86 4,103 1986–87 3,184 1987–88 2,807 1988–89 3,368 1989–90 4,638 1990–91 4,092 1991–92 3,191 Ev 156 Northern Ireland Affairs Committee: Evidence

Year House Sales 1992–93 3,228 1993–94 3,972 1994–95 4,693 1995–96 4,715 1996–97 4,487 1997–98 4,755 1998–99 4,308 1999–2000 4,482 2000–01 5,509 2001–02 4,985 2002–03 5,991 TOTAL (NIHE Annual Reports) 102,448

Source—Northern Ireland Housing Executive

Table 7

COMPARING PUBLIC SECTOR NEW BUILD TO HOUSE SALES

Year Public Sector New Build Housing Executive Sales

1990–91 1,756 4,092 1991–92 1,746 3,191 1992–93 1,802 3,228 1993–94 1,434 3,972 1994–95 1,381 4,693 1995–96 2,403 4,715 1996–97 1,607 4,487 1997–98 1,810 4,755 1998–99 1,498 4,308 1999–2000 1,282 4,482 2000–01 1,156 5,509 2001–02 1,415 4,985 2002–03 1,063 5,991 TOTAL 20,353 58,408

Table 8

HOUSING EXECUTIVE ALLOCATIONS (! HOUSING ASSOCIATIONS FOR 2001–02 AND 2002–03)

Year Number

1973–74 — 1974–75 — 1975–76 14,169 1976–77 16,923 1977–78 18,154 1978–79 17,011 1979–80 12,043 1980–81 9,966 1981–82 10,621 1982–83 12,504 1983–84 13,152 1984–85 12,452 1985–86 12,417 1986–87 11,987 (or 11,887) 1987–88 10,940 1988–89 11,357 1989–90 11,042 Northern Ireland Affairs Committee: Evidence Ev 157

Year Number 1990–91 11,632 1991–92 11,170 1992–93 10,248 1993–94 10,489 1994–95 10,455 1995–96 11,298 1996–97 10,164 1997–98 10,946 1998–99 10,643 1999–2000 8,588 2000–01 7,288 2001–02 8,824 (! 468 for HA’s) 2002–03 8,766 (! 557 for HA’s)

Source—Northern Ireland Housing Executive

Memorandum submitted by the Foyer Federation—Northern Ireland Network

1. Introduction This submission is provided on behalf of the Foyer Federation network in Northern Ireland. There are currently four established foyers and seven under conversion from independent living centres to foyer status. Details of the NI Foyers are outlined at Appendix 1. Like the rest of the United Kingdom, Foyers operate in Northern Ireland to do the following: “All young people need a home, support and a springboard into independent living, learning and work. Some don’t get it. Foyers fill the gap.”2 Foyers are for vulnerable and often homeless young people, between the ages of 16 and 25, and provide a holistic approach to breaking the no home: no job: no hope cycle experienced by many homeless and marginalised young people. In Northern Ireland such a solution is particularly needed, with unemployment higher than most other regions of the United Kingdom, 24% of the population aged under 16, and the high level of homelessness. Last year, over 16,000 households, many of them young singles, presented to the NI Housing Executive as homeless.

2. Response to Inquiry The Foyer network in Northern Ireland are pleased to respond to this Inquiry looking specifically at the following points: — the rising demand for social housing; — the continuing decline in the supply of social housing; and — the quality of housing stock.

3. Rising Demand for Social Housing The demand for social housing in Northern Ireland has continued to increase over the last 5 years as demonstrated by the Table below. In contrast the actual number of allocations has declined, and does not even met a third of the recognised need.

Year Total applicants Total allocations 1998–1999 23,193 10,643 1999–2000 23,084 8,496 2000–2001 22,054 9,671 2001–2002 25,983 8,824 2002–2003 26,700 8,766

2 The Mission Statement of the Foyer Federation, the membership organisation providing advice and support to operational and developing Foyers. Ev 158 Northern Ireland Affairs Committee: Evidence

As a result of our work with young people who are homeless and in housing need, we are concerned that the overall numbers seeking social housing in Northern Ireland, and the volume in “housing stress”, mitigate against young people accessing social housing. This situation for young people is exacerbated by a number of factors:

3.1 The high level of young people in Northern Ireland Statistics about young people in Northern Ireland show quite a stark contrast to those in Great Britain. For example, here 23.6% of the population are aged under 16 and 26.8% are aged 18 and under. This compares to 18.7% under 16 in England and Wales and 19.8% aged 18 and under. Not only is the age profile in Northern Ireland younger, but this is interconnected to issues such as the proportion of people of working age who have no qualifications. 14.5% of people of working age in the United Kingdom have no qualifications. The statistics for the UK countries are England 14.1%, Scotland 14.4%, Wales 17.2 % and Northern Ireland 23.4%. Northern Ireland is therefore considerably higher than the UK as a whole and each of the individual jurisdictions.3 This ultimately aVects young people’s ability to get into employment and thus aVord the private rented or owner- occupier sectors. Thus many young people without qualifications seek to access the social rented sector.

3.2 Homelessness in Northern Ireland Over 16,000 households applied as homeless to the Northern Ireland Housing Executive during 2002–03, an increase of more than 13% from the previous year’s figure of 14,164, and an actual increase of 42% over the last 5 years. Nearly one fifth (20.5%) of all homeless applicants were single people aged 16–25 years old. We suggest that particular attention should be given to the situation regarding single young people, who are disadvantaged by the points allocation scheme. It has become normal practice for young people to either remain on the list for a considerable period of time (normally with less than 30 points) or be oVered accommodation in areas of low demand where, without appropriate support and facilities, they can find themselves becoming homeless.

4. Continuing Decline in Supply of Social Housing Despite increasing and currently high levels of demand the social rented sector continues to decline through a number of factors—low levels of new build, house sales and demolitions—as demonstrated by the following Table.

Year Total Sales Demolitions New starts in social rented sector 1998–1999 4,485 938 2,051 1999–2000 4,637 656 1,583 2000–2001 5,624 987 908 2001–2002 5,061 1,354 797 2002–2003 6,156 661 669 The new starts of social housing clearly do not compensate for the annual decline in Housing Executive stock via house sales and demolitions. It would appear that the Net Stock Model, used for assessing housing need, has been under-estimating the level of new stock required. A new model has been developed, suggesting a need for around 1,750 new social rented dwellings per year—we would suggest that this is still an under-estimation in the light of the current level of need and back log of applicants.

5. Difficulties in Accessing Social Housing The combination of the rising demand for social housing and the declining stock means that many young people have diYculties accessing social housing. For young people seeking assistance from Foyers, diYculties in accessing social housing may be all or part of the reason for their homelessness. Combined with other issues—relationship and other diYculties at home, lack of family support, mental health problems etc—finding suitable and accessible accommodation when they come to move on, becomes an added diYculty. For young people entering the Foyer system, homelessness may be the result of housing problems or they may be entering the Foyer as a way of preventing homelessness. Whatever the reason, the key issue remains that young people experience housing diYculties for a number of reasons:

3 The Level of Highest Qualification held by young people and adults: England 2002, SFR 03/2003, Department for Education and Skills. Northern Ireland Affairs Committee: Evidence Ev 159

— Actual provision that they can aVord to enter—the owner occupied sector is not an option, and the limited private rented stock in Northern Ireland (3–4% compared to 10% in some parts of England) is often not in the areas young people (who are not studying) want to be, or aVordable in terms of the rental levels and the requirement of a deposit and month’s rent in advance; — Access to social rented housing is limited by the amount of accommodation available (and the fact that the stock is diminishing), the increasing demand for such stock (evidenced by the waiting list and homelessness numbers) and the diYculties for young people in obtaining suYcient points in the Common Selection Scheme to be oVered a place. Even once this occurs the oVer of accommodation may not be in an area suitable for their successful resettlement. — The current 16 hour Housing Benefit rule restricts young people in housing need from studying full time. The Foyer Federation is currently calling for an urgent review of this rule.

6. Quality of Housing Stock The 2001 NI House Condition Survey showed a marked decline in unfitness amongst the housing stock in Northern Ireland—in 2001 the rate was 4.1% of dwellings, a decrease from 7.3% in 1996. In addition, there was a clear link between unfitness and tenure, with nearly half of all unfit properties being vacant. The survey also found minimal unfitness levels in the social rented sector. Many young people moving on from Foyers move into the private rented sector. With nearly 9% of the private rented sector found to be unfit, many young people are potentially moving into unfit housing. This has a clear link between their housing and physical health and mental well-being. The 2001 House Condition Survey also indicated that one third of all dwellings in Northern Ireland fail the Decent Homes Standard (including almost 50% of Housing Executive properties and private rented dwellings). This was mainly in relation to thermal comfort—both eVective insulation and eYcient heating. We suggest that a Decent Homes Standard should be introduced in Northern Ireland, and made obligatory for all accommodation by a certain date.

7. Conclusion To reiterate there is an insuYcient supply of aVordable and accessible accommodation for young people in Northern Ireland, and more needs to be done to look at models of provision—such as Foyers—which help to address the leap from youth to adulthood. Overall however there needs to be suYcient social housing so that young people can move on into their own accommodation and contribute to life in their community.

APPENDIX 1

Name of Foyer Location Number of bedspaces Date of opening Belfast South Belfast 42 1997 Flax North Belfast 38 1999 Lurgan Lurgan 38 2000 Strand Derry 60 1999 PHAB Derry 20 Ballymena 12 Bangor 6 Currently Enniskillen 8 converting from Newry 17 independent Belfast—Salisbury Avenue 7 living centres Belfast—Sandhurst Road 7 Total bedspaces 255

19 March 2004

Memorandum submitted by the Simon Community Northern Ireland 1. Introduction Simon Community welcomes the opportunity to be able to contribute to Northern Ireland AVairs Committee Social Housing Enquiry. The Simon Community is a provider of emergency accommodation, foyer accommodation, leaving care facilities and community services throughout Northern Ireland. We accommodate approximately 1,000 people a year and provide services for up to 200 people within the community. The Simon Community is in a unique position as a major provider of temporary accommodation for homeless people in Northern Ireland to comment on the issues associated with social housing provision. Ev 160 Northern Ireland Affairs Committee: Evidence

2. The Rising Demand for Social Housing

2.1 Economic Factors Many underlying issues contribute to the rising demand for social housing within Northern Ireland. Barker (2003) outlines in the Review of Housing Supply that housing and access to housing is inextricably linked to economic welfare. While economic conditions in Northern Ireland are buoyant and beneficial for some a sizeable portion of the population have particular diYculties with exclusion issues including high unemployment. — N.I. has an unemployment rate of 6.3% as compared to the mean in the rest of the UK of 4.9% (January 2004). — N.I. has one of the highest rates of economic inactivity in the UK with 28.4% of those of working age being inactive as compared to a mean of 21.5% in the rest of the UK. The incidence of poverty in Northern Ireland excludes individuals from availing of the owner occupier markets due to financial inaccessibility. Bare Necessities (2004), a report on social exclusion in NI, reports that: — 13.6% of all households had no adult in the household in paid work. — 21% of all households are composed of retired people. — 14% of households had no workers due to sickness or disability. Exclusion from the labour market means exclusion from owner occupation, particularly when average house prices in NI are estimated to be around £94,028. 2.2 Owner Occupation Simon Community’s experience in accommodating on average 1,000 people per year illustrates how dependent homeless individuals are on the safety net of social housing provision. Approximately 53% of our population are under 25 and therefore have not yet established the financial stability to avail of owner occupation. Many have complex needs and have not got the skills or qualifications to participate in this sector of housing. Not only must these individuals be given access to housing which meets their financial status, but also be supported once they move into independent accommodation. For the future there is a concern that the population’s ability to avail of market driven approaches to housing provision will be curtailed due to the possible constriction of the public services following the review of public administration and the continued decline of Northern Ireland’s manufacturing base. 2.3 Need The increased demand for social housing may be demonstrated by figures released in 2003: — 40,453 households on social rented sector waiting list (DSD). — 448 people deleted from the Waiting list in 2002–03 (DSD). — 16,426 households presenting as homeless (DSD). — 31,600 dwellings deemed unfit, which is 4.9% of the housing stock (Housing Condition Survey 2001). The changing demographic patterns of the Northern Ireland population has had an influence on need. Single person households grew from 23% (120,000) in 1991 to 27% (171,500) of total households in 2001. Increased fragmentation of existing households through relationship and family break up, as reflected in the homelessness figures, also present particular challenges for the provision of appropriate accommodation.

2.4 Private Rented Sector The private rented sector comprises of 6.4% of the overall housing stock. However, the failure of Housing Benefit to meet the full costs of rents, and the lack of a consistent discretionary grant system particularly for single individuals does exclude some of availing of this market. Simon Community is increasingly finding that men separated from their children are particularly disadvantaged in this respect as they are unable to aVord accommodation that facilitates shared custody or access to their children.

3. The Continuing Decline in the Supply of Social Housing

3.1 House Sales scheme The drain of the public housing stock through the House Sales Scheme has meant that 25,963 dwellings have been sold by NIHE since 1998. This compares to 7,894 new dwellings that have been completed by Housing Associations and the NIHE during that time. NIHE estimated that 5,000 dwellings will be sold each year for the foreseeable future. Simon Community are particularly concerned that the proposed House Sales Scheme for Housing Association tenants will add to the decline of availability of public sector housing to vulnerable and excluded households. Northern Ireland Affairs Committee: Evidence Ev 161

3.2 Geography The level of empty properties is misleading due to the fact that many of these properties are undesirable and unsuitable for many households. Many Simon Community residents’ report being oVered accommodation in areas, which will expose them to influences and factors, which may have led them into homelessness in the first place. There is a need for a more strategic approach to this issue. It is the view of the Simon Community that an overall Housing Strategy may facilitate this process.

3.3 New Build Programme It is a concern that Housing Associations have not yet been able to deliver on the targets set for the completion of new dwellings for a myriad of reasons that are outside their control including securing land, competition with private developers and delays in the planing process. The Simon Community is also concerned that the current system to coordinate the type of accommodation being built is not fully taking into account the changing demographic patterns of smaller households, the needs of single people and the needs of reconstituted families. An overall Regional Housing Strategy may assist with this process.

3.4 Net stock Model The Simon Community are concerned that the recent review of the Net Stock Model has only decided that it is appropriate to build 1,750 social housing dwellings per year considering the anticipated continued drain of NIHE stock, and the proposed House Sales Scheme for Housing Association tenants contained in the Housing (2003) Order.

3.5 Private sector It is clear that the housing associations are finding it very diYcult to compete with private developers for land. Market forces, unless particular state intervention is applied will determine that this trend will continue. The question must be asked if the private sector could have a greater role in contributing to policies that could achieve a greater tenancy mix. Section 106 of the Town and Country Planning Act 1990 is being used in GB with varying amounts of success to assist in the building of social rented stock for key worker groups.

4. The Quality of Housing Stock The NIHE have recently expanded the use of the private rented market to provide temporary accommodation for those who are assessed as Full Duty Applicants under the housing legislation. 8.7% of the private rented stock is regarded as unfit. This is significantly higher than the rest of the housing stock. Care must be given to the selection and inspection of the properties used for temporary accommodation. It is the experience of the Simon Community that housing quality can have a deleterious eVect on mental and physical health. This is particularly the case for those mothers and fathers that we work with who have been separated from their children due to child protection issues or family break up. The quality of housing for those homeless people who are being resettled in the community and are trying to facilitate access or shared care arrangements is particularly important. March 2004

Witnesses: Ms Janet Hunter, Director, Housing Rights Service, Mr Laurence MoVat, Campaign OYcer, Shelter Northern Ireland, Ms Fiona Boyle, Network Development Manager, Foyer Federation, and Ms Carol O’Bryan, Chief Executive, Simon Community, examined.

Q349 Chairman: Welcome to you all. As a analysing or reviewing, whereas the organisations Committee, we decided to take the Committee out of that you work for and the people you serve are the the Castle Buildings in Stormont and move around very people that we hope will benefit most from our Northern Ireland with the intention of making it report, and that is those who have a housing need. easier for people to give evidence and now we find we We very much welcome the time you have given to have dragged you all up from Belfast. us to give evidence. We will try and make it as Ms Hunter: It is okay, we like the day out. painless as possible. Please do not feel that you have to answer every single question one by one. If the Q350 Chairman: You are very, very welcome. Let me answer has been given by one of your colleagues then hopefully put you at ease by saying we very much feel free to say that the answer has been given. What value the evidence you are going to give to us we hope to do is to build a fair picture of the needs because up to this point we have taken evidence from of those that you serve. I wonder if I can start with the providers and from those who have an interest in a general question and that is the Northern Ireland housing from the point of view of providing and Housing Executive recently announced that there Ev 162 Northern Ireland Affairs Committee: Evidence

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan was a levelling oV of the number of homeless people. Strategy, in terms of that particular strategy at an I do not think we understand yet, as a Committee, operational level the targets are reasonable enough why that has happened. There has been discussion as but it fails on two counts. It fails in terms of it needs to whether or not there are issues related to levels of other agencies to work with it in regards to health, intimidation dropping or whether there are other probation, social services, etc, and in the first year or factors. Would you comment on whether or not the two of rolling that out we have not seen the degree figure is to be believed and what may be the factors of commitment from those other agencies that we behind that levelling oV of the homeless figure? I am would have expected. The other issue would be that happy for anybody to start. the Housing Executive, through their strategy, what Ms O’Bryan: I will take that, Chairman. I am Carol is within their power, is not really hitting on what we O’Bryan, Simon Community of Northern Ireland. would see as the main structural reasons for In the figures for the past year, 2003–04, the increase homelessness, the housing market and the was 4.4% on the previous year’s figures, so the continuing high levels of long-term unemployment, figures in terms of households presenting to the that is not within their gift. Housing Executive as homeless would have been just over 17,000. That was a lower increase than we had Q352 Chairman: They did just recently announce seen over the past five or six years. Prior to that it this £1.4 million package of funding for projects run would have been a 12, 15, 16% year-on-year by the voluntary sector. How much of an impact will increase, so 4.4% looks good in comparison to the that have? 16% increase of the previous year. Looking at the Ms O’Bryan: Certainly it will have some impact. reasons for presenting for homelessness, there would V First of all, we are not clear how that money is being be about 12 di erent categories in all and, in looking used, we are only aware of the funding that at the percentage increase, there is no one reason for organisations that we are in contact with might get. homelessness that is standing out as to why we have Of the £1.4 million, we were able to identify just seen a lower percentage increase in the past year. under half of that. That is the first thing I would like Where we see the biggest impact is on intimidation to say. The other half we cannot comment on. In which is down by just over 2% on the previous year’s relation to that money, about 60% of that was figures. On any other analysis, you are looking at money that was already going into the system, so the either minor increases or decreases overall, so I do £1.4 million as far as we can see is not all new money. not think those figures can tell us an awful lot. I think The kinds of services that they are supporting I and my colleagues would be reluctant to jump in through that is having an impact on people, either to and make too many generalisations following one avert a homelessness crisis through debt counselling year. The other thing we would like to say is in and through advice and support or will help them in looking at the reasons for homelessness, most of terms of managing that homelessness crisis, and them are to do with issues other than housing, they thirdly will help them move out of homelessness. are to do with relationship breakdown, leaving The numbers that will impact on at this moment in institutions, domestic violence and those kinds of time in terms of the 17,000 is relatively small. things. That continues to be a feature within our Chairman: My next question I am going to hold over society. In general terms we would be saying in terms in abeyance until the end. I wanted to ask what more of factors that it is too early to say. I would like to V we can do both in terms of government and as see it continue to go down or to plateau o but it governmental agencies to help prevent homelessness needs more analysis. and to assist, but what I would rather do is bring my colleagues in to ask questions on some of the points Q351 Chairman: Could we have an answer as to you have raised and perhaps we can look at what we whether or not there is a feeling that the DSD and should be doing as our final question. the Housing Executive are setting the right targets in relation to how they wish to meet the needs of the Q353 Mr Swire: You will recall back in June 2002, homeless? Can you give us a performance rating, if the Northern Ireland Assembly’s Social you like, in terms of the DSD and Housing Development Committee recommended that the Executive’s programme for targeting homelessness? Minister for Social Development urgently review the Ms O’Bryan: If you look at the structural reasons for policy and practice of providing new build social homelessness, one of the main structural reasons is housing in order to ensure that suYcient social in terms of the housing market and in particular the housing stock is both accessible and aVordable social housing market, and within that we would throughout Northern Ireland. Two years later, how argue that the targets are not set correctly and have would you evaluate the response to that been arguing for quite some time now that the recommendation? formula used to calculate the new housing stock is Ms Boyle: I am Fiona Boyle from the Foyer too low and we know that there is some work Federation. One of our reflections has been around happening in relation to that. That is an area of the Net Stock Model which Carol has already concern for us. We also have concerns over policies identified has been reviewed up to a figure of 1,750, in relation to house sales. We would argue that the but with the need that is coming through we are still house sales policy is adding to the length of the concerned that is not suYcient and with the backlog waiting list and the number of people declaring as in new build the waiting list has continued to grow. homeless. They would be causes for concern. In When I mention the backlog, what I am referring to relation to the Housing Executive’s Homelessness there is the actual number of new starts and since Northern Ireland Affairs Committee: Evidence Ev 163

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan

1998 those have reduced year-on-year. In the last the things that would be very strong in Northern year that we have figures for, 2002–03, there were Ireland is the provision of temporary only 600, 700 new starts with just over 1,000 accommodation support through that route and completions. We have a number of concerns around that has helped to decrease rough sleeping within that with the move to DSD and housing associations Northern Ireland. Our figures are lower than the having full control of new build and they themselves mainland. The other route would be through the have been aware of the diYculties: the availability of permanent accommodation which Fiona has talked suitable land, issues around planning and getting about. As the housing associations are now the only builds started. I suppose we would have further developers of housing within Northern Ireland in issues and concerns around moving from one terms of any new build then the fortunes of families strategic developer to intrinsically 39 associations, and individuals who are homeless is through that all of which have to be managed and co-ordinated route. In terms of the nature of the houses that are and pulled together, so there may be some issues developed, we would be saying because of the there about actual development capacity of some of smaller household size there needs to be a push for those associations, some of them are quite small. As smaller housing units and that is an issue that is not well as that, private build has continued to increase completely being heard at the moment, but I think at a rate which is high enough to meet demand but that is a DSD issue and not directly a housing access for many of our clients to owner-occupation association issue. or to private rented is not possible because of the deposit of a month’s rent in advance. We do have Q357 Mr Swire: In what ways could the new build that concern about the decline in the social rented programme be better designed to suit the needs of pool. I mentioned the backlog and at the moment we young single people, reconstituted families, and are estimating that is about a 2,500 to 3,000 new households with special needs for whom normal builds backlog. Can I clarify whether that has supply may not be appropriate? answered your question? Ms Boyle: You mentioned there reconstituted families and in terms of maybe an older man wanting Q354 Mr Swire: I want to come back to you on one to have a house so that he can then have access for thing. Obviously you have concerns particularly his children, we have evidence of individuals waiting about the backlog and so forth, but is there any real for two, possibly three years in temporary evidence to indicate that the level of new build accommodation or private rented or a mix of that proposed by DSD and NIHE underestimates real and that has an impact on the family. For young need? people, many young people living in Foyer’s are Ms Boyle: I think that is something that they will waiting between two and three years, possibly more, need to look at in more detail to assess actual through the common selection scheme in order to demand and latent demand. We do have a waiting get enough points to get a house and, again, that has list where the number of households on that would an impact on their lives and trying to have some indicate that there is demand. permanency about what they are doing. Ms O’Bryan: There is the housing issue but there is Q355 Mr Swire: Can you say what that is? also the support issue. You talk specifically about Ms Boyle: About 25,000 households at this stage, the vulnerable groups and maybe the younger together with 17,000 who are homeless. Clearly the people, and here the initiative to develop floating 25,000 are households and so could be a family of support schemes within Northern Ireland through five, so there are pluses and minuses in terms of the funding available through the Supporting People actual numbers. Fund has been helpful. Currently there are 18 Ms O’Bryan: Could I supplement that. The length of schemes that are being piloted within Northern time people are within the homelessness situation is Ireland and some of them would have a very specific increasing. Our own figures for our organisation focus working with women who may be in a show our average length of stay over the past three situation of domestic violence or working with years has gone up from four months to seven young people who are homeless, young people living months, so that also informs that issue as well. care. Those schemes have been up and running for about a year and are currently subject to quite Q356 Mr Swire: Thank you for that. What rigorous review to see what impact they are having. contribution has the housing association movement We need to look at the housing issue along with the made in terms of relieving homelessness in support issue, especially for those quite vulnerable Northern Ireland? groups. Ms O’Bryan: I am happy to pick up on that. Their contribution would be primarily through two ways. Q358 Mr Swire: Fiona Boyle referred to something One would be through Joint Management which certainly every Member of Parliament will Agreements with voluntary partners providing know about, the points system. To what extent have temporary accommodation for people who are single young homeless people been disadvantaged homeless. That is either emergency accommodation by the points based housing selection scheme? or move-on accommodation for single people or for Ms Hunter: I am Janet Hunter from Housing Rights families where they enter a partnership with Service. We welcome the focus on the common organisations like the Simon Community that selection scheme because it is the primary means by provide that service. That is invaluable and one of which people can access social housing. It is not just Ev 164 Northern Ireland Affairs Committee: Evidence

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan the availability of housing that is important, it is the Q360 Chairman: You have heard nothing? fact that people can access it. As you know, our Ms Hunter: We were of the view that it was selection scheme is quite unique in that it covers both scheduled for the spring of this year, so I suppose access to housing association and to Housing that gives us another seven days. It has made Executive properties. The scheme came in in tentative beginnings but, as far as we are aware, no November 2000 and from our experience, or the substantive work has been undertaken on it and we experience of our clients, we would have some would like to see that. The scheme has now been in concerns about the operation of this scheme and operation for three and a half years and it requires whether or not it is operating eVectively. One of the that kind of substantive review. things which it has done is remove absolute priority from homeless applicants. You may consider that is Q361 Mr Bailey: Can we just go on to the House a move in the right direction or you may not Sales Scheme. What views have you got on the depending on your perspective, but we have got to proposals contained in the DSD consultation consider the impact which that has on our homeless document on the House Sales Scheme? people, not just young single homeless people. There Ms Hunter: We very much welcome the review is an issue about whether or not they are now which has been undertaken of this scheme. spending longer in temporary accommodation. Obviously working with the type of client group Frankly, that analysis has never been carried out and which we do, which is very often people without a we think that is the sort of analysis which needs to be home, we are very conscious of the need to balance looked at. We have got concerns that single people the aspirations of people to be home owners and the and, indeed, other groups are unfavourably treated aspirations of those who quite simply want a home. by this scheme. I am thinking particularly about We feel that up until now this scheme has not been people with mental health problems. The focus balanced. The details of the scheme we are largely under the scheme is very much on functionality and fairly happy with, I think it includes almost physical disability and we find for our clients it is everything which ourselves and other organisations very diYcult to get priority for people with mental in the voluntary sector have probably called for. We health problems. Earlier Fiona alluded to part-time are very glad that we appear to have been listened to. parents and we think they are treated unfavourably The issues which we would have remaining with the under the scheme. It is not just young single people, scheme are probably around the level of discount. It we think single people generally are disadvantaged would be our view that the discount level proposed, and certainly those with mental health problems and the maximum discount level of 24,000, is still very part-time parents. The Housing Executive have generous. The document does not go into the details committed themselves to carrying out an equality or the rationale as to why 24,000 has been chosen as impact assessment. I do not know whether Members the preferred level and we would like to hear that are familiar with that terminology but basically it is rationale, we are not sure why 24,000 has been where they will undertake a review to look at chosen. It does seem very generous and it is still more whether or not the scheme is adversely impacting on generous than England, Scotland or Wales, as far as any of the groups which are protected under section we are aware, and yet market values here would 75 of the Northern Ireland Act. That would include probably be slightly lower than some of those areas young people, people with dependants, and people and it would appear to be a significantly greater with disabilities. That detailed assessment was discount than has been aVorded in other areas, such scheduled to begin at the beginning of this year, as I as England, Wales and Scotland. We would like to understood it, but we do not see a lot of evidence that see the discount level reviewed again. The other much progress has been made. I think we would like concern we would have about the scheme, and to see that expedited. maybe this is more about clarification and in our response we will be asking for this, is that in the scheme which has been produced there seems to be Q359 Chairman: Who is carrying that out? insuYcient precision about the exemptions, which Ms Hunter: That would be carried out by the properties are going to be exempt. It does talk about Housing Executive but there is a requirement that sheltered housing and it is very closely modelled on they consult fully with the key stakeholders and the wording which would have been used in the obviously that is something which groups like previous Housing Executive scheme but, of course, ourselves would be very keen to be involved in. We this is now a scheme that we are talking about rolling are very keen to see adequate user involvement in out to include housing associations as well and this as well. It is not adequate just to do a statistical housing associations would manage quite a lot of analysis, we really need to talk to the people who are what we would call supported housing. We are very being aVected by this scheme. We would like to see unclear. I do not think it is in that document as to that expedited and we would like to see full user and how supported housing would be treated. Those stakeholder involvement in that scheme. We did sorts of details need to be ironed out before the have concerns before the scheme was introduced scheme is introduced because that will be very that obviously there were going to be winners and important and it is best to have clarity from the losers and we thought we could see who the winners beginning than to leave it up to a court to decide on and losers were going to be and the operation of the a case by case basis as to whether a property is scheme has not reassured us that we were not right. eligible to be treated under the House Sales Scheme. We would like to see that full analysis undertaken. Those would be our concerns about the details of the Northern Ireland Affairs Committee: Evidence Ev 165

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan scheme, that we need a bit more detail on accommodation and we would have to say the exemptions and also the discount is too generous. clients we deal with on a daily basis do not tend to There are obviously broader concerns about live at the luxury end of the market, so you will ultimately what will the impact of this scheme be, appreciate my comments will be coming from the bringing housing associations in under the House perspective of those who live in the poorer quality Sales Scheme, what impact will that have on their accommodation. You will be well aware from the ability to deliver the new build programme that evidence you have heard previously that in general Fiona talked about earlier. As you are all well aware, the private rented sector does have much poorer the housing associations are nearly almost all sole quality housing with higher levels of unfitness, much providers of new build. Our understanding is that greater levels of disrepair, than in the social rented there is some nervousness amongst the lending sector. There are also much poorer management institutions about what extending house sales to standards and that is important. It is not just the housing associations will do to their credit rating. physical characteristics of the building, it is also the Will they still consider them such a good investment? standards of management and, again, there are great There is also the ultimate impact of what the variations in practice there. There are very good department is going to have to pay out in voluntary examples but also very bad examples. In that context purchase discounts because they have to repay all there are concerns about both management and the discounts to the housing associations. Our maintenance standards at the lower end of the understanding is that comes out of the amount of spectrum, which is ultimately where most homeless money that has been allocated for the housing people would find themselves, they are unlikely to be programme, so if that increases mathematics would accessing the luxury end of the market. What the tell me that that decreases the amount of money that private rented sector has, which I think is positive, is is available for new build. Maybe it is not as simple that it oVers a degree of flexibility which is not as as that but I think that needs to be looked at very, obviously available in the social sector and quite very closely. We do not want to get into a situation often it can also oVer people the opportunity to live where so much money has been paid back to in a mixed community whereas the majority of social compensate the housing associations for the housing will be quite polarised. If people genuinely discounts oVered that there are insuYcient funds to want to live in a mixed community sometimes that meet and produce the number of new homes that option is more readily available in the private rented we need. sector. Those are the positives, if you like, but there are a lot more negatives I would have to say. Firstly, Q362 Chairman: You talk about the impact on there is an issue about accessing the private rented housing associations and one of the issues that we sector for homeless people. Very often the practice is picked up in a Northern Ireland context is that there that landlords require rent in advance or substantial are a lot more smaller housing associations than deposits which often people on low income are would be the case in GB. If you have a house sales unable to provide. We do have a number of rent policy which could impact more because you have guarantee tenancy deposit schemes operating in got small housing associations, do you feel that some Northern Ireland but they do not oVer of those housing associations could be under threat? comprehensive coverage. What we would like to see Are there too many housing associations? Should is something similar to what is just being introduced they merge? Are there concerns in terms of the sector in the Housing Bill in England and Wales, which is itself could be vulnerable? some kind of protection for the tenancy deposit Ms Hunter: I think it is a very real threat to the schemes to try and overcome that hurdle of access smaller housing associations that the impact of for people. The other issue for homeless people when house sales could be it is no longer feasible for them they go into the private rented sector is really about to operate independently and that could ultimately an ability to sustain those tenancies. A major issue lead to what some people might term rationalisation for our clients would be around aVordability. About of that sector. a quarter of all the enquiries we receive from people around the private rented sector is about V Q363 Mr Bailey: Can I turn to the privately rented a ordability and that is linked very closely to sector now and I will roll a couple of questions into Housing Benefit and the administration of Housing one for brevity’s sake. First of all, what contribution Benefit. It is a serious issue for us. The levels of do you think the private rented sector can make to benefit which are being paid in Housing Benefit very, meet the needs of the homeless? Secondly, are you very often do not meet the actual rent which is being satisfied that the recently published strategic charged and there is a reliance then on a framework on “Renting Privately” contains discretionary housing allowance which the Housing appropriate measures to ensure that, where the Executive have discretion over whether or not to pay private rented market is used as an alternative to in the first place and how long they will pay it for. social housing, the accommodation is of an What we find is that very often people who are appropriate standard? unable to access that discretionary allowance very Ms Hunter: The private rented sector is a tenure of quickly fall into arrears and they lose the tenancy. increasing importance in Northern Ireland, as I am That can lead to a situation where if they present as sure you are aware. It covers a broad spectrum of homeless they are treated as intentionally homeless both properties and practices, right from the luxury because they have lost their property because of rent end of the market to much poorer quality arrears but they are simply not able to make up the Ev 166 Northern Ireland Affairs Committee: Evidence

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan shortfall from the income that they have. The issues statutorily unfit properties, so it is absolutely the of Housing Benefit and the levels of Housing Benefit worst. We think it will be eVective in tackling those and general aVordability in this sector are the real and also better enforcement for the repairing issues for homeless people going into this sector. obligations that are around in the private rented Another important issue is that in the private rented sector. Where we think it falls short is probably the sector, there is very limited security of tenure by and fitness standards which are being used are fairly large, a lot of it depends on the individual basic. They are still those that were included in the relationship between landlord and tenant and the 1992 Housing Order which are basic amenities. You tenancy can be very quickly brought to an end. In can live in a house which is statutorily fit and still it many cases that is not a long lasting solution for can be a real health and safety hazard. For example, people, it is more of a stopgap. That does largely it does not look at things like defective electrical depend on the relationship between them and the wiring. We think in the 21st century those standards landlord. One of the initiatives which we would be are not really adequate. You will probably be more quite keen to see introduced is some kind of familiar than I am with the new system which is now mandatory arbitration, mediation scheme between being introduced in the Housing Bill in England and landlords and tenants. A significant amount of our Wales, which is the housing health and safety rating enquiries are about a breakdown in the relationship system. We would like to see the potential for the between the landlord and the tenant and at the application of that higher standard to Northern moment there is very little recourse to resolve that Ireland because the standard which we have got is dispute, it generally means the tenancy does come to not adequate. an end. We would like to see something like the Private Residential Tenancies Board which is operating in the Republic of Ireland at the moment Q365 Mr Bailey: My third question was going to be on a mandatory basis. I know this is something on the issue of Housing Benefit, private sector rents which the department have said they will consider and homelessness, which I think you have pretty well piloting on a voluntary basis, and that is very covered. Is there anything you would like to say on welcome in itself, but we would say on a voluntary that issues which you have not covered so far? basis it will not work, just as the licensing of houses Ms O’Bryan: As Janet was talking I was reflecting on V in multiple occupation did not work on a voluntary some of the issues that had a ected some people we basis. On a voluntary basis you will only get the would be working with who have moved out of good landlords coming to the table and they are not temporary accommodation into the private rented the people we need to target. The last point I would sector and were threatened with homelessness, not make about the appropriateness of the private necessarily because of the issue around the rented sector for homeless people is around access to discretionary Housing Benefit, although that is a support that Carol alluded to earlier. Very often real issue for folk, but around the administration of there are support issues for people who are homeless the basic Housing Benefit. One woman we were and it is obviously much more diYcult to access working with who was visually impaired, so moving those kinds of support services if you are living in the her to her own accommodation meant a lot of time V private rented sector rather than the social rented and e ort from ourselves, from housing, from health sector which is quite closely controlled. There is a and social services to orientate her to her new trend recently for an increasing number of people for dwelling and her new geographical environment, whom English is not the first language to live in the because of the inadequacies in managing the private rented sector and there is an issue for them in administration of her Housing Benefit was going to terms of accessing services, even knowing that be made homeless. I use that as an example. The services are available. I think the short answer is no. energy that went into trying to stabilise that There are positives but there are grave concerns situation to make sure that did not happen, and it about the private rented sector as a genuinely hung over that woman for a good two or three attractive alternative to the social rented sector. Do months as to what was going to be happening to her, you want me to touch very briefly on the adequacy shows another part of it. There are issues around the of the strategy on the private rented sector which has general administration that I would want to just been produced? reinforce of Housing Benefit. Ms Hunter: Just one final thing I would like to add is that somebody once said that there is a lot of talk Q364 Mr Bailey: Yes. about preventing homelessness and the one thing Ms Hunter: We would welcome the production of that could probably do more to prevent the document and we would particularly welcome homelessness than any other thing is to review and the fact that it has come out of the joint document reform the Housing Benefit system. Certainly from between the department and the Housing Executive, the experience of our clients, on a daily basis we deal who are obviously two key players. It is very with people who are losing their homes precisely important that they are working in a co-ordinated because of the situation which I described earlier. It fashion. There has been a commitment that the seems to me to be an area where government policies strategy will be taken forward by an implementation are conflicting. Obviously there is a desire to keep group and, again, we would like to see that up and the Housing Benefit bill down, but at the end of the running as soon as possible. We think it will be day is it really value for money to the public purse if helpful in tackling the worst conditions in the sector the result is that people are being made homeless and but the legislation which is proposed is focusing on have to be put up in temporary accommodation for Northern Ireland Affairs Committee: Evidence Ev 167

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan long periods. That is not something which you can move in the direction of improving standards and make a superficial judgment on, it is a very serious improving the quality of our stock and that is an issue. I do not think it is something which the important matter to all of us. government can continue to ignore and duck, serious research needs to be undertaken into that, Q367 Mr Luke: Thermal comfort is something that the link between Housing Benefit, the regulations we discussed earlier. Thermal comfort is a bigger and also the administration of Housing Benefit and issue in Scotland than it is in England, I do not know its ultimate impact on homelessness. If that link is as about the comparison with Northern Ireland, it is strong as the experience of our clients would suggest, warmer here than in Scotland. In your response you and I acknowledge that we are dealing with a talk about looking at the introduction of much more particular end of the market, would it not make eYcient and eVective heating systems. You may be better economic sense to make some changes to the aware of the Scottish Executive’s initiative to Housing Benefit system so that the private rented introduce a heating for all programme, especially sector could be a viable alternative for these people? targeting the elderly. Is that something that could be Ms Boyle: Can I mention one example in relation to introduced here in Northern Ireland? young people. In Foyer’s, what we are trying to do Mr MoVat: I am not familiar with the details of the is get young people out of the homelessness trap by Scottish Executive’s proposals, therefore I am at a encouraging them into education and training so bit of a disadvantage in answering that. Basically that they can then aVord the private rented sector. what we are saying is we want to see the standards The current 16 hour rule means that young people improved. The fitness standards have served us well cannot study full-time. That 16 hour rule within over the years but we want to see them further Housing Benefit restricts their ability to get their improved. Anything that does that, any qualifications and get back into the housing market. recommendation that you make in that direction, we Just following on from what Janet was saying about would probably support. We want to move in that the dichotomy between the policy and the practice, direction. Can I add something else to that. that is one example for young people. Particularly we welcome the focus on the whole Chairman: We started to touch on standards and I question of quality because quite often it is ignored know my colleague, Mr Luke, has got some in favour of things like supply and legislation for the questions on standards. homeless, and so on and so forth. We welcome the focus that you have put on quality here, we think it is a fundamentally important issue. I just wanted to Q366 Mr Luke: We have touched on the private make that point to you. rented sector standards but this is a more general question. In a previous evidence session, witnesses to Q368 Mr Swire: You will be aware of Shelter whom we have put the question of overall standards Northern Ireland’s concern about the transfer of have generally favoured the introduction in new build and I wondered if you thought that a Northern Ireland of a Decent Homes Standard mixed funding regime was compatible with ensuring similar to that that has been introduced in other high build standards in the social sector? parts of the UK. One of the issues raised in this Mr MoVat: I suppose it depends on what the rate of discussion is, given the lower level of poor quality grant funding from the department is, I would housing in Northern Ireland relatively speaking, imagine. If the department had a policy of pushing would that standard be exacting enough for the it down then I think there are going to be diYculties circumstances in Northern Ireland? with regard to the quality of the stock that is Mr MoVat: I will try to answer the question. ultimately delivered. There is some evidence that Obviously the question of quality of housing is suggests that contemporary association dwellings fundamentally important and as part of that the tend to have a lower space standard, for example, question of standards has to be fundamentally particularly outside and their environmental works important. We are in favour of raising standards. are of a lower quality than used to be the case with The fitness standard is a pretty basic standard, as Executive built dwellings. I cannot say whether that Janet has already said, and the Decent Homes is the case or not but I have heard Executive staV say Standard is a bit higher than that, so we would that to me. There is a general concern that mixed support a move in that sort of direction that focuses funding could lead to a situation where the quality on not just fitness but amenities and also the of the stock is lowered but it depends where you question of thermal comfort, the question of health place your rate of support from the department and safety, even questions of eYciency, for example, itself. This is something that the local associations the eYcient use of energy, eco questions, themselves could discuss in more detail than we can. conservation type questions. We are in favour of moving in that direction. I think you have already Q369 Mr Luke: I want to cover two areas which I suggested that the standard of our stock here is have been involved in for some time. In an earlier probably lower than it is in England or Wales or role I was for 18 years on a planning committee in Scotland and, therefore, it may not be appropriate in Scotland on a local authority and I was convenor of the short-term to follow the exact details of what is a housing committee in Dundee for about seven happening across the water but I think we are in years. One of the questions reverts back to the earlier favour of moving in that direction. That would be provisions for homelessness. In Scotland, the UK, our general position on that matter, we want to the local authority is the primary provider and Ev 168 Northern Ireland Affairs Committee: Evidence

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan strategic body involved in the provision of housing. Mr MoVat: Can I just add that they do have a Given that you have got the Housing Executive here statutory involvement through the Housing Council and the local government plays a lesser role in who have to be consulted and obviously they like to housing, is it a good thing or a bad thing that there present their case in terms of their own party or in is no local government involvement? terms of the local authority with regard to policy to Mr MoVat: I would say that is essentially a political the Executive or the department directly, so they are question. Personally, I think the establishment of the involved at that level anyway. What Janet says is Executive was a very good reform and I would be true, of course. I used to work in a councillor’s local very supportive of it. I think they have done a good oYce so I know quite a lot of housing cases come in job, they have brought professionalism and focus on or come in to advice centres run by voluntary housing need. They took the debate out of the whole organisations. arena of sectarianism in as much as they could do it Ms Hunter: They do have a very, very genuine and that allowed us to focus the debate on housing interest in housing and I think that was very need, which is what we are doing here. If you look apparent when the Assembly was operating locally, back at old newspapers, the whole focus was on the whole issue of housing was moved right up the Protestants getting more than Catholics and vice agenda. versa, but we have got beyond that now. It is not clear to me what the advantage would be in transferring housing to local authorities. At the end Q372 Mr Luke: It is one of the reasons we embarked of the day it seems to me the question is what is the on this inquiry, to keep the Assembly going. Turning need? How do you measure the need? How do you to planning, we have had some discussion that the V meet the need? How do you allocate your dwellings? planning model is di erent from the British model V How do you manage them? That is a professional and English model, it is di erent from the Scottish issue and it should be done by a professional body. model, but how would you like to see the planning system used here in Northern Ireland to encourage or require the delivery of suYcient numbers of Q370 Mr Luke: In Scotland I would be the first port aVordable and social housing in Northern Ireland? of call as a local councillor for homeless people in Are there any changes that you would like to see many cases. I do not know what the equivalent is in made, any improvements? Northern Ireland. Who has the major role in Mr MoVat: I think I have been given the short straw advocating the rights of the homeless? Is it the on this one! I would like to make a specific point first local council? of all. We did make a suggestion in our own V Mr Mo at: The first port of call here is the Housing submission to you that there should be a look at the Y Executive district o ce or the Homeless Advice role of the planning service regarding the delivery of Centre headquarters. You must remember, public sector programmes. A former minister, Des although we make a lot of noise we are actually very Browne, did send a letter to the former Lord Mayor small, we are talking of a million and a half people, of Belfast, Councillor Maskey, stating that there are equivalent to somewhere the size of Yorkshire for possibly some planning problems associated with example. You could argue that Northern Ireland is the delivery of the public sector programme. We do not much more than a large local authority area not know what they are and that is why we have anyway. On the homeless question, the first port of suggested that they should be investigated. We also call here is to the Executive. It could be to Simon, but suggested that there should be a community type if you are talking about the statutory first port of call approach to planning which would involve the you are talking about the Housing Executive. Executive and also involve the planning service and Ms Hunter: I just wondered were you talking about allow people themselves to develop their own who acts as an advocate on behalf of a homeless neighbourhoods, their own villages and their own person. towns. That is a bigger issue than housing but that is a possible way forward. I think there is room for that Q371 Mr Luke: Yes. type of development following at some stage in the Ms Hunter: I would just like to reassure you that future the outcome of our review of public even though our elected members are not directly administration. The other issue is this whole issue of involved in allocating or managing housing, they are planning gain, which is what you are alluding to still very, very eVective advocates. A lot of people as really, where, for example, a developer has to set their first port of call, if they were unhappy or unsure aside, say, 20% of a site for public sector housing. I what to do, very often would go to their local think there was some attempt in the Republic to do Assembly Member or their local councillor. If you something along those lines but I do not think it met speak to any elected member or any councillor in with a positive response from developers. I am not Northern Ireland I think most of them will tell you an expert on that. If it makes sites available at the that most of their constituency enquiries are about right cost and allows the programme to be built that housing, it is still right up there, even though they are has to be built then we would welcome it, but it is not not directly involved. There are some that would say clear how it would work in practice. you could be a more eVective advocate if you are Ms Boyle: Could I come in there to add that maybe slightly removed from the decision making process. there is room for an investigation into the planning It is not that they are not involved, they are still very diYculties that have been noted in the delivery of much involved but not directly involved in the social housing build. That seems to be one of the management or allocation. reasons that we keep coming back to, that there are Northern Ireland Affairs Committee: Evidence Ev 169

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan planning issues and planning diYculties and there is Ms O’Bryan: Being one of the members of that a need to look into that. A further point is in relation group, as is Janet, at one level I would not have to housing associations where not just for specialist concerns because the work that was done in the housing but for general needs there is a requirement latter months has been very useful work looking at on them to consult and that is probably one of the issues to do with community attitudes to other reasons that causes schemes to fail and not to homelessness and taking a commitment to tackle be taken forward or not taken forward at the right some of those issues. It was really good to get those time. There is a need for further investigation there. issues around the table. If some of the issues that came in the latter part of the work of that group Q373 Mr Luke: Obviously you have raised at the end come out in the final consultation report then that of your contribution something that I was going to delay would be a delay that has been worthwhile, but move on to anyway, and the key words are the big issue there is if they come through in the final “partnership working”. Are you satisfied with the consultation report. I am comfortable enough about level of partnership between the DSD and Northern that delay at the moment because I think we have Ireland Housing Executive in the promotion of made good use of that and have come up with what policy development? I and others believe is actually quite a good robust Ms O’Bryan: I will start oV. The two main vehicles report at this stage. for that engagement at the moment would be Ms Hunter: I would just endorse Carol’s comments. through the Promoting Social Inclusion Working It was preferable that we took a bit longer and Group on Homelessness, which is led by the produced what we hope will be a very useful Department for Social Development, and also substantive document rather than trying to take through the Northern Ireland Housing Executive’s shortcuts. It is a very serious issue and it deserves to Homelessness Strategy Steering Group. In both of have serious consideration. those groups the lead organisation has invited Mr Luke: We will look forward to seeing that. representatives from the voluntary sector around the Thank you very much. table, so in terms of engaging us in the debate around the table I would have to say that they certainly need Q375 Chairman: A few general questions. First of to be acknowledged for doing that in a very positive all, targeting social need. How well are the Executive way. The relationship is always one where there has and the housing associations doing in terms of their got to be some tension because our agenda and their own targeting social need? Is there evidence of good agenda is not necessarily going to be the same. In performance, of focus on targeting social need, or is principle it may be the same agenda but when you it something they add on? get down to resource issues and how policies work Ms O’Bryan: On the Housing Executive front the out in practice then you start to get the tension. As main vehicle would be through the Homelessness a general model, I think there are good ways of Strategy, so that means there are other people who engagement at that level but as you come down from are in housing need and who need social housing the higher level into the engagement at the more who do not come within that. If we are talking local level then the scenario would be either one generally about those folk who are in need of social where there are good collaborative relationships and housing the main vehicle, as I see it, would be good engagement or, at the other end of the through the Homelessness Strategy. That being said, spectrum, there is an inability to want to engage. given the commitment through new TSN or the Going back to the higher level issues in terms of the five% of departmental budgets to be skewed towards Promoting Social Inclusion Working Group on need, once again that could be happening but how Homelessness, we are moving to the stage where the that is happening is not made known and it is not consultation report should be released some time transparent, so it would not be clear to us in that during the summer and then there will be an regard. In terms of the Homelessness Strategy, there opportunity for people to respond. We will wait to is a highlighted need for temporary accommodation see what comes through in that final report to see if units and that is being reflected within the housing the issues are there that we believe were hard fought association development programme. There is some around the table, which were issues primarily not for tie-up between that, which is very helpful. That also DSD but for some of the other government being said, we have schemes which are being departments because this is where the real action developed so we have the capital go-ahead for those begins. Homelessness or housing could be seen as schemes but the Revenue for those schemes is not as just a DSD issue but it is much wider than that. Even yet guaranteed. Obviously one would not like to in terms of planning it is DRD and DoE, so it brings think that a capital development would go ahead in two other government departments right away. and the revenue costs to fund the running of that Because of the complexities of that, that means that building would not be forthcoming but engagement can be much more diYcult and the organisations have to go forward with a certain results of that engagement may not be as productive. degree of faith in relation to this one.

Q374 Mr Luke: The report of the Promoting Social Q376 Chairman: The Simon Community called for Inclusion Group was supposed to be out in March a Regional Housing Strategy and I think, as we are and has been delayed. Have you got any concerns approaching the final lap, you will recall that earlier given that you were talking about diVerent on I asked a question which I said we would come departments looking at the implications of it? back to. It is probably the shortest question but the Ev 170 Northern Ireland Affairs Committee: Evidence

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan hardest to answer. First of all, how do we prevent experiencing what we are in Great Britain, which is homelessness from the point of view of your a significant proportion of homeless people coming organisations? What is the one thing we ought to be from those who have led a regimented life in the doing to prevent homelessness that you would write Armed Forces? in this strategy? Ms O’Bryan: In terms of those who would be Ms O’Bryan: Are we only allowed one thing, presenting because of some kind of sectarian or Chairman? We will all take a diVerent one. intimidation issue, where it is a situation that is likely to be reported in the national media in terms of the Q377 Chairman: Do feel free to go further. I am feuds, for example, those people are either writing this Regional Strategy and at the top it says supported through people in their own community, “We have got to prevent homelessness”, but can you moving out to caravans or holiday caravans as a way suggest how we would do that? out of the area, or they are supported by the Housing Ms O’Bryan: I tend to come at this from two levels. Executive. By and large those people are not the One is the structural issues and one is the reasons people who are coming to organisations like ours why people immediately present as homeless. We looking for support. That is when it is a high profile always look at it in both ways. On the structural feud situation. In terms of intimidation, we do get reasons, the two key issues are the issues to do with individuals who are required to leave their area the housing market and having a more robust social because they may be perceived by the people who housing market than we currently have and one that control that area as engaging in some antisocial has good quality standards within it. The second behaviour which they, as the people in control of the part of that are the issues about tackling our long- area, do not like. We would support those term unemployment and issues around that. Both of individuals. They are a small part of the work that those things have routes up through the new TSN to we do and that work can only happen whenever the national action plans within the European there are other organisations that come and work alongside us because for some people—not so much context. They all feed in through that route. When V we come down to the experience of the individual, now, it is dwindling o somewhat—they might have we have looked at an analysis of diVerent ways to to leave the country because of their own personal help prevent homelessness and obviously the safety. It is a feature, but in terms of the work that structural one is one way in which it can be tackled we are doing it does not come up in terms of volume in the longer term, but then there is identifying those to the kind of scales that issues like family groups who we know are likely to become homeless. breakdown, unemployment, etc would come up to. We know the young care leavers are likely to become In terms of the ex-Armed Forces, from my homeless, we know that people who leave school knowledge, and I would need to look to my without qualifications are likely to become colleagues here because I can only talk about the homeless. There are indicators that we have already 4,000 people who would we be supporting in any one and it is about trying to get engaged with those year, that would not come up as a significant issue people before a crisis comes around. The big issue is for us. how you measure impact. Then there is trying to Ms Boyle: I know that it is not reflected in the identify groups which the likes of Shelter and Housing Executive’s statistics and I do not think Housing Rights Service will work with trying to pre- that it is with any volume across the voluntary empt the homelessness situation so for people who sector. are having diYculties with money management, Ms Hunter: I do not think it is as significant an issue with relationships, going in there and doing some as it would be in England, for example. work with them and then responding to people at the V stage of homelessness. There are those four di erent Q379 Mr Luke: In the first part of your answer to layers. Finally there is the re-prevention. I think we Hugo Swire you mentioned the issue of structural are probably aware of the revolving door syndrome elements in combating homelessness and that was in relation to people with mental health problems one of the starting points of this inquiry, the PC’s but for some of our homeless population there is a criticism in his report of the Housing Executive and revolving door syndrome. Part of that is to do with how targets they were setting were not being met for their lifestyles and them not being able to settle the build of new units of social housing. One of the anywhere and not being able to engage in any issues we have raised with previous witnesses is, are support services, so there is a small group that would the housing associations big enough to actually apply to, but there is a larger group which is about provide the muscle to get these housing units on the trying to get people moved on to sustainable ground? The Housing Executive was a very eYcient tenancies, and Janet, Fiona and Laurence have body, is there a case for bringing back some talked about that. What does that look like when responsibility for new build to the Northern Ireland you move into your own tenancy and have good Housing Executive to fill that gap because it could support there? I think there are five layers to that as play a part in the ability to meet the demand for we would see it. homelessness? Ms Boyle: If I might suggest that what we need is Q378 Mr Swire: I am interested that in none of those further investigation of the performance of DSD five points you referred to those who are internally and the housing associations. Out of the 39 housing displaced and rendered homeless by the sectarian associations, which ones are able and capable and problem. Is that a factor? Secondly, are you have the management structures and finance to be in Northern Ireland Affairs Committee: Evidence Ev 171

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan the development programme because clearly they for the Future document suggested the Executive are not meeting their targets. We need some form of should be the regulatory body for the associations review to see the delivery mechanisms, the and this was also supported by others. If that should structures. This also takes us back into the whole be the case, if the building programme of the argument about where does the finance come from: Executive was going to be given to the associations, mixed funding, should we have more from the then the Executive would be in a better position to private sector? DSD are telling us that for every 10 make sure that the new build programme was million of private finance roughly 155 houses are delivered given their own experience of being a large produced and yet in year we just have 25 million scale builder. That was not done and that was not coming in from private finance. There are a whole lot followed through by the minister in the DSD, in of interconnected issues here about delivery, other words by the Assembly here. That would be capacity and capability and coming back again to either Maurice Morrow or, I assume, Nigel Dodds. the Net Stock Model of what we are actually Maybe my colleagues know the explanation as to predicting we need and then funding that why it was not done, I have never heard an accordingly. That is the crux of the structural issue explanation why it was not done. I would have that Carol was talking about. thought if you do transfer the building programme Ms O’Bryan: There is also a Northern Ireland to the associations then the Executive should be the historical community perspective because, with the regulatory body and the co-ordinating body for the development of the housing association movement, building programme. I think this is something that quite a number of our small housing associations you, as a Committee, should look at too. would be growing very much out of the needs of a particular community and at that stage are Q381 Chairman: Our sincere hope is that the work providing an incredibly valuable service both in that we are doing as a Committee will guide the terms of housing for the people in their area and Assembly once it is back up and running. One of the creating some regeneration within that area. If they reasons we wanted to concentrate on this now was are no longer able to do significant development one we did not want the momentum to be lost just as we very clear approach may be a question around their are starting to come to terms with some of these very future but I think the management of that would be serious questions. I think we have asked all of our incredibly sensitive because of the strong questions but I just want to check with yourselves community identity and also given that we have whether there is anything that we have not raised quite a number of our government documents, that you would have expected us to or any additional Pathways for Change being one of them, which are points that you would wish to raise that you feel pushing community development as a model to be would be valuable to us in our report. embraced and there might be at one level a general Ms O’Bryan: I have one minor point, if I may, going managerial approach to this saying that this can be back to the very beginning talking about the sorted in order to help the delivery. There is a really statistics on homelessness, and it was an important important process in there because we cannot ignore omission. It is what happens to the under-18 year the history of that and the value that those V olds who present as homeless. Our concern would be organisations o ered at the time. Yes, I think we that they are not all reflected within the figures. Our have moved on from that and if we were now reason for saying that is our experience is that all creating a system I do not believe we would come up under-18s that present to us are not subject to with the model that we currently have to engage homelessness assessment. That would be general with, I do not think that for one moment, but in experience within my own organisation. That is an many ways the system we have reflects where we important part of the hidden issue there, Chairman. have come from and any movement away from that would need to be a very clearly planned and phased movement. It does need to be simplified. When you Q382 Chairman: It is certainly a question which, as are hearing things like two housing associations a Committee, we should be asking in terms of bidding over the same plot of land, that is folly. At numbers and what impact that has on that particular the end of the day, in part that is coming out of the group of people. public purse and that is not where we need to be. Ms Hunter: If I can add one final plea. I am good at pleas. One very simple practical thing which I think government could deliver on which would help Q380 Chairman: That is a very valid point. significantly in preventing and tackling Mr MoVat: Obviously if you are going to return the homelessness is harnessing the commitment of all build programme to the Executive you would have the departments, not just the DSD, not just the to do without mixed funding or else you would have Housing Executive, to tackle this issue. It is a to change the constitution of the Northern Ireland priority for the department, it is a priority for the Housing Executive to contract private finance. In Housing Executive, but we have said time and time the short-term, I think what Fiona says is important, again that homelessness is not just a housing there should be some review of the ability of the problem and they cannot do it on their own. It is department and the associations to deliver a housing very, very frustrating to put so much work into a programme and if they are not doing that, why not? strategy or a Promoting Social Inclusion report and There was a document produced here in the mid- know that it is not in your power to deliver it, and it 1990s by the last direct rule administration before requires the same level of commitment from the the Labour Party came into power and the Building other departments. Ev 172 Northern Ireland Affairs Committee: Evidence

15 June 2004 Ms Janet Hunter, Mr Laurence Moffat, Ms Fiona Boyle and Ms Carol O’Bryan

Q383 Chairman: Health in as much as drug sit in isolation and it cannot be tackled in isolation. treatment. That is a heartfelt plea and maybe something you Ms Hunter: Obviously health is the main player and could do for us. also the Northern Ireland OYce, probation, the Chairman: The point is well made. I am sure that we Department for Education and Learning. It does not will reflect that in our report. Thank you so much, it has been valuable to us and we are very grateful to you for coming along and giving your expertise. Northern Ireland Affairs Committee: Evidence Ev 173

Wednesday 30 June 2004

Members present:

Mr Tony Clarke, in the Chair

Mr Iain Luke The Reverend Martin Smyth Mr Stephen Pound Mark Tami

Witnesses: Rt Hon John Spellar, a Member of the House, Minister of State, Mr David Crothers, Director of Housing and Mr Jerome Burns, Housing Policy Branch, Department for Social Development, Northern Ireland OYce, examined.

Q384 Chairman: You are welcome, as always. is—as there is across the UK—a steady shift. I do Thank you for taking time to be with us. not think, therefore—getting back after a long Mr Spellar: I did not realise that it was optional! explanation of my position—it is as stark a choice between two alternatives. Rather, it is a part of Q385 Chairman: We would like you to think that where we are on the spectrum. there is an option! You will know that we are coming to the end of our inquiry into housing in Northern Q386 Chairman: There are properties that are easy Ireland, and that we have interviewed a broad to sell under right-to-buy and there are properties in section of the community. This session allows us to areas and estates which are very diYcult to sell on. put some questions to you that have accumulated Is there a fear that, at a time when we are moving throughout those sessions. I wondered if I could towards most planning policy being pointed towards start with a topical question, given the question that mixed tenure, we are creating social housing areas was raised with the Prime Minister this morning in that prevent that promise and that advantage of respect of social housing policy and choice. During mixed tenure? our inquiry, people have said to us that the social Mr Spellar: I do not know. For example, if I went to housing sector, particularly because of right-to-buy, south Belfast—and I am not exactly sure whether it can be seen to be in decline; that it can continue to is in Mr Smyth’s constituency—one of the decline in size and develop almost as a residual complaints of tenants is that some of the land sector, or it can be reinvented into a high-quality adjacent to their estate is so attractive to private sector of choice. It is very clear that a policy shift development that areas they think should be going would be needed to ensure the latter. Is social for municipal housing are going for private housing. housing in Northern Ireland viewed by the So you would be having Housing Executive tenants Government as a residual sector? If not, what vision and private occupation cheek by jowl. You are does the department have for changing that view? absolutely right that we have some estates that are Mr Spellar: I am not sure that, in terms of the policy less desirable, but in some of those cases less options, it is exactly as black and white or as stark a desirable also for renting. Sometimes that is not contrast as you are describing the views put by entirely due to quality of housing, but due to some—but I recognise that there is a spectrum location and consequential problems associated, for within that. Partly within that spectrum is an example, with being close to an interface. While increasing percentage of owner occupation. We are, there might be a broad truth in what you are saying, as you are aware, under some considerable pressure I think that there are a greater number of to increase housing allocations on the planning side, complexities within this in Northern Ireland than via strategic planning responsibilities, 25 out of 26 there are in England and Wales. local authorities in Northern Ireland have requested an uplift, reflecting demand for private sector owner Q387 Chairman: The DSD has three key housing occupation, and that is also reflected in house prices. policy areas—new build, co-ownership, and house That is therefore one side of the equation, and a sales. Could you inform us of the high-level targets considerable number of tenants have exercised their that the DSD has set to measure the combined right to buy. On the other side of the equation there eVect of those housing policies? are still something like 100,000 social housing units Mr Spellar: There are a number of areas there. On in Northern Ireland. When the term “residual” is the question of new build, the high-level target of used, it can sometimes be said almost as though our best estimate of the number of properties these are the less desirable properties. Obviously needed is 1,500 a year, although there is discussion there has been take-up of some of the more desirable taking place with the Housing Executive regarding properties, but—and that will probably come out that. While in broad terms 1,500 would be the during the course of other questions—still some very correct figure, there is an argument that says you good-quality stock, and a lot of that good-quality really need to top that by about another 250 in stock still within Housing Executive ownership. At order to deal with areas of higher demand the same time we have hit, in the first couple of years, compared with areas of lower demand—some of our targets for housing from housing associations, that relates to the matters I referred to in my last and just marginally missed it in the last year. So in answer. It is also fair to say—and no doubt we will fact we are replacing some of that stock but there explore it a little more in detail—that our current Ev 174 Northern Ireland Affairs Committee: Evidence

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns funding, although we are bidding in for have found that the targets set for co-ownership supplementary funding, is for 1,300. Perhaps I based on previous activity levels have been could just park that—and obviously we will want to reasonably accurate. return to it—and turn to co-ownership. Co- ownership has worked well and has been a success. Again, it plays a part, but I think it probably fair to Q390 Mr Luke: Over the last two years there seems V say a moderate part—although it has helped several to have been a drop-o in the funding available for thousand people. We are then talking about the co-ownership. It has dropped from something like role of the private sector, owner-occupied housing. £12.9 to £7.9 million, despite the fact that it is a very The private rented sector is another issue, which we popular option. Is there any reason behind that? may come on to. In terms of private sector, owner- Mr Burns: The reason that the department’s occupied housing, with the strategic plan there have allocation to co-ownership has dropped is that we been allocations to local authorities right across have been encouraging co-ownership to recycle its Northern Ireland. Within that, as I identified, receipts on a more proactive basis. Up until about something like 25 out of 26 local authorities have 1998 or so, co-ownership largely operated on the asked for an increase in allocation. I am in the basis of housing association grant, and it was slightly paradoxical position that, compared with building up a huge amount of reserves, which were my colleagues in ODPM—where a host of just sitting there and not being used for anything. authorities are queuing up to demand reductions in Since 1998, we reduced the funding for co- their housing allocation—I have nearly every ownership to encourage them to use their own authority queuing up to ask for an increase. That is receipts. We are now starting to see that the use of partly within numbers but also, as colleagues are those receipts means that—with regard to the probably aware, I have recently put out a participants who were facilitated by the use of co- consultation paper about single-unit developments ownership receipt money—all the receipts they get in rural areas, which is a subject of particular when that participant moves out goes back to co- interest in the west of Northern Ireland. There are ownership. Therefore, we are now finding that some very strong views on both sides of the while our funding is reduced, it is using more and argument: some wanting to repopulate rural areas more of its own money to supplement its and also, particularly, keeping family units living development. close to each other; but there is also concern about Mr Crothers: I think that it is also worth making the the provision of services and also about the impact point that, to date, co-ownership has not had to on landscape. That is another aspect of how we are turn anyone away from their door. It is demand-led going to meet housing need. Clearly, within private and, so far, they have been able to meet that owner-occupied there is substantial housing need, demand. as is evidenced by the very substantial increase in Chairman: We do share the concerns of those house prices over recent years. involved in co-ownership though: that the demand is far greater than the support they are able to give. Q388 Chairman: So our targets for new build are They have asked why support is decreasing rather quite clear and easy to see—1,500, 1,300? than increasing at a time of demand. However, we Mr Spellar: For the social housing sector, yes. do take the answer you give, Mr Burns.

Q389 Chairman: In co-ownership we are saying Q391 Reverend Smyth: On the question of demand- that we could do a bit more, but there is no real led, both in social housing and co-ownership, is it targetsetastohowmuchmorewecoulddowith. not true that the demand can be dowsed, if I may Mr Spellar: Yes. Since its inception, co-ownership use that word, because the availability is not there? has supported about 18,000 participants to enter Peoplewouldliketogotocertainareas,butthere the property market and over 13,000 of those have is no point putting their name down for it because moved into full home ownership. It is therefore not there is no availability of housing in those areas an insignificant factor. I will pass the ball briefly and, if the housing is there, there is no demand. Is along the table to one or other of my colleagues, that not a problem? Can I first ask you to deal with who can give me the current figure. that one, when you are dealing with “demand-led”? Mr Burns: First of all, just to reiterate what the Mr Spellar: As I think I indicated earlier, one of the Minister has said. As regards co-ownership, and hidden costs of housing in Northern Ireland, like indeed house sales, it can be quite diYcult to assess some other public services, is that we can have targets for those, because they are very much vacant dwellings in some areas but, because of demand-led and therefore subject to quite a degree prevailing local circumstances—either because of of fluctuation, depending on issues such as interest diYculties there or because these are rates. So, whilst we make an annual provision to predominantly of one community or another— facilitate co-ownership based on previous years’ there can be some mismatch occurring within that. activity levels, we have flexibility to react to change We do try to address that, and indeed are still re- as and when this takes place. In recent times, we housing a considerable number of people. There is have found ourselves bidding in-year for additional also the expanding housing association sector, money to meet demand for co-ownership, but that which is also taking on a considerable number of is a relatively new phenomenon. In the past, we new tenants. Northern Ireland Affairs Committee: Evidence Ev 175

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns

Q392 Reverend Smyth: We have set targets. Over the terms of utilising the stock that we have and, equally last number of years, the targets have not been met. important, ensuring that tenants, and indeed other Have we actually got into catch-up time, or have we residents, who have bought their houses on these left that behind and are just trying to meet the new estates have a decent life. It is therefore partly about targets? housing management and also about quality of life. Mr Spellar: If we are talking about new build, in the With regard to the Review of Public Administration, first couple of years the housing associations it is one of the questions that is being answered by exceeded that. Then there was a bit of a dip and, last political parties and others. We have not yet come to year, it was very close—I think within about 50 or a view because, as you know, my colleague Ian so—to target. However, there is a deeper problem Pearson, who is the Minister responsible for the associated there. One of the reasons why they were process of reform of public administration, is not successful in the first couple of years was because of only receiving evidence from a whole range of existing plans and, even more importantly, an organisations but is also engaging in dialogue with existing land bank. Of course it is much easier for the the various political parties. It would be premature Housing Executive to assemble and to plan for a to indicate how we would see the role of any land bank than individual housing associations: not restructured local authorities within housing—your least because they were also constrained by in-year being fully aware of the history of all of this. There expenditure, which therefore meant that their will certainly be varied opinions, and I am not even diYculty of assembling sites in advance of yet sure of where the weight of opinion will lie in this. construction became more intense. We are You also mentioned the various other agencies addressing that and are providing both support and involved, Chairman, two of which I am responsible funding for it. I hope that will mean that we are able for: not only DSD but also DRD. I think that there not only to smooth out diYculties but also to achieve is a reasonable degree of visibility between the our targets in terms of construction. objectives of these organisations; but inevitably I accept that there will not always be exact coherence. Q393 Chairman: We all like to talk of joined-up Perhaps I may give an example which we touched on government— earlier, namely the figure of anticipated social Mr Spellar: We talk of little else! housing build. The Housing Executive can identify targets in terms of possible need in order to achieve balance but, as with all departments, and as with Q394 Chairman: Many of the comments that have here in GB, we would have to be looking at the been made to us in respect of housing policy point to finances available. We can say, “This is our desired confusion sometimes as to where responsibility may target”, but, in any particular year, what are the or may not lie. Indeed, Mr Burns, when you gave priorities of government as a whole in terms of evidence to us on behalf of DSD, you told us that financing between hospitals, schools, and social “...inmanyrespectstheissue of housing supply housing? That, in many ways, reflects the dilemmas and what figures there should be is outside of our and the processes which we see here. While there hands”. We have the DSD, the DoE, the DRD, may be some inconsistencies, I am not sure that it is DFP, the Housing Executive involved, although unique or such a significant problem. they cannot build, and so then you bring in the Chairman: You move us along nicely, Minister, to housing associations. We also have the Review of questions on new build targets. Public Administration, launched in June 2002, which promised us that there would be a continual review of arrangements for accountability and Q395 Mr Pound: I do not know if you have administration, and that they would further ideas as anticipated it, but you have certainly answered many to how reform could be achieved. Do you believe of the questions I was going to ask—which either that there is an opportunity for the RPA to look at shows a complete lack of imagination on my part or more joined-up structures for policy setting, great political cunning on yours. planning, and management of housing? Mr Spellar: You have never been accused of lack of Mr Spellar: Yes, and can I also say there is another imagination, Stephen! area that we need to look at in terms of joined-up government? It relates to what I was saying in one of Q396 Mr Pound: Can we clarify one issue? Mr my earlier replies about estates—by the way, not a Crothers referred to the Northern Ireland Housing phenomenon unique to Northern Ireland— Executive as being the “sole arbiter of housing need becoming much harder to let, because of tenant in Northern Ireland”. Why, therefore, the behaviour or, in the circumstances of Northern downshifting of the target from 1,750 in the current Ireland, the behaviour of paramilitary groups. year to 1,300? Therefore, the engagement of Housing Executive, Mr Spellar: The New Stock Model indicated an police, Social Services Boards in Northern Ireland, annual requirement of about 1,500 units overall in and the agencies of justice, becomes quite a Northern Ireland. As I said earlier, there was significant factor. That is why, for example, therefore a feeling that, in order to deal with some of introductory tenancies have been brought across to these imbalances of demand between areas and Northern Ireland and why the Housing Executive estates, a flexibility figure of 250 was required. What will be one of the partner agencies in Anti-Social I also said was that—partly aVected by the fact that Behaviour Orders, which we have laid before the construction inflation, as everywhere, has been House. These can have quite a significant impact in moving ahead of the general rate of inflation and Ev 176 Northern Ireland Affairs Committee: Evidence

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns also driven by the rise in house prices, and land their future land bank and their ability therefore to prices have gone up quite significantly—eVectively plan and balance their work. As a result of that, we we currently only have funding for 1,300. That is have been undertaking some work to make sure that precisely why we may need to look for an additional those housing associations are able to have a sensible bid. Those are the three figures and those are the forward programme. reasons lying behind what, as I said earlier, could be seen as a perceived inconsistency, but which I think Q401 Mr Pound: But, overall, you are confident in is reasonably coherent and also not unrelated to the the capacity of the housing association movement to sorts of decisions that have to be made elsewhere by deliver against the targets? local authorities, or indeed by central government. Mr Spellar: As I said, last year they were very close to target. They seem to be moving well this year. We Q397 Mr Pound: I can quite understand the financial do want the Housing Executive to be engaged, but imperatives there and I anticipated that was the at the same time we also need the department to be answer. It is primarily not a recasting of housing engaged. There is a potential diYculty with housing need per se, but a recasting of the realities of associations as to whether they perceive the Housing financial life. Executive as having a degree of conflict of interest in Mr Spellar: Yes, but it is absolutely right that this, because of course they are still very much, agencies, and indeed departments, that are tasked overwhelmingly and dominantly, the major social with specific roles should focus on those roles and, landlord in Northern Ireland. That is a dynamic within those parameters, within their guidelines, tension, but we should recognise that it is there and should make their best informed judgment. That we need to make sure that all sides feel that they are then has to be balanced out across government by an being treated fairly. assessment of priorities. Q402 Mr Pound: It has been suggested by your Q398 Mr Pound: You mentioned the situation in oYcials that any shortfalls in the new build housing associations, RSLs and new build. Are you programme will be due to the problems of the confident in the ability and capacity of the housing programme rather than the funding. Do you share association movement to deliver against the this view? demands that you place on it? Mr Spellar: I am not entirely sure. In a moment I will Mr Spellar: Yes, I think that they have been doing invite the oYcials to come in to defend or to explain reasonably well on that. I also, I hope, identified what they said on that. I did point out one or two what we saw as one of the constraints on their physical diYculties, which I think that we have operations, which was the need to work within overcome. I did also say that currently we were year—particularly the diYculty of assembling land funded to the tune of about 1,300 and that is part of and then moving on to build, and therefore the role further negotiations. I am not sure whether you are that the Housing Executive can play with them in implying by gestures that Mr Crothers was the assembling land for a rolling programme. I think oYcial, who may wish to clarify. that was one of the constraints they were suVering. I hope that we have addressed it, but we will obviously Q403 Mr Pound: Indeed so, Minister. have to keep a close watch on it to see if there are Y Mr Crothers: If I recall correctly, I think what I said further di culties and further decisions that we will was that any problems would be funding-related as need to make. opposed to programme-related; that the diYculty would be that we simply would not have suYcient Q399 Mr Pound: What about the role of the funds to enable us to meet our target of 1,500—as Northern Ireland Housing Executive in the indeed is the case this year. I said that simply because oversight situation, particularly following the we have now put in place, as the Minister has said, a review? Would you recommend a wider involvement whole raft of measures to address problems of of NIHE in that area? delivery, including the advance purchase of land—a Mr Spellar: A wider involvement in what sense? facility whereby housing associations can acquire land in advance, and that thereby facilitates the Q400 Mr Pound: The oversight of the whole new programme as and when it comes on stream. That build programme. has been a major diYculty and one of the major Mr Spellar: I think that there needs to be very strong obstacles that housing associations have engagement between the Housing Executive and the encountered to date. Could I just backtrack slightly housing associations, not least because there are and say that, whilst the Housing Executive has a certain strategic issues which historically the major role to play, there are other partners involved Housing Executive has been well placed to here. There is the department and housing undertake. The great advantage the housing associations, and it is a marriage of all three. I would associations bring is in being able to lever in that have to say that all three work very closely together. additional private sector finance. There is also some It is not as if the Housing Executive are acting very good work being done in terms of housing independently. They are an NDPB; they are management by those associations. So that is fine. responsible, through the department, to the However, there is undoubtedly a diYculty regarding Minister. We do work very closely, with the sole land assembly, which is also the situation with objective of trying to achieve our targets and to private sector housebuilders. A key issue for them is deliver social housing in Northern Ireland. Northern Ireland Affairs Committee: Evidence Ev 177

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns

Mr Spellar: I hope that Mr Crothers meant that it Mr Burns: Yes. was a partnership of three. Marriages of three persons might be indicating a dramatic departure in Q407 Mr Pound: My final question is this. What government policy! about if there was a consortium of housing associations? Could they operate semi- independently, or would it still be very much with Q404 Mr Pound: Probably illegal in most parts of the overview of the Executive? the UK but compulsory in Utah, I believe! Paddy Mr Spellar: I think that they would do it in co- McIntyre, when he was giving evidence, referred to operation because, as I was saying earlier, what you the issue of land identification, which you have need is visibility of the various parties’ operations. touched on, and was suggesting that the Housing However, if a group of housing associations felt that Executive should have a greater role in relation to they could put a package together, that would be land identification. Has any consideration been utilising their skills and getting to the critical mass that would be able to undertake such a measure. given to this? Mr Spellar: We have created a new facility to allow housing associations to acquire land in advance. To Q408 Mr Luke: I have one or two questions to do an extent, we are also over-programming on that, in with the Housing Executive, but you asked for the expectation that one or two of those will not, for clarification from the previous questioner, Minister, one reason or another, come to fruition. If they all on what he meant by oversight of the new build did, of course, we would then have to look at slowing programme. Given that there has been a shortfall on down parts of that programme. I think that we are targets and that some comments made in evidence to reasonably confident that this is starting to deal with this Committee indicate that the housing Y associations in Northern Ireland are too small what I fully acknowledge was a di culty that the V housing associations were running into. I think that e ectively to hit the targets that you set them, are we would like to see that bed in a bit. you now ruling out that any of them will turn over new build programmes to the Housing Executive? Mr Spellar: What exactly do you mean by “too small” in that context? Q405 Mr Pound: You talked about land banking. I cannot remember what the German word is for Q409 Mr Luke: Points have been made about a when you actually assemble packages of land. There consortium and examples were taken from some of is a word which is in quite common usage for land the organisations involved with housing assembly for future development. Who would have associations. The Northern Ireland housing oversight of that, or would it be co-operation associations seem to fall more into the category of between RSLs or HAs? Scottish housing associations, which are primarily Mr Burns: In that situation, if it was an area where based on a co-operative basis and are very small. it was diYcult to put land together, it would be the What we are seeing in Scotland is that many of them role of the Housing Executive to identify land are now being taken over by larger English housing particularly in areas where there is a housing need associations—to name two, Home and Sanctuary. and diYculty in obtaining sites. The Housing Some of the evidence we have taken in Northern Executive, using its expertise in specific areas—and Ireland seems to indicate that the targets which have it has a good in-depth knowledge of the situation on been set have been ambitious and the housing the ground in a lot of areas—would identify associations involved do not have the ability to potential sites and then build up parcels of land that deliver. would be suitable for development. There are areas Mr Spellar: I think that it depends. In some cases where it has land of its own and there is no need for there are niche housing associations that serve a social housing. In areas like that, it can sometimes particular need and provide a local service. In other package land together under a developer’s brief and cases I think that the housing associations then encourage private developers to come in and themselves have recognised this and a number of provide private housing on it. Indeed, in some them have amalgamated. I am scratching my head to situations they would get commercial developers to remember the name of the oYce I opened. I think provide commercial development, if there were more that it was down in Reverend Smyth’s constituency. of a pressing need for that. In Newry, for instance, It was the Belfast Community Housing Association, there were a number of blocks of flats where there where a number of housing associations had was no demand for them any more and no need for gravitated. You might therefore be able to argue that social housing in that particular area. The Housing it had reached a critical mass in terms of reaching a Executive demolished the flats. They have now wider area. If you then come on to the question of parcelled together that land under a commercial the role that they play in new build as opposed to developer’s brief, and they will then sell that to the housing management, and the relationship that has commercial sector. to the Housing Executive, to some extent we inherited a policy on new build. Back in 1996, the housing policy review suggested that the Housing Executive would take over responsibility, the Q406 Mr Pound: Is this predominantly an urban oversight, for the new build programme. However, phenomenon, in terms of this bundling together? the then Minister for Social Development in that Ev 178 Northern Ireland Affairs Committee: Evidence

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns devolved administration took a decision not to Mr Spellar: As I said, I am engaged in discussion pursue that recommendation because of concerns with other departments, but I am slightly about potential conflicts of interest—as I was constrained in announcing a timescale on it, because indicating, namely one, indeed the major social we are not entirely in control of that. housing landlord, eVectively having oversight and control over the others. Notwithstanding that, Q412 Chairman: One of the themes of this inquiry equally I do not think that we should underestimate has been that there have been several reports, studies the co-operation that exists between them. A further and planning guidance that have not been delivered factor that would come in with regard to new build within the timescale that was suggested or promised. is, as I was saying earlier, the ratio of private sector We just reiterate the need, if possible, for that to be money levered in by housing associations. The as soon as possible. greater the role of the Housing Executive in new Mr Spellar: I take that point on board, Chairman. build—and there are some advantages, as I was outlining, particularly in developing a rolling Q413 Reverend Smyth: Can we look at the House programme—at the same time that would clearly be Sales Scheme. There has recently been a date falling on to public sector borrowing. announced for that proposal, so that we can at least deal with something that is before us. What policy objectives are the revisions designed to achieve? Q410 Mr Luke: Could we turn briefly, moving from Mr Spellar: Essentially, we have looked at that and new build and the Northern Ireland Housing what we want to do is recognise the desire of a Executive, to the management of social housing in Y number of people to move into home ownership, but Northern Ireland? Your o cials have responded to also to look at the balance between that and the the recent HACAS Chapman Hendy report by interests of those who are on housing waiting lists or saying that they do not see a move from the status who will be on housing waiting lists in the future— quo in the actual management of social housing to the sort of issue that we were discussing earlier about deal with the Northern Ireland housing stock. That the availability of social housing, and the availability seems to fly in the face of what is happening both of social housing in areas into which people would north and south of the border, where there have been want to move. Therefore we need to get that balance. major transfers to other organisations. What are the We have looked at changes that have taken place in main conclusions—and this may be a question to Great Britain. We have put out the consultation your oYcials—that we can draw at this early stage document. The fixed date which we put there was from the HACAS Chapman Hendy report? that applications received after the date of the Mr Spellar: We have received the report. We are publication of the document would be considered in involved in discussions with other departments on the light of the outcome of the decisions arising from that report. Once we are through that, I will be quite that consultation. That does not mean that people happy to make that available. I hesitate to say cannot apply, but it does mean that, with eVect from “published”, because I think that what we will that date, the terms under which they will buy will be probably do is put it on to the website; but certainly under whatever is the future scheme. to put that into the public domain. As you rightly identified, there are a range of options. We, as the Q414 Reverend Smyth: What estimate has been government department, have not yet decided on made of the possible impact of the proposed changes our preference within those options. That is why we in terms of house sales and housing finance? are discussing with other departments. It would be Mr Spellar: In terms of housing finance we have to a little premature of me to indicate a preference, but assume that there is a possibility that there could equally I want to give the Committee the assurance perhaps be a temporary decline in sales. On the other that we will put the report into the public domain hand, both from Housing Executive properties and and we will also be making public our response and from housing association properties, there would be our conclusions. a smaller payout from the housing funds in respect of each property. Quite frankly, we are not able to give a fine calculation as to how those two forces will Q411 Chairman: Forgive me, Minister, for asking balance out in terms of housing finance, but we the obvious question. Could you put any dates to recognise that there is a possible decline on one side both your publication of the report and your and also a possible increase in income on the other. decision-making? Mr Spellar: No, not immediately, but equally I do Q415 Reverend Smyth: On what basis and evidence, not want to hang about with it either. for example, have the proposals been made to extend Mr Burns: Needless to say, there will also be a read- the qualifying period for discount from two to five across to the Review of Public Administration. If years and reduce the maximum discount from there are any suggestions of change to the Housing £34,000 to £24,000? Executive, it would be premature if our department Mr Spellar: Which is, of course, still in advance of were to recommend something like that, as that that which prevails in England. Essentially it was, could be seen to be influencing or indeed pre- again, to look at the question of getting the balance empting the outcome of the Review of Public right between the interests of existing tenants, or Administration. So we need to take account of that existing tenants who wished to buy, the interests of as well. those who were on the housing waiting list, and also Northern Ireland Affairs Committee: Evidence Ev 179

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns looking at the general funding that would be renting privately ensure that the private rented available to housing. It is equally right to look at the market plays a positive role in meeting housing level and conditions of discount that were available need? in England compared with those in Northern Mr Spellar: I think that it has been playing an Ireland. The indication I have had is that there has increasing role, but at the same time we are also been a fair degree of support for this. I am not saying concerned about the standards, the fitness of that it was universal or unanimous, but a fair degree property, and also the management of these of support for these proposals—because I think that properties. It is certainly true to say, for example, people are seeing that we have tried to strike a fair that promoting and supporting the private rented balance between those various interests. sector has been successful in the North Belfast Housing Strategy in raising standards in management and provision. At the same time we Q416 Reverend Smyth: Certainly there were those of also have to recognise that, from the point of view of us who felt that you were overgenerous compared public finance, we have to be looking at the amount with other issues at that time, but that might have of money that is spent on housing benefit in this been done as a carrot to stimulate the market at an sector, and we also have to look at questions of anti- earlier stage. social behaviour. Up till now, some of the diYculties Mr Spellar: But the market is pretty strong now and that have been experienced have been on properties we do have to look at the number of people who are that are private rented, whether they were previously in housing need. privately owned properties or indeed whether they were previously Housing Executive properties Q417 Reverend Smyth: Can I address the possible within estates, where the tenants are causing a impact of the policy on the development of problem on the estates. Again, with the Anti-Social alternative schemes which could be directed to those Behaviour Orders the powers of the Housing who are likely to be squeezed out of the revised Executive, or the engagement of the Housing House Sales Scheme? When there is a change in Executive, will not be just in its own properties or policy, it does have an add-on eVect. While you said indeed those of housing associations, but can also be earlier that you could not actually balance the land on their estates. This can be for the benefit of the and so on, it reminded me of the warning that you community and of other tenants. There is therefore do not actually start building a tower until you know very definitely a role for private sector rented you have the money to complete it—or a king does housing. We need to be looking at standards, but we not go to war unless he has the facilities to wage it also need to be looking at community safety and successfully. Is it an open-ended commitment? Will good order. it have an impact upon others in an adverse way? Mr Spellar: I think that it is only right that, when one Q420 Reverend Smyth: That is to be welcomed, V announces a change like this, e ectively, at that because there is always the possibility of ex- particular moment, the changes apply for the future. Northern Ireland Housing Executive stock sold to Not by direct comparison but certainly by analogy, the tenant and sold on to the private sector. They do I am reminded of a previous Chancellor of the not normally follow through with the same degree of Exchequer who announced a change to the oversight as the public sector has done. In that mortgage tax relief but postponed it until the July of connection, is there any evidence to suggest that that year—which led to that huge house price boom housing benefit is supporting high-quality private at that time, which then led to substantial periods of rented sector accommodation at the expense of decline and also to very considerable problems of good-quality public sector accommodation, or even negative equity. I therefore think that it is fairer all the reverse: supporting poor private sector V round to make a clean break and say, “With e ect accommodation at the expense of good-quality from this date on which we have made the public sector accommodation? announcement of policy then, once we have resolved Mr Spellar: There is quite a movement backwards what that policy is, this will be the policy that will and forwards, and there is some evidence of tenants apply”. Frankly, I think that is fairer. Also, it does leaving social housing to enter private sector not encourage people to jump into decisions which accommodation. Some of that will also be they might, on balance, want to reflect on over a stimulated by crackdowns on anti-social behaviour longer period of time. in housing association and Housing Executive properties. That is why I referred to the need to keep Q418 Reverend Smyth: I am not referring to the folly control of that sort of behaviour within the private or otherwise of a previous Chancellor, but he rented sectors as well. By the way, this is not a learned by his mistakes and the country suVered as problem unique to Northern Ireland. Colleagues well. around the table probably experience similar Mr Spellar: We learned by his mistakes at the problems in England, Wales and Scotland—that same time! these are, much more broadly, problems on estates. However, we are doing some work to look at that and also to look at the relationship between the Q419 Reverend Smyth: If I may deal with the private private rented sector and the social security system. sector for a moment, how will the proposals set out We will also be doing some case studies on it. I will in the recently published strategic framework on be taking a keen interest, and I will be happy and Ev 180 Northern Ireland Affairs Committee: Evidence

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns indeed keen to share that with the Committee in the working on Planning Policy Statement 12. That is future. The other area we have to look at is the extent seen as the mechanism for delivering aVordable to which housing benefits to private rented housing in the future. They are still working on that. accommodation is firming up, buoying up or over- There is a bit of diYculty between the Department stimulating the private sector market as well. I am for Regional Development and the Department for talking about the house price levels and the extent to the Environment, because it will be the department which that might be underpinning it. I think that we ultimately that will have to have the operational will need to be examining that—which ties in with responsibility for the policies that DRD has in the original basis of your question. PPS12. But we and the Housing Executive are both working together with DRD in order to try to ensure that, when PPS12 is finalised, it has an appropriate Q421 Reverend Smyth: I certainly welcome the V realisation that we are the same sort of people. mechanism in it—to deliver more land for a ordable Sometimes we think that Northern Ireland is and social housing. diVerent from everywhere else, but it is a reflection of the whole nation in that sense. There is one Q423 Mr Luke: Much has been made of the PPS12 diVerence, of course. It has been suggested that in and I know there has been a delay in this. Do you not areas such as protection-for-tenancy deposit feel that the failure to deliver it so far will have a schemes, and the use of a housing health and safety negative eVect on the delivery of social and rating system, the Northern Ireland legislation is aVordable housing? weak compared to that introduced in England and Mr Burns: Needless to say, we in our department Wales. What consideration has been given to would like to see PPS12 out as quickly as possible, strengthening the legislation in Northern Ireland in because we do see it as a facilitator in helping to these areas? deliver aVordable housing. I cannot say anything Mr Spellar: We do not have any immediate plans to more, other than that we are working with the DRD adopt the system, I have to say. We are currently in order to try to make sure that they can meet their monitoring the situation in England. We will make timescale on it. an evaluation of it. In the interim, however, the Housing Executive has been asked to carry out a Q424 Mr Luke: There has also been this question of number of pilot exercises to determine the potential the delay in delivering, or the further slippage in impact of the system on the grants budget. That is on delivering, the area plan programme, which many the housing, health and safety rating system. On the people see as a very useful tool. tenancy deposit schemes, at present two schemes are Mr Spellar: You mean the Belfast area plan? operated by the voluntary sector provide assistance for homeless people and people accommodated in Q425 Mr Luke: Yes. Is that also causing you hostels, to enable them to obtain housing in the concerns? Is that acceptable delay? private rented sector by acting as guarantors. Mr Spellar: My colleague, the DoE Minister, is However, there are no plans to introduce legislation committed to producing the plan in the late autumn, in this area at the moment. but I think that we have to recognise some of the complexities. There is a high level of objections, as Q422 Mr Luke: Moving to the planning side, what you might imagine. It covers about 700,000 people. diYculties have been identified in relation with the It is six district councils and it is 38% of Northern use of the planning system? For example, Ireland’s population. It is not an insignificant application of Article 40 to encourage or require the undertaking. It covers a well developed area, and delivery of suYcient numbers of aVordable and one in which there is a considerable number of social housing in Northern Ireland? already established interests. It is one which will Mr Spellar: I will pass this to one of the oYcials. inevitably create quite a bit of controversy and Mr Burns: We cannot necessarily speak for The attention. However, we are moving on with it and we Planning Service, because it belongs to a diVerent do hope to produce that in the autumn. department. Let us just say that the planning system—indeed, the very concept of having a Q426 Mr Luke: This may be a question for another planning system—will have an impact on department, but is there a risk that developments in aVordability and house availability. Any system that planning policy might reduce the availability of restricts or places restrictions on where a aVordable housing for first-time buyers and thus development can take place, how large or how small increase the demand for social housing that development can be, or the levels of density programmes? there can be within that development, will always Mr Spellar: That is a danger with planning policies have an impact on aVordability. The Planning anyway, depending on what priority is given; also, Service, and the Department for Regional quite simply, how much land is available for housing Development that determine planning policy, takes and therefore whether more expensive housing can account of the impact of any proposals it may have tend to bid up the prices for that housing. It is one on aVordability, but it also has to look at the wider to which we are very much alert. You will remember picture—the impact of development on the that, earlier in my evidence, I was referring to the environment and on other such issues—and there requests from a whole number of local authorities to will be times when these two will conflict. The increase the allocation of land for housing, because Department for Regional Development is currently they recognised that pressures on land were leading Northern Ireland Affairs Committee: Evidence Ev 181

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns to rising prices, and that was feeding through to the takes the lead in implementing a code for sustainable house price market. They were concerned about the building when it will be developed—but obviously in ability of their communities to sustain growth and, consultation with other departments. at the same time, the ability of youngsters to stay in the area in which they had grown up. So I think there Q430 Mark Tami: The code for sustainable building is a recognition of that, and these planning policies has been adopted in GB. Are you looking at just are obviously an intrinsic part of it. moving that across, or do you think there is something that needs to be diVerent? Q427 Chairman: Minister, you kindly reminded us Mr Spellar: I understand that the Sustainable earlier that your responsibilities cover both DSD Buildings Task Group’s report was launched on and DRD. Is this one of those areas where we could 17 May this year. It recommended the production of ask you to use your influence or to help to get an a unified code for sustainable building, to bring earlier release of PPS12? Certainly throughout this together best practice and to raise standards, and inquiry there have been many comments saying, “It also the formation of a joint venture body to develop will be very beneficial, but we want it soon”. and establish that code. Mr Spellar: I will consult the Minister responsible. Q431 Mark Tami: Are you looking at extending the Q428 Reverend Smyth: I have always hesitated to Lifetime Home Standard to the private sector in deal with constituency issues in these circumstances, Northern Ireland? If you are, what impact do you but twice the Minister has referred to south Belfast. think that will have? We have a situation, in an area where there is a cry Mr Spellar: This sounds like “pass the parcel”, does for social housing, where the Housing Executive it not? This is the responsibility of the Department of owns the land, and where we understand that a Finance and Personnel, who have responsibility for rebuild, replacing high-rise flats—which were a building regulations. What they intend to do is source of problems—would not be blocking out the review the building regulations for Northern Ireland other Housing Executive houses. Despite those in 2005. I am advised that consideration of the undertakings, there is a planning scheme going Lifetime Home Standard will be included in this. ahead which is going up to eight storeys. They have Our department has supported and stimulated managed to placate one resident by bringing it down debate in this area, organising and contributing to to a lower level to just, as we say in Ulster, the conferences on this subject. Frankly, we would “forenest” house. Surely where there is a welcome the extension of the Lifetime Home requirement for aVordable housing, the Housing Standard to private sector housing. Executive should not necessarily be selling it oV to private developers to make a packet out of it, Q432 Mark Tami: Taking on board the potential for irrespective of what happens to people? the need for adaptations, which could have quite Mr Spellar: This is a slightly vexed situation, as an impact? Reverend Smyth knows. Indeed, the first developer Mr Spellar: I think that the code itself would be for actually fell out of the scheme after he had started it. new build or for major refurbishment. I look for I have had representations, as he is aware, from the reassurance on that. residents and the local MLA. He will also know that Mr Crothers: New build in this instance? I have been instrumental in arranging a meeting between the Housing Executive and the MLA to Q433 Mark Tami: Yes. deal with this, and I think that there are further Mr Crothers: All our social housing is built to discussions taking place. I think that it is probably Lifetime Home Standard. We are certainly better that I do not go much beyond that in this encouraging the private sector to go down that response, but this matter has been very forcibly route, because we are aware of the cost of adapting a drawn to my attention, and indeed we have been new build house to Lifetime Home Standard is only getting discussions to take place to try to resolve between £200 to £500 or £600. them. Mr Spellar: When it is built in the initial stages. It is Reverend Smyth: I would have got my knuckles the retro-fitting costs on existing buildings which can rapped if I had not raised it! be quite substantial. That is why we introduced it, I think in 2001, as the basic standard for all the new Q429 Mark Tami: Turning to standards, who is developments to be undertaken by housing responsible for setting standards for new build social associations; but we also believe that it would be of housing, particularly in respect of issues such as benefit for private sector housing. sustainability and energy eYciency? Mr Spellar: We have been monitoring the work of Q434 Chairman: It would certainly be a huge boost the Sustainable Buildings Task Group, and they to Northern Ireland’s disabled community, who have not yet developed a code for that. In Northern raised this with us very recently. At the moment, Ireland it is the Department of the Environment’s they see the choices as being restricted, and an Environmental Policy Division that is tasked with extension of the Lifetime Home Standard to the developing policy and drafting legislation on a private sector would give them far more confidence broad range of environmental issues, and which in being able to have the same choice. Ev 182 Northern Ireland Affairs Committee: Evidence

30 June 2004 Rt Hon John Spellar MP, Mr David Crothers and Mr Jerome Burns

Mr Spellar: I think it is also worth putting on record, led me to issue the consultation paper about building Chairman, that it is estimated that about £30 million in the countryside, single unit developments, was a year is spent annually on adapting property in precisely an easement on regulations in the Republic Northern Ireland—reinforcing the point that retro- of Ireland, which undoubtedly also has an echo in fitting, as in almost every other form of building, is Northern Ireland. While it has been limited in terms far more expensive than designing in at the initial of cross-border movement of local markets construction stage. interacting, equally it would be fair to say that this has been developing. I was in an oYce in Derry on Q435 Chairman: We have moved on very well, but I Monday and one of the senior oYcials there was still have one question that I want to put to you, saying that they had recently moved, and they were Minister. That is in respect of interaction in the a quarter of a mile into Donegal. Particularly as housing market between Northern Ireland and the transport, notably road transport, is improving, I Republic. The Committee was recently in Derry and the overspill for Derry, as you would expect, now think that we are seeing a greater increase, and that takes in quite a large area of County Donegal. What we are likely to see a greater increase—but I would consideration has been given to that interaction of not want to overemphasise it either. the housing markets between Northern Ireland and Chairman: Minister, the division bell has come at a the Republic, and what impact will it have on your time when we had just completed our questions. So policy? may I, on behalf of the Committee, thank you for Mr Spellar: It is certainly true to say that in both answering our questions this afternoon. I am sure jurisdictions there has been a considerable increase that the answers will be very helpful to us in in house prices. For example, one of the issues that compiling our final report.

APPENDIX 1

Memorandum submitted by The Equality Commission for Northern Ireland

1. Introduction 1.1 The Equality Commission (“the Commission”) is an independent body, established under the Northern Ireland Act 1998, with responsibility for the legislation on equal pay, sex discrimination, disability discrimination, fair employment and treatment, race relations and the public sector statutory duty. The aim of the Commission is to value and promote respect for diversity, eliminate unlawful discrimination, and achieve equality of opportunity for all. 1.2 The Commission welcomes the opportunity to provide evidence to the Northern Ireland AVairs Committee on housing, given its importance to the life of many of those who are socially excluded. We made substantive comments on the Housing (NI) Order 2003 and although not exclusively related to the issues identified in your letter, the Commission feels that they merit investigation. 1.3 The Commission’s views relate to Traveller accommodation, grants, house sales, introductory tenancies and nuisance or annoyance to neighbours.

2. Traveller Accommodation 2.1 The Commission welcomes the move to transfer existing Traveller sites to the responsibility of the Northern Ireland Housing Executive. However, almost all of the serviced sites inherited from local councils by the NIHE as a result of the Housing Order (NI) 2003 were built to substandard specifications and many of these are, in addition, badly run down. 2.2 None of the initiatives announced by government to date have delivered a comprehensive programme of accommodation for Travellers: — The Final Report of the DOE Working Party on Site Provision for Travelling People in Northern Ireland (1984) recommended the completion of a Northern Ireland wide programme of sites by 31 March 1987—nearly 17 years on this has still not been achieved. — The DOE Regional Development Strategy for the Provision of Sites for Travellers over the period 1994–2000 set 10 targets for refurbishment or new build, but not one of these was subsequently met, although over £1,000,000 was wasted on the development and subsequent demolition (prior to completion) of the Monagh Wood site by Belfast City Council. — The small-scale pilot scheme announced by Lord Dubs is still incomplete five years on. 2.3 We also have a number of other concerns over Traveller accommodation, such as: — DSD and NIHE should develop, with the full participation of Travellers and their representatives’ clear proposals for the development of a Northern Ireland wide programme of accommodation, including transit sites. Northern Ireland Affairs Committee: Evidence Ev 183

— It should be clearly stated that resources will be made available to complete within a reasonable specified timescale eg five years, a programme of accommodation based on the existing population of Irish Travellers. — A regular review (every five years) of the adequacy of accommodation provision should be undertaken to address further need and plans drawn up and implemented. — We are also concerned that the recent DSD proposals, based on legislation already in existence in GB and Ireland to control unauthorised camping will negatively impact on the Traveller community.

3. Grants 3.1 The Commission has a number of recommendations on the issue of grants, both mandatory and discretionary: — It is essential to ensure that Travellers are not at a disadvantage by specifying that the term “dwelling” and thus eligibility for grants, extends to Travellers. — We welcome the retention of the mandatory disabled facilities grant, but have concerns that the assessment process by Occupational Therapy is long and cumbersome. These delays negatively impact on disabled people and their families and mean that people are living in accommodation that is unfit and in many instances unsafe for the occupants.

4. House Sales 4.1 The Commission accepts that tenants have a statutory right to buy their homes and that this includes Registered Housing Association tenants. It is also essential that disabled people have the same rights as anyone else to purchase their home. We are however concerned that replacement of stock for disabled people is available and that specialist accommodation is replaced in order to maintain levels of suitable social rented accommodation for those who need it.

5. Introductory Tenancies 5.1 The Commission is concerned that the introduction of “introductory tenancies” will have a negative impact on the ability of specific groups to remain in the social housing sector and that basic rights of new tenants are eroded in this introductory period. 5.2 New tenants are more likely to be female given the rise in lone parent households in Northern Ireland, therefore impacting adversely on this vulnerable group. 5.3 Also the request for a review of a landlord’s decision for possession of a dwelling let under the introductory scheme must be made by the tenant within 14 days from the date of service of notice. This is problematic for a number of reasons: — Without easy access to advice services some groups would find it diYcult to meet this time limit, for example those in rural areas. — People who are not fluent in English and may not be quickly aware of the outcome of the notice. — Can the information be provided within the time frame in accessible formats, ie Braille, audio etc. — People with mental ill health may not recognise the urgency of the situation. — Those with learning disabilities are less likely to understand what is happening and take the necessary course of action. 5.4 The Commission is also concerned that regulations as to entitlement to representation at the review hearing may breach the Human Rights Act by failure to provide representation. 5.5 The Commission believes that this needs to be backed up by a statutory code of practice for all social landlords and the Courts to ensure that the grounds for repossession are followed comprehensively and accurately. This will ensure that certain groups are not excluded from attaining tenancies.

6. Nuisance and Annoyance 6.1 A court may grant an order for repossession in the case of a secure tenancy to a social landlord on the grounds of amongst others, nuisance or annoyance. This makes it possible for a landlord to evict a tenant because she/he, anyone living with her/him or a visitor is guilty of behaviour that is “likely to cause oVence”. 6.2 The Commission is concerned that this may impact negatively on a number of groups who may have no influence over the conduct of a third party for example, women, and the elderly or in the case of disability, certain behaviour being misunderstood. Ev 184 Northern Ireland Affairs Committee: Evidence

6.3 The Housing (NI) Order 2003 provides for injunctions to be available in circumstances where there has been “conduct causing or likely to cause a nuisance or annoyance”. The Commission is concerned to ensure that the terms “nuisance” and/or “annoyance” will adequately cover racist harassment and abuse. The Order needs to make it clear that racist harassment or abuse constitutes “ill-treatment” and takes account of the definition of a “racist incident” as contained in the Macpherson report.1 6.4 The Commission believes that consideration needs to be given for a statutory code of practice in this respect. It is of vital importance that a person has the right to an independent review or hearing. Furthermore all social landlords should have written policies to deal with anti-social behaviour. 16 March 2004

APPENDIX 2

Memorandum submitted by Tom Woolley, Professor of Architecture, Queens University Belfast “The Sub committee terms of reference are to examine the eVectiveness of current housing provision in Northern Ireland with particular emphasis on social housing. The sub committee will wish to look into the following issues: — The rising demand for social housing — The continuing decline in the supply of social housing; and — The quality of the housing stock 1. In this submission I will focus largely on issues of sustainability and its importance in terms of considering the quality of the housing stock. 2. This is defined in terms of the environmental impact of new development, the options for upgrading the existing stock, opportunities to improve energy eYciency, the need to reduce damaging pollution and to improve the health of housing occupants. 3. I argue that issues of sustainability are frequently overlooked in Northern Ireland and standards and best practice have fallen well behind the rest of the UK and Europe. 4. EVorts to meet the growing demand for social housing and to improve the quality of the housing stock must be done in a way that improves the environmental performance and enhances the lives of occupiers.

Research at Queens University on Sustainable Building This submission is underpinned by a number of years research work at Queens University and in association with the construction industry to investigate ways of building which are more environmentally friendly and sustainable. This has led to the publication of the “Green Building Handbook” (Volumes 1 and 2) which has become a standard reference source. While these books are being published in Chinese, have been used to develop housing policies in places as far afield as Hong Kong, Brazil, Mexico and Australia, it has probably had least impact where it was compiled and edited—Northern Ireland! It has not been easy to achieve funding for research in this sector though we have been successful in being financed by the EPSRC and private sector partners though these have all been in England. However we have recently been successful in obtaining finance from the UK Energy Saving Trust to do a feasibility study into a green pilot project for the Rural Housing Association. This will be a small social housing scheme in Donagh in County Fermanagh which will be the first full researched scheme in the province to demonstrate best practice in green design and low energy standards, using innovative low impact construction methods. Queens University is in the process of establishing a multi-disciplinary Centre for Sustainability and this will provide a vehicle for research in this sector. We would like an opportunity to present this proposal (even though it is still in development) to the committee as we feel it can set a benchmark for other social housing in Northern Ireland. The scheme will go way beyond existing building regulations standards and will use a range of innovative technologies. This will include an innovative form of construction using hemp for the walls. While hemp and hydraulic lime construction could provide an answer to many of the questions about sustainable house construction and also provide a much needed source of income to Northern Ireland farmers we have had not one penny of support from public sources in Northern Ireland and UK Government research bodies have tumed down applications. Nearly all of the finance for work on this date has come from the Irish Republic! We would also like to present a proposal to the committee for a mixed use low energy development in Northern Ireland, which will have over 80 houses and will provide opportunities for residents to work from or near home. The scheme will also be mixed tenure combining social housing with housing for sale. Again this will be the first time that such an innovative project will be built in Northern Ireland.

1 Macpherson, W. (1999) The Stephen Lawrence Inquiry. Report of an Inquiry by Sir William Macpherson of Cluny. London, TSO. Northern Ireland Affairs Committee: Evidence Ev 185

Linking Planning Policy and Sustainable Housing At present planning policy documents in Northern Ireland do not refer to the need to encourage sustainability and energy eYciency. However in England many local planning authorities are now introducing environmental standards for housing development. This is enforced through Section 106 agreements or local criteria. Several London Boroughs have now adopted sustainability criteria for planning applications and in some rural areas, Sustainable Building Trusts have been established (eg Somerset and Cornwall) to develop sustainable housing schemes. This does not even appear to be on the agenda for planning policy in Northern Ireland and will thus hold back the possibility of the development of better quality of housing in the province. I was a member of a working group, established by the Town and Country Planning Association, which has published a report with the World Wide Fund for Nature (WWF) about ways in which planning legislation can be reformed to raise and enforce environmental standards in housing. (www.tcpa.org). This report has been well received by Government departments in Westminster. These ideas need to be introduced and discussed in Northern Ireland.

The Need for Demonstration Projects Northern Ireland urgently needs demonstration projects of best practice which will provide a model for how to do low energy, environmentally friendly low impact housing. This has to be the way forward for social housing. The committee should note that there are only three projects in Northern Ireland in the UK database of sustainable housing schemes, one of which is not housing! (www.sustainablehomes.co.uk)

The Need for More “Joined-up”Thinking about Housing Standards,Quality,Energy Efficiency and Sustainability Currently the agencies responsible for social housing (and other housing) do not have a strong enough focus on issues of energy eYciency and sustainability. The Department of Social Development has taken certain steps by requiring Housings Associations to use the Design Advice scheme (see more below) and has recently announced a pilot green housing initiative, but without providing additional finance as an incentive for this. Many of the other agencies in Government concerned with Energy eYciency have not combined to promote energy eYciency and sustainability in housing. An urgent review is required of the various agencies concerned with these issues and how their work might be better co-ordinated. The Northern Ireland Housing Executive has supported the “Integer” project and other initiatives by the BRE and DTI in England but has provided almost no support to the local centres of excellence in this area at Queens University and the University of Ulster. It is necessary to question whether the Northern Ireland funds which have flowed from the NIHE across the water have been good use of public money as there appears to have been very little benefit in Northern Ireland. The Northern Ireland Federation of Housing Associations is keen to develop this area and supported a sustainable homes initiative with European money a few years ago, but does not have suYcient resources to deal with these issues today.

The Need for Training and Education There will be a major and significant need for training and education of housing association professionals, architects and others in the construction industry as higher energy standards are introduced through major changes in the Northern Ireland Building regulations. Even greater impact will be felt through European Directives such as the Energy Performance of Buildings Directive. Current industry practices are 20–30 years out of date and very few people know how to design and build energy eYcient, healthy, air tight houses using environmentally friendly materials. Investment in training and education will be needed to bring the construction industry up to date.

The Need for Greater Emphasis on Environmentally Responsible Materials Current practice in Northern Ireland puts undue emphasis on the use of environmentally damaging uPVC windows and doors, even though these will soon be banned in Europe. It is almost impossible to obtain commercial quantities of timber which are certified by the Forest Stewardship Council and the main timbers merchants are controlled by multi national companies which import timber from the USA and the Baltic rather than using local timber. The Forest Service is not doing enough to promote the growing of and use of local structural and joinery timber. Ev 186 Northern Ireland Affairs Committee: Evidence

The Design Advice towards Greener Buildings Scheme Many of these issues are brought to the attention of housing associations through the “Design Advice Towards Greener Buildings Scheme” which is part of the Government’s Action Energy Programme, financed through the Carbon Trust. Each new housing association development has to have a “DA” report as part of the government funding process administered by the DSD. However most housing associations only ask for the DA report, as the schemes are about to start on site by which time it is far too late to take on board the recommendations. This green design advice should be commissioned at the inception of projects. Unfortunately an increasing number of housing associations use Design and Build packages from developer builders as the main form of procurement of social and special needs housing and this makes the incorporation of environmental best practice extremely diYcult. Because these schemes are initiated by private developers the architects are employed by them and the design and specification standards are not ideal. We are creating a problem for the future by commissioning buildings which are designed to make as much profit for the developer and provide the lowest possible standards for the housing association and occupants. This form of procurement should be questioned and severely restricted. Greater use of powers to vest land for social housing should be exercised rather than allowing developers with land banks to dictate where such social housing should go. Publicly owned land should be used to promote demonstration of best practice projects.

Eco-Homes

In England the Eco Homes Rating scheme, developed by the Building Research Establishment has been successful in promoting better standards of energy eYciency and sustainability. While the DSD has introduced a multiplier to the TCI for social housing projects, based on Eco-Homes, very few housing associations have taken this up. There is only one qualified Eco-Homes assessor in Northern Ireland as opposed to many hundreds in Great Britain. It is important to make Eco Homes rating compulsory for social housing in Northern Ireland as soon as possible.

Eco-Renovation

Perhaps the most important issue in terms of social housing is how to upgrade existing dwellings so that they can provide a good standard of energy eYciency, without damaging the health of the occupants. While there are programmes to introduce insulation into some houses, the way this is being done is open to question. InsuYcient research has been done to evaluate the success and eVectiveness of current insulation grant schemes. There are still significant problems of fuel poverty in Northern Ireland and more should be done to develop a strategy to tackle this. Obtaining grants for additional insulation present old people with a jungle of information and agencies, which are hard for them to understand. A review of this is urgently needed.

Technical Solutions for Retrofitting Energy Efficiency Measures

It is also necessary to question whether current insulation installation measures are technically correct. In some situations they can lead to problems of health and dampness in buildings if ventilation is not also carefully managed. There is insuYcient research into technical measures for upgrading existing properties. In particular greater use of external insulation using environmentally friendly materials should be considered. Comparisons should be made between diVerent solutions to establish which are most eVective. The experience of building control, NHBC and other bodies should be drawn upon for this work.

Support for Green Building Technology in Northern Ireland

InsuYcient priority is given by Invest Northem Ireland and related agencies to supporting technological innovation in the construction sector. Far too much emphasis is placed on electronics and IT sector, whereas Northern Ireland has great potential to develop innovative technologies which will lead to greater energy eYciency and sustainability in buildings and housing. Unfortunately companies wishing to develop these technologies are forced to go elsewhere because of the lack of Government backing. There is a tendency in the construction industry in Northern Ireland to rely on outdated and ineYcient concrete based forms of construction, whereas in Scotland 50% of new housing (at least) is now timber framed. New technologies using solid walls and higher standards of insulation are available but no-one is encouraging their use here. Northern Ireland Affairs Committee: Evidence Ev 187

The Need for More Research The importance of research work must be emphasised here. The two Universities in Northern Ireland are competing with researchers throughout the UK and we can be turned down for funding if the proposal seems to have too strong a regional focus. However conditions in Northern Ireland are diVerent and it is important for multi disciplinary research to be camed out on housing and related technical issues. At the moment there are almost no regional funds available to support this. Such research would help to target public money more eVectively in terms of upgrading and improving the quality of the provision. We suVer seriously from a brain drain of expertise. Students come through post-graduate courses in civil, environmental engineering and architecture who are keen to do research and development work in improving housing in the province, but as there is little funding to support PhD level research and Masters courses, we lose these people to Great Britain and the Irish Republic. Far more needs to be done to retain and encourage these young people to find careers in Northern Ireland.

In Conclusion — Housing standards in Northern Ireland are lower than in the rest of the UK. Energy eYciency standards will be lower for some time until the building regulations are changed. — Greener standards through the use of “Eco-Homes” are being largely ignored in Northern Ireland and this will also reinforce lower standards. — Planning policies are not promoting greener practices in the same way that they are in England. — Innovative energy eYcient building technologies are not being developed in Northern Ireland because agencies such as Invest do not see this as a priority area. — There is insuYcient co-ordination between the various government and other agencies concerned with energy eYciency. — There is insuYcient funding for research and development, which has a focus on Northern Ireland and insuYcient support for post-graduate work in Universities. — While these issues may not appear to be central to the remit of the Housing Inquiry, if they are not addressed, housing standards will continue to worsen in the province. March 2004

APPENDIX 3

Memorandum submitted by the Northern Ireland Housing Council

The Northern Ireland Housing Council as you may know was established in 1971 by the same statute as the Northern Ireland Housing Executive and has sought to maintain a local government influence in the development and implementation of fair and equitable housing policies and strategies across Northern Ireland through its advisory, consultative and representational roles. Members have developed a constructive and productive working relationship with the Northern Ireland Housing Executive as the strategic regional housing authority. The Housing Council notes the organisation’s significant contribution to other key government objectives through its programme activity. Members support the need for a sustained level of investment in housing in Northern Ireland to meet specific housing, and wider governmental objectives, and to protect existing investment. The Northern Ireland Housing Council values the significant contribution of the Housing Association movement to specialist housing provision and special needs groups in particular. Concerns have been noted however in relation to the delivery of the newbuild programme. On the basis that the Sub-Committee will receive a comprehensive submission from others involved in the provision of housing services in Northern Ireland, the Housing Council will concentrate its submission on the key areas of concern debated by Members since the suspension of the Northern Ireland Assembly in October 2002.

Demand for Social Housing — Members, are concerned at the current levels of Housing stress including Homelessness. The Housing Executive’s Homelessness Review and Strategy addressing these matters is welcomed. — It is agreed that there exists a need for greater inter agency working to deal with Homelessness issues including matters relating to mental health etc. — Concern exists that the Housing Selection Scheme may provide opportunities for applicants to “jump the queue” even where they have been rendered homeless due to their own anti social behaviour. The additional powers now available to the social landlords are welcomed. Ev 188 Northern Ireland Affairs Committee: Evidence

— Members have recorded concern at the geographical concentration of housing need, particularly in the greater Belfast area. The Housing strategies in place to tackle this in areas such as North Belfast, Greater Shankill and West Belfast are welcomed. — The Housing Council is concerned at the continued growth in single person households (accounting for 44% of the overall social housing waiting list) set beside the level of accommodation available for use by single people. There is a need for creative solutions to address this demand. — Members are concerned that potential housing applicants in rural areas do not come forward readily and welcome the Housing Executive’s programme to identify latent demand. It is noted that this programme has already resulted in the planning of 12 new social housing schemes and the registration of over 100 new households, in rural locations. — The Housing Council has noted the concentration of “diYcult to let” properties in certain locations and the progress being made through estate strategies to turn around these diYcult areas eg Model Farm Estate, Downpatrick. The development of these estate strategies to tackle the underlying issues should be encouraged. — It is noted that while the issue of AVordability is not as great in Northern Ireland as in Dublin or London, there appear to be hotspots which may impact on social housing demand. The research to be undertaken by the Housing Executive on aVordability, particularly in relation to first time buyers, is welcomed.

Supply of Social Housing — It is noted that housing need in the social sector is in the main addressed through around 8,000 relets each year. This figure however has proved insuYcient to meet overall housing stress. — The contribution made to housing supply through the social newbuild programme is noted and the Housing Council welcomes the eVorts made by the Department for Social Development to improve the delivery mechanisms. Members remain concerned that actual social newbuild delivery is out of sync with the Housing Executive’s stated need of 1,750 new social units per year. Greater progress would be welcomed on the management and streamlining of the newbuild delivery network. The Housing Council has met with Ministers and Department for Social Development oYcials to express concerns about the newbuild programme and awaits the outcomes of the measures put in place by the Department for Social Development and the Northern Ireland Housing Executive. This is an area which the Housing Council will continue to scrutinise closely. — The Housing Council appreciates the eVect the House Sales Scheme has in increasing low cost home ownership in Northern Ireland and understands that the majority of houses sold would not be available for social renting, in other words, the vast majority of tenants who purchase their homes remain in the properties as owner occupiers. There is a need however to maintain a balance between House Sales and aVordability and an appropriate supply of social housing for waiting list applicants. Members note the need for greater housing choice eg relets, low cost home ownership and a well managed private sector. Also noted is the capacity of are wide strategies to increase housing supply social housing to rent and low cost home ownership. — The growing Private Rented market can make a significant contribution to the reduction of waiting lists. Members have noted the Housing Executive’s proposed Private Rented Sector strategy and the adverse eVect Housing Benefit has on driving up rents in the sector. While outside the scope of the legislative framework, Members note the influence Housing Benefit legislation could have on ensuring better housing standards in the private sector by providing leverage to seek improvements. — The Housing Council looks forward to the implementation of the Government’s Neighbourhood Renewal Strategy and the positive contribution it could have in tackling deprivation throughout Northern Ireland.

Quality of Housing Stock — Members support the need for adequate funding for improving and maintaining existing housing stock. It is noted that 3,300 properties fall into unfitness each year and that almost one third of all dwellings failed the Decent Homes Standard applicable in England against thermal comfort criteria. The wide use of solid fuel in Northern Ireland means higher heating costs for residents. The need for sustained investment is underscored by these statistics and the Housing Council would welcome the opportunity to take part in the debate as to whether the Decent Homes Standards should apply in Northern Ireland. — The Housing Executive’s new grants scheme is noted and Members welcome the impact grants have had in bringing properties back into use in the private sector. — Members note the unacceptable timescales for carrying out occupational therapist assessments for housing adaptations and the impact this has on the ability of applicants to remain in their own homes longer, or to remain in the owner/occupied sector. The Housing Council also accepts the budgetary implications resulting from improvements in the delivery of this service. Northern Ireland Affairs Committee: Evidence Ev 189

— The Housing Council welcomes the work of the Housing Executive on heating system replacements to its stock and the opportunities for improvements within the private sector provided by the Department for Social Development’s Warm Homes Scheme. In summary, the Northern Ireland Housing Council recognises and values the contribution and commitment of the Housing Executive and the Housing Association movement to meeting the housing needs of the people of Northern Ireland. Members support fully the provision of sustained and adequate funding to enable the appropriate solutions to Northern Ireland’s housing challenges. The Housing Council, like the Department for Social Development Committee, has sought to tailor housing policies and strategies, to meet needs in Northern Ireland rather than to replicate those implemented elsewhere and will continue to do so in partnership with the statutory authorities. It is noted that some of the issues raised may be the subject of substantial . discussion in their own right and the Housing Council is available to provide further evidence and to participate in further debate if required. Members look forward to receiving details of your findings and recommendations. 18 March 2004

APPENDIX 4

Memorandum submitted by the Alliance Party of Northern Ireland

Current Housing Policy Environment In no areas of life is segregation the formal policy of the state. However, in Northern Ireland segregation is the de facto practice on the ground, with respect to education, housing, and the delivery of services and lifestyles, often with the informal acquiescence of the state. Yet there is substantial majority support for mixed or shared facilities. As recorded in the NI Life and Times surveys, the strongest desire is for mixed workplaces, followed by mixed housing. In the public sector, housing has become much more segregated. Some 80% of estates are regarded as segregated, in that less than 10% of residents are regarded as coming from a perceived diVerent section of the community. To date, the NI Housing Executive has not done enough to create or maintain mixed housing estates. They have provided houses with insuYcient concern for the promotion of sharing, and have presided over the further development of segregation. Alliance believes that the promotion and maintenance of mixed housing should become an explicit objective of the NI Housing Executive. While incentives can be put in place to encourage people to live together, real progress depends upon removing the underlying causes that force people to live apart and undermine mixed areas. At one level, this involves addressing the mindset of “them” and “us” that pushes people to live with “their own kind”, and at another level, tackling the sectarian violence and intimidation that creates fear in existing mixed communities, and deters others from moving into them. Fundamentally, people need to have a sense of security to live with confidence in mixed areas, and know that they will be supported in their choice by society. Alliance addresses these issues in our policy paper, “Justice and the Rule of Law” (see http:// www.allianceparty.org/papers.asp). At all levels, but particularly, in public sector estates, segregation is marked out by the use of flags, murals, kerbstone painting, and other emblems; many of these are paramilitary in nature. They convey the message that certain areas are the exclusive preserve of one or other side of the community rather than common civic space, and that others are not welcome. As a consequence, previously mixed areas can become segregated, as some people leave. With the undercurrent of paramilitarism and associated intimidation or actual violence, it is not realistic to expect local communities to ask for action from public authorities or to take action themselves. At present, when someone is intimidated, the response of the Housing Executive is to move the victim, rather than to work with other agencies to address the causes of the intimidation. A contrast is provided by the practice of dealing with racial intimidation in public housing estates in Great Britain. Alliance advocates the creation of an Inter-Departmental Working Group to facilitate an inter-agency approach to the problems of intimidation in public housing. Alliance believes that the Housing Executive and Roads Service should remove flags, murals and graYti on their property, in compliance with their requirements under Equality Legislation, in particular the Fair Employment and Treatment Order (NI) 1998, and in order to help to create and maintain neutral living environments. Alliance will hold them to account for their failure in this regard. Similar symbols of a racial nature would not be tolerated in Great Britain, and indeed are removed by the responsible authorities. Alliance will resist attempts to push the responsibility for dealing with such problems back onto local communities. This gives local strongmen inordinate influence at the expense of legitimate voices. Alliance welcomes the first convictions for the possession of paramilitary flags. Four individuals were convicted in Bangor Magistrate’s Court on 2 March 2004. The accused were charged and convicted under Article 13(1) of the Terrorism Act (2002). Under this legislation, “A person in a public place commits an Ev 190 Northern Ireland Affairs Committee: Evidence

oVence if he wears an item of clothing, or wears, carries or displays an article in such a way or in such circumstances as to arouse reasonable suspicion that he is a member or supporter of a proscribed organisation.” The charges related to the erection of a vast number of LVF Flags in the Loughview Estate in Holywood in summer 2003. It is one of few mixed public housing areas in Northern Ireland. There was a strong local reaction to the erection of a range of flags. On two occasions, the police intervened to help remove flags, and subsequently made a number of arrests. It is important that authorities are seen to be taking a stand and that common civic space is defended. Alliance sees these convictions as a means of providing a strong message that paramilitaries cannot turn housing estates into ghettoes with impunity. With this precedent set, this successful action must not be the last, but the first of many to tackle this scourge.

Rising Demand for Social Housing Alliance notes the following data from the Housing Executive report, “The Northern Ireland Housing Market: Review and Perspectives, 2004–07”:

Waiting lists and housing stress — The waiting list for social housing, including the number of applicants in housing stress, has continued to grow, with 26,700 applicants of which 13,237 are in housing stress (an increase of 6% on the previous year) (p 5). There is a real demand for social housing in Northern Ireland. It is particularly concerning that 50% of applicants are in housing stress. Both the waiting list and housing stress figures are on an upward trend.

Barriers — There is a geographical concentration of housing need, with two-thirds of the growth in housing stress coming from 12 Housing Executive Districts in and around Belfast; there are interrelated factors encouraging geographic concentration in the Belfast region (p 10): — Job opportunities (Belfast is the main hub of the Northern Ireland economy). —DiYculty in obtaining land for new low cost/aVordable housing developments. — Inadequate supply of new social housing in the Belfast region. — Rising level of house prices in and around Belfast. We especially note the aspect of the diYculty in obtaining land for social housing developments. Here, Alliance proposes further co-operation/integration with other relevant Departments. We would recommend the Northern Ireland Select Committee investigate possible remedies. For example, Alliance supports the use and enforcement of Area Plans to increase the supply of social housing, whereby a designated part of available land or a percentage of new-build housing could be allocated by mandate. There are global examples of using the private housing development market to realise the goals and needs of social housing in society.

Homelessness — A 16% increase in the number of households presenting as homeless (16,426) during 2002–03 (p 5). — Links with physical and mental health services should be developed to ensure the health needs of homeless people are addressed (p 43). — Links with local voluntary and community support organisations should be developed to assist resettled older residents to become part of their local community (p 43). — The problem of public transport for rural homeless people (p 44). — Need for outreach support services for homelessness caused by domestic violence (p 43). The examples of older homelessness, rural homelessness, and homelessness as a result of domestic violence show the need for inter-agency cooperation. Alliance would encourage further development of an integrated and interdependent approach to tackling homelessness in Northern Ireland. We are keen to learn the Select Committee’s opinion and recommendations on this matter.

Continuing Decline in the Supply of Social Housing Alliance notes the following data from the Housing Executive report, “The Northern Ireland Housing Market: Review and Perspectives, 2004–07” (p 5): — The programme of providing new social housing is not keeping pace with rising levels of housing stress. Northern Ireland Affairs Committee: Evidence Ev 191

— The programme in 2001–03 delivered one-half of the required 1,500 new homes per annum estimated under the Net Stock Model. — The Housing Executive estimates 1,750 dwelling are required each year. — The programme over the next five years will need to increase by more than 2,000 dwellings. According to a DSD-commissioned study, land availability, acquisition and price, planning, and long lead times were identified as significant factors aVecting the delivery of new build. (This is currently being addressed by a tripartite group of the DSD, Housing Executive, and Federation of Housing Associations.) As per our comments above, these are crucial factors in meeting the demand of social housing. Alliance would implore the Northern Ireland Select Committee to expedite the work of the tripartite group in resolving the delivery of new build, and act on agreed recommendations.

Quality of Housing Stock

Alliance notes the following data from the Housing Executive report, “The Northern Ireland Housing Market: Review and Perspectives, 2004–07” (p 17): — NI Housing Executive owns and manages 110,000 dwellings (March 2003), but figure is declining each year by 6,000 because of house sales and demolitions.

There is an apparent irony that the shortage in supply of social housing stock is partly due to the success of selling dwellings to eligible occupiers (ie releasing it to the private housing market). Alliances does not wish to detract from this scheme, but only point out that an adequate plan to provide suYcient numbers of dwellings must be in place and exercised, lest a crisis is caused by continuing house sales and demolitions. — Condition of stock is good, with number of dwellings failing the Fitness Standard is minimal. — Some 10,000 Housing Executive dwellings need to be brought up to modern day standards, and a backlog of £150 million. — Adaptations for disabled and elderly requires £20 million annually. — Over 70,000 Housing Executive dwellings failed the “Decent Home” standard (which is set to become the national benchmark of quality, based mainly on grounds of thermal comfort).

We do not concur that a 4.9% unfitness level is “minimal” (source: 2001 Northern Ireland House Condition Survey). This represents 31,600 homes, with 3,300 additional properties becoming unfit through disrepair every year. We acknowledge the improvement from 1996 (7.3%) and earlier, but the “Review and Perspectives” recent report itself highlights the backlog of repairs required. There is the imperative for the Department of Social Development as well as the Housing Executive to provide adequate quality housing stock, in addition to pure quantity.

Indeed, the “Decent Home” standard is higher, and only one-third of the Northern Ireland social housing stock achieved it. Alliance endorses the higher “Decent Home” standard as the appropriate indicator of good quality housing stock. Much of the failure in reaching this standard in Northern Ireland is due to inadequate “thermal comfort”. Here, there is an invariable link with energy eYciency, conservation, and fuel poverty.

Fuel Poverty

It is appalling that a third of households in Northern Ireland—203,000 in total—are in fuel poverty (ie spend more than 10% of their income to heat their home), in comparison to 9% of households in England. We acknowledge the Department of Social Development’s consultation paper, which was issued in October 2003. It is unfortunate that this consultation occurred during the election campaign for the Northern Ireland Assembly, which prevented us from providing a response.

Nevertheless, improving energy eYciency and conservation alone will not significantly reduce the high fuel poverty figures in Northern Ireland, where our wages are almost a fifth less and our electricity and fuel charges are 25% higher than in Great Britain. Indeed, these factors are important contributions on the debate underway about the reform of water and sewerage services in Northern Ireland. It is important for elected representatives and civil servants outside Northern Ireland to appreciate our particular circumstances, particularly when addressing matters that would otherwise be the responsibility of a devolved administration. 19 March 2004 Ev 192 Northern Ireland Affairs Committee: Evidence

APPENDIX 5

Memorandum submitted by the Housing Policy Review Group

THE EFFECTIVENESS OF CURRENT HOUSING PROVISION IN NORTHERN IRELAND, WITH PARTICULAR EMPHASIS ON SOCIAL HOUSING

1. The Rising Demand for Social Housing

Key Points — Increase in number of households in Northern Ireland: — 1991 Census: 530,369 households — 2001 Census: 626,717 households — This is influenced by: — Population growth (including increase in number of younger people and people living longer). — Lower household size due to marital/relationship breakdown and increase in number of single adult households. — Increase in property prices in the owner-occupier market. The average Northern Ireland house price in the third quarter of: — 1993 was £35,837 — 2003 was £94,028 (Source: Nationwide Building Society) — Traditionally low Private Rented Sector in Northern Ireland. — At 6.3%, unemployment remains relatively high in Northern Ireland. This is exacerbated by an increase in low-paid, fixed term contracts for the employed population. — Northern Ireland has a relatively high population who are dependent on benefits, for example: — 21% of all households are composed of retired people. — 14% of households are dependent on sickness or disability benefits. — 28.4% of the adult population is economically inactive. All of these factors have culminated in an increasing waiting list for social housing (in March, 2003, the number of households on the waiting list was over 40,000) and increasing trend in homelessness (during 2002–03, over 16,000 households presented as homeless to NIHE).

2. The Continuing Decline in the Supply of Social Housing

Key Points — Current calculation for social housing (net stock model) is too low. We welcome the work being undertaken to review this calculation. — Impact of house sales scheme. — Loss of stock through demolition or voids. Social housing voids within Northern Ireland tend to be located in community interface areas. — Processes including planning and approval for new build tend to be overly bureaucratic. This impacts on the ability to deliver on the target set by the net stock model. — Acquisition of land also impacts on the point above.

3. The Quality of Housing Stock

Key Points — Poor quality/unfit housing tends to be privately owned. — However, there is a need to increase TCI level of 1% add-on to meet lifetime home standards and to continue to improve on energy eYciency and community safety initiatives. 19 March 2004 Northern Ireland Affairs Committee: Evidence Ev 193

APPENDIX 6

Memorandum submitted by the World Wildlife Fund

Introduction WWF’s mission is to stop the degradation of the planet’s natural environment and to build a future in which humans live in harmony with nature by conserving the world’s biological diversity, ensuring that the use of renewable resources is sustainable and promoting the reduction of pollution and wasteful consumption. WWF believes that minimising the environmental impact of our homes is crucial in the pursuit of the wider attainment of sustainable development. The WWF One Million Sustainable Homes (OMSH) campaign aims to bring sustainable homes from the fringes of the housing sector to the mainstream. WWF is working with government, industry and consumers to ensure that one million sustainable homes are developed across the UK by 2012—both refurbished and new homes. WWF welcomes the Committee’s Inquiry into social housing and wishes to contribute specifically to the Committee’s consideration of the quality of housing stock.

The Need for Sustainable Homes WWF’s Living Planet Report 20022 revealed that since 1970, the world’s natural ecosystems have suVered serious decline. Its Living Planet Index records an average 37% reduction in the abundance of forest, freshwater and marine species. The same report compares the human consumption of natural resources with the earth’s biological capacity to regenerate them. This is known as our ecological footprint. The average global ecological footprint is 2.3 hectares per person. New research has recorded Northern Ireland’s ecological footprint3 as the highest in the UK, at 5.63 hectares pp. Simply expressed, this means that if everyone in the world consumed resources at the same level as we do in Northern Ireland, we would need three planets to support us. The majority of the existing NI housing stock has significant social and environmental impacts. In environmental terms, housing in the UK contributes around 27% of the total CO2 associated with energy use, and domestic energy use is projected to rise by 6% by 2010. It is therefore essential to reduce emissions from existing houses and from new homes. In social terms, this clearly has consequences for people who have diYculty in aVording to heat their homes properly. Despite a 13% improvement in the energy eYciency of NI’s housing stock since 1996, the 2001 House Condition Survey4 showed that 203,000 NI households (32% of the total) were still in Fuel Poverty, compared with 9% in England. Other significant impacts related to the construction and refurbishment of houses include: — the construction industry in the UK currently uses around 40 million cubic metres of timber every year, with a high proportion of this for housing. Much of this timber comes from forests around the world that are not managed in a sustainable way; — the widespread use of toxic chemicals in building materials, which can generate risks to the occupants and the environment; — quarrying to provide raw materials like aggregates; and — the profligate use of water in houses that are not designed with water eYciency in mind.

Improving Housing Conditions in NI The “Decent Homes” standard introduced by government in England in March 2002 does not apply in Northern Ireland. However, measured against the “Decent Homes” criteria, some 206,000 NI homes failed to meet the standard. Of the 110,000 dwellings owned by the NI Housing Executive (NIHE), the primary provider of social housing, over 64% failed to achieve the standard, almost all due to ineYcient heating systems. The Housing Executive has recognised the shortfall in the availability of social housing and estimates a need over the next five years to increase the building and replacement programme by over 2000 dwellings per year.5

2 http://www.panda.org/news—facts/publications/general/livingplanet/lpr02.cfm 3 http://www.northern-limits.com/reports/footprint—report—final.pdf 4 http://www.nihe.gov.uk/publications/reports/2001HCS.pdf 5 http://www.nihe.gov.uk/publications/news/HMR2004—2007.pdf Ev 194 Northern Ireland Affairs Committee: Evidence

The Housing Executive has committed itself to embrace the principles of the Egan Report6 which recommended that the main opportunities for improvements in house building performance exist in the social housing sector. WWF endorses this commitment and recommends that NIHE strives to demonstrate that it will place sustainable building at the heart of its construction and refurbishment programme.

ADefinition for Sustainable Homes At the outset of the OMSH campaign, WWF initiated a stakeholder dialogue to assess the barriers to mainstreaming sustainable homes. One of the principal barriers identified was a lack of consensus around the definition of sustainable homes. Through the consultation process, WWF found a general consensus that the Building Research Establishment’s (BRE) EcoHomes standard was a good starting point. While EcoHomes is not perfect, it does begin to address the fundamental impact of housing on the environment, and BRE is committed to developing and improving the standard over time. WWF supports the “Very Good” and “Excellent” standards as a good measure of new and refurbished homes which have significantly less impact on the environment. EcoHomes covers areas of energy, transport, pollution, materials, water, ecology and land use, health and well-being. WWF also supports BRE’s Sustainability Checklists for Developments which complements EcoHomes and considers the wider impacts of development such as the provision of local employment and facilities, the impact of infrastructure and community engagement. More information about both tools can be found at www.bre.co.uk/breeam. In England the Housing Corporation has committed to a minimum requirement of EcoHomes “Pass” for all new developments that it funds. This will rise to “Very Good” by 20067. WWF believes that the NHIE should commit to a similar requirement for all new build that it funds. One of the best known examples of sustainable homes in the UK is the Beddington Zero Energy Development (BedZED) project in Sutton. BedZED homes make sustainable living easy, attractive and aVordable through the provision of: — high density housing combined with high levels of amenity, green roof terraces and gardens and generous access to sunlight; —oYce accommodation to encourage local economic development and reduce the need for commuting; — energy eYcient design and renewable energy supply; — a “green transport plan” for residents and workers to reduce dependence on fossil fuels; — advanced IT connections and shared oYce facilities, making homeworking attractive; and — a mix of social, shared ownership and reasonably priced homes for sale. A recent WWF report, One Planet Living in the Thames Gateway8 has applied the lessons of the BedZED development to improve potential performance. The report demonstrated that for as little as a 1% extra build cost, house builders can deliver a 32% reduction in CO2 emissions, a 39% reduction in water usage and up to a 25% reduction in household waste. A 2003 US study researching the financial benefits of green design in 100 buildings around the USA calculated gains of up to $50–$70 per square foot9. The authors concluded that the total financial benefits of green buildings are over 10 times the average initial investment required to design and construct them. The average premium for the design and construction of the green buildings in the study was slightly less than 2%. The economic benefits of sustainable housing need not be confined to new buildings. English Heritage presented evidence to a public inquiry in Lancashire which demonstrated the viability of restoring Victorian terraced housing to modern standards. Their research showed that the likely maintenance bill over 30 years for a typical terraced home would be a minimum of £25,000 less than the cost of replacing it with a newly built home and maintaining that home over the same period.10 WWF is part-funding a feasibility study for a “One Planet Living Centre” in Northern Ireland. The study will be conducted by BioRegional, one of the partners of the BedZED eco-village. The development will form part of an international initiative to establish a network of such communities. Working with local stakeholders to ensure that the scheme matches local needs and aspirations, the development is intended to include up to 150 homes, together with workspace, outdoor leisure activities and aims to be free of private cars. It will also develop zero carbon and zero waste strategies, including the use of renewable energy and district heating systems.

6 http://www.dti.gov.uk/construction/rethink/report/index.htm 7 The case for sustainable development, Housing Corporation, May 2003 8 http://www.wwf.org.uk/filelibrary/pdf/thamesgateway.pdf 9 http://www.cap-e.com/ewebeditpro/items/O59F3481.pdf 10 http://www.greenfutures.org.uk/viewpoints Northern Ireland Affairs Committee: Evidence Ev 195

WWF Recommendations — The NIHE should lead by example and strive to demonstrate that it will place sustainability at the heart of its construction and refurbishment programme. It should integrate sustainability principles into all its investment decisions, including decisions about which developments to fund. — The NIHE should identify practical support measures to enable social housing providers to contribute to sustainable development, eg through training programmes. — In line with the Housing Corporation’s commitment in England, the NIHE should require minimum EcoHomes standards to be met for all new developments it funds, with progressive targets for future improvement. — The NIHE should use the whole life costing method for projects, accepting that those which may have a slightly higher initial cost will be cheaper for both residents (in terms of running costs) and maintenance over their useful life. — The NIHE should commit to bringing its existing stock up to a minimum of the Decent Homes standard or equivalent. It should also strive to bring existing stock up to EcoHomes standards over the longer term. This would ensure that residents in existing homes benefit from greater eYciency resulting in cheaper running costs and a healthier environment. 22 March 2004

APPENDIX 7

Memorandum submitted by the General Consumer Council Northern Ireland The General Consumer Council believes that it is necessary to ensure that all consumers have access to safe, good quality, aVordable housing. It is essential that a social housing strategy provides adequate housing at reasonable cost.

Rising Demand for Social Housing The Regional Development Strategy has identified that demand for all housing in Northern Ireland will need 10,000 homes to be built per year over the 25 year lifetime of the strategy. This will not be just to fulfill the growth in private sector/owner-occupied sector. Demographic and social trends in Northern Ireland would suggest that demand for social housing is likely to increase in the foreseeable future. It is therefore important that this is taken into account in the preparation of social housing strategies. There is an ongoing increase in single member households due to more younger people living alone alongside many older consumers living longer. There has been a significant increase in the number of one- person households in Northern Ireland over the past 10 years. The Continuous Household Survey shows that in 1983, twenty per cent (20%) of Northern Ireland households had one person living in them. In 2002–03 this had risen to 28%, over a quarter of all households. There has also been an increase in lone parents families account for 24% of all families with dependent children. While the population has stayed largely the same overall household size has fallen. The Continuous Household Survey 2002–03 shows that over the past 10 years the average number of persons per household has fallen from 3.14 persons in 1983, to 2.58 persons in 2002–03. These factors mean that additional demand is being placed on the overall housing market, including social housing provision. Alongside these factors, the Council is concerned that rising costs of home ownership in Northern Ireland may lead to the future inability of first-time buyers entering housing market due to increased mortgage costs. This in turn may lead to increased demands on the social housing sector as more consumers find themselves unable to enter the home ownership market due to rising costs. The Council believes that further research would be helpful to identify the potential projected need for social housing over next 30 years. Such research should take into account all possible factors that may impact on the demand for social housing. This would allow government in conjunction with the NIHE and other social housing providers to identify targets for of supply of homes, set plans to meet these expected needs and monitor their implementation.

Decline in Supply of Housing Stock While it is less important who builds or manages social housing it is likely to become more important in future years that safe, good quality social housing provision is available at rents aVordable to all. There is no doubt that the actual number of homes in the social housing sector has decreased in recent years. In 1991 there were 158,200 NIHE premises in Northern Ireland, 27.6% of the total housing stock. By 2001 this had fallen to 116,000, 17.9% of the housing stock. Ev 196 Northern Ireland Affairs Committee: Evidence

This can be partially put down to the increase in home ownership during the same period, which would have included many consumers buying their rented homes from NIHE. This has brought positives for those who now own their own homes but has led to a fall in the availability of social housing in Northern Ireland. On the other side Housing Associations have increased just slightly. Provision in this sector has grown from 10,000 dwellings (1.7% of housing) in 1991 to 17,900 dwellings (2.8%) in 2001. However, over the same period the private rented sector increased by 20,000 dwellings from 5% of the housing sector in 1991 to 7.6% 10 years later. Concern is that with increasing mortgages the cost of renting in the private sector may increase further which would have an impact on access to aVordable housing for all in that sector which may in turn placed increased pressure on social housing provision.

Quality of Housing Stock The Council welcomes the fact that the 2001 Northern Ireland House Condition Survey showed that just 3% of NIHE and 1% of Housing Association homes here were unfit. This compares well with 38% and 14% in the owner-occupier and private rented sectors respectively. However, when compared the Decent Homes Standard, which is used in England, 50% of NIHE homes failed along with 7% of Housing Association homes. The main reason for failure in these sectors was on the thermal comfort criterion used in the Decent Homes Standard. It is important that there are continued eVorts to deal with the underlying issues that caused such a high failure rate, particularly on thermal comfort factors. There also needs to be plans in place to deal with the quality of the social housing stock as its age increases. 22 March 2004

APPENDIX 8

Memorandum submitted by the Ulster Unionist Party

In 2004 our submission to the Northern Ireland AVairs Committee, sub-committee inquiry into “the provision of social housing” revisits the questions we posed two years ago. In recognising the important changes in the role of the Housing Executive from being a predominately landlord focused organisation to one which works in a wide variety of fields directly aVecting peoples lives and at the same time provides a strategic lead for housing in Northern Ireland. Nevertheless it is our belief that “particularly in the role, where peoples live are directly aVected” that the Housing Executive had been under performing. Since 2002, we have been monitoring the housing situation. Our most recent research points to little apparent change or improvement in 2004. What is of great concern to us is that if our findings are accurate then vulnerable members of our community are being disadvantaged and this is intolerable in the 21st century. We do not intend in our submission to produce pages upon pages of examples relating to underperformance. Rather we believe it more productive to identify the areas contributing to the scale of underperformance. To this end we will concentrate on highlighting key areas were “the provision of social housing fails to address the actual needs of people!” Where appropriate we will make constructive suggestions for consideration as ideas to improve the delivery of social housing provision. Today’s Housing Executive concentrates on assessing the housing need in order to influence the direction of the housing market. In that role it is protected from the role of the primary provider or builder of social housing. The function of provider rests with local housing associations and with the private development sector. We are concerned that the partnership between the Housing Executive and the local Housing Associations creates problems for the delivery of social housing. Dealing specifically with “the needs assessment” it seems extraordinary that the provider ie the Housing Association is required to seek permission from the Housing Executive to purchase a site. Therefore in terms of a policy the Housing Executive eVectively dictates “not a housing need but a housing economy!” Without a housing need being ratified by the Housing Executive, Housing Associations cannot provide new build social housing. In cases where public representation highlights an awareness of the need for additional social housing, too often the Housing Executive is an obstacle and a cause of frustration between the public, their elected representatives and the management representing the Housing Executive. A major problem therefore constantly arises when the Housing Executive attempt to bamboozle everyone else with the complexities of their precise criteria for assessing a housing need. Northern Ireland Affairs Committee: Evidence Ev 197

In its response to Planning Policy Statement 12 Housing in Settlements (PPS12) the Housing Executive state: We have completed development of our processes to implement the Planning Policy Statement on Housing in Settlements (PPS12), which will help inform strategic planning and development work for the future. Through these assessments we will be able to influence housing supply and work to promote aVordable housing where appropriate. However, also contained in its draft Corporate Plan 2004–07 and Business Plan 2004–05 the Housing Executive cites one of its core values to be “responsiveness to our customers needs”. Presumably this is to be reflected in the corporate objective, which states: “To work with Housing Associations, private developers, private landlords and other housing providers and interests to ensure aVordable housing choice across the range of tenure options.” Therefore in linking these two statements it should be evident that in striving to attain these objectives, one would expect that somewhere the Housing Executive would have included an awareness that their delivery of acting on social housing need has fallen below an acceptable standard. Regrettably such an awareness is seldom admitted. The fact that an organisation that reflects the core value of “openness” remains unable to be transparent about its criteria for assessing a housing need gives the impression of an organisation not totally competent in its own abilities. We would contend that the relationship between local Housing Associations and the Housing Executive reflects an uneasy partnership. The Regional Strategy has become outdated to the extent that there will be insuYcient land available for the adequate provision of social housing. Northern Ireland should look at the strategy being pursued by John Prescott MP to tackle the shortfall in aVordable housing in England. With the on-going District Area Plans covering up to 2015 currently underway, it would be advantageous for the provision of social housing and the supply of aVordable housing to be channelled through a 10% band of aVordable dwellings being available on new development sites of over 50 units. Not only would the developer make these available commercially, the Housing Associations could also avail of these dwellings. In this respect, we pose the question “how, without much land in stock and how, without new land being sought in the area plans, does the Housing Executive intend to address our social housing needs?” Providing “social housing” has an important impact on both the social economy and ordinary peoples sense of their worth in society. There are people such as the homeless and the unemployed, to whom the availability of aVordable housing is crucial. Then there are neighbourhoods being wrecked by anti-social behaviour. Added to these there are people caught in the poverty trap.

Homelessness According to the Simon Community, there are now nearly 23,000 people oYcially classed as homeless in Northern Ireland. A figure disputed by the Housing Executive as being excessive. Does it really matter, when there can be no disputing the fact that the incidence of homelessness in Northern Ireland is nearly twice that of England! The Simon Community state: “a major contributor to the higher level of homelessness in Northern Ireland is the lack of suitable available housing!” Factually they make the relevant point that only 9% of those who approached the Housing Executive last year did so because of intimidation. Our own research confirms findings, which significantly show that “long term unemployment” prevents people from owning their own home. This in turn creates a dependence on the provision of social housing. An availability of social housing which does not force people to move away from the local area they feel most comfortable in.

Anti-Social Behaviour The ineVective management of housing estates under the control of the Housing Executive has created many needless vacancies within good estates throughout Northern Ireland. EVectively, out of control anti- social behaviour has “blighted” the prospect of housing good tenants. Moreover potential tenants are penalised should they refuse the allocation of a house beside or close to others practicing anti-social behaviour. This cannot be fair! One of the successes of the Housing Executive has been the “sale of property” to tenants. However with the natural introduction of “pride in the home”, regrettably there has been an increase in anti-social behaviour, which contrasts directly with the pride in the estate dividend. Ev 198 Northern Ireland Affairs Committee: Evidence

The Housing Executive stand accused of introducing “known anti-social elements” into estates. A policy, which is not convincing if rehabilitation is the sole reason. A policy which has no eVective enforcement behind it once the damage is done and seldom has recourse for eviction. Tenants cannot be permitted to make the lives of their neighbours a misery and a constant threat. The Housing Executive should not be contributing to the misery of their tenants. As the Secretary of State for the Home Department, David Blunkett MP, said March 12, 2003, on tackling the scourge of anti-social behaviour; “Rights and responsibilities must go hand in hand. The White Paper and the legislation to follow aim to put in place support and help for those who are prepared to accept it and clear speedy and eVective enforcement when they are not.” So what can be achieved to improve the performance aimed at attaining a better provision of social housing? First dispense with the usual renditions of why things can’t be achieved ie lack of funding resources, unable to compete in the land market, the policies are restraints, the issue is too complex, there are no quick fixes, etc, etc. The best asset the Housing Executive has, but may not always recognise, is its staV. Ordinary people dealing with ordinary people in various extraordinary circumstances. People on the ground meeting people with problems. What can be more satisfying than helping a family, a pensioner or a single parent obtain the sanctuary of a roof over their head. We contend that the staV require urgent attention in coping with waiting lists. Here we list some suggestions which if introduced could well be beneficial to improving the delivery capacity of the staV and go a long way in ultimately addressing the housing needs of ordinary people. Perhaps there are no quick fixes! But surely things can be fixed quicker than we in the Ulster Unionist Party, the Housing Executive staV on the ground we have consulted and most importantly the people queuing for a better home consider to be the acceptable pace in high places.

Suggestions — Reduce the number of vacant properties by 50% over the next five years by making them fit for use. — Entice the private landlord sector to do likewise with their vacant properties by making it diYcult for them to allow properties to become derelict. (Such properties, once condemned unfit-for-use, should be vested by the Government for reconstruction by an approved local housing association. — Encourage area regeneration by providing more three-bedroom houses for young families, created by simultaneously providing single bedroom houses in the same location for those wishing to vacate a three-bedroom house for a single bedroom house. — Invest in rejuvenating brown field sites and also give them planning priority for social housing. — Reintroduce residential housing points and review the overall points scoring criteria. — Introduce a crisis waiting list scale ie hot—warm—tepid, as a reliable ready reckoner for constant watch on needs assessment. — Immediate re-assessment of social housing needs called for by the Minister allowing two weeks to have the information back from each district oYce on his desk. Reason to reduce waiting lists by between 15–25% depending on length of lists. — Plan to have in place within five years district complex settlements providing sheltered accommodation for the elderly through non-profit making co-operatives. — Develop a Homes Task Force for Northern Ireland similar to that chaired by Baroness Dean in Great Britain. — Encourage diverse partnerships within the remit of co-ownership housing. — Have land within local area plans specifically dedicated for use by housing associations. — Co-operate with socially conscious private developers willing to provide a reasonable percentage of homes for purchase by local Housing Associations on a mixed economy development site. — Establish a target of 10% of new development sites set aside for aVordable housing. — Commit David Blunkett MP, on extending antisocial behaviour measures to Northern Ireland. — Invest immediately in land purchase to demonstrate that the assessment of ordinary peoples needs really is being addressed. — Make reasonable allowances for refusals to move in near known antisocial behaviour neighbours. In this submission we have attempted to be constructively critical of those responsible for providing social housing. We hope that those ultimately responsible will pay attention. Northern Ireland Affairs Committee: Evidence Ev 199

We have covered aspects which are detrimental to those in our society. We have highlighted the disadvantages to those most vulnerable and therefore most likely to benefit from improved performances all round. We have also expressed our admiration for the staV on the ground and we have oVered some suggestions for consideration. However, we have deliberately left until now comment on another sector, that of people in poverty. 35% of our people aged 50–64 live in poverty 25% of our people aged 65–74 live in poverty 22% of our people aged 75 plus live in poverty Poor people cannot aVord housing—these statistics speak for themselves. 22 March 2004

APPENDIX 9

Memorandum submitted by Belfast City Council Introduction The Elected Members of Belfast City Council would like to thank the Northern Ireland AVairs Committee for the opportunity aVorded to them to respond to its Inquiry into Social Housing Provision in Northern Ireland. A special meeting of the Council’s Housing Liaison Committee, to which all Members of the Council were invited, was held in the City Hall on Tuesday, 16 March to formulate the Council’s response to the Inquiry. This Memorandum sets outs the expressed views of the Members of Belfast City Council insofar as they relate to the remit of the Committee’s Inquiry.

Remit of the AVairs Committee’s Inquiry The AVairs Committee proposes to address the eVectiveness of current housing provision in Northern Ireland with particular emphasis on social housing and would wish to address specifically the undernoted areas of concern: — the rising demand for social housing; — the continuing decline in the supply of social housing; and — the quality of housing stock.

The Rising Demand for Social Housing The Members of the Council have expressed serious concerns in respect of the rising demand throughout the City for social housing and would contend that, in many districts, demand is at crisis level. In 2003, the Northern Ireland Housing Executive reported a figure of 26,700 applicants on its Waiting Lists, of which, 13,500 were deemed to be in what is termed housing stress. The Council would point out that the geographical concentration of Waiting List applicants, together with a significant proportion of those deemed to be in housing stress, emanate from within the 12 Housing Executive Districts in the Greater Belfast Area.

Sociological Changes The Council would argue that the provision of social housing in Belfast has failed to keep pace with the changing sociological nature of Society. The demise within many communities of the traditional family unit is evidenced by the current rising demand for accommodation by single persons (44%), small families (26%) and older persons (19%). This is compounded by the fact that the vast majority of housing stock within Belfast was built in the post-war era to cater for the Nuclear Family model and development has not evolved suYciently to address the changes which have occurred. This change in the social structure has contributed also to the 16% increase—reported during 2002–03—in the number of applicants presenting themselves to the Executive as homeless.

Role of Landlords With the growth in demand for social housing, there has been an increasing reliance on private landlords to provide accommodation for applicants. This has been most evident within areas of North Belfast and in the University and Village districts of South Belfast. The Council, whilst acknowledging the significant and positive role which Landlords play in providing housing to individuals, particularly single persons, students and young persons, would maintain that this method of providing accommodation oVers no long-term solution to the housing problem. Indeed, some would argue that this lucrative practice benefits only those Ev 200 Northern Ireland Affairs Committee: Evidence

who own and let property. In addition, it negates the social responsibility which the statutory agencies have in providing proper community-based housing. A further consequence of this reliance on landlords is the significant growth in numbers of what are termed Houses of Multiple Occupancy. In many cases, these can be construed to be inappropriate to the character and amenity of established neighbourhoods as they do not promote or assist a sense of community or belonging.

Affordability Members of the Council have expressed concern also regarding the issue of aVordability of housing in Northern Ireland. In 2003, the Nationwide Building Society reported that the average house price in Northern Ireland stood at £90,265. This figure precludes many individuals, families, and first-time buyers from acquiring property and leaves them with no option but to apply for social housing, which impacts significantly upon the Housing Executive’s Waiting Lists. The Council feels that this issue could be addressed by Government imaginatively, through the introduction of either incentive schemes or grant assistance to enable those applicants who are currently “priced-out” of the housing market to purchase property.

Scarcity of Building Land The Council has concerns regarding the perceived shortage of suitable land within Belfast which can be acquired for the purposes of social housing. Since the mid-1990s, there has been increasing evidence in the City of private acquisition of development sites—a practice known as “land-banking”—which are then held by an investor until such times that an enhanced financial return on an initial investment can be realised. This is evidenced by the large swathes of land throughout the City which have lain undeveloped for many years. Such sites, apart from giving cause for serious concern due to the apparent housing shortage, have an adverse impact on the visual amenity of the City. Belfast, since the early 1970s, has seen a significant decline in its population. Many factors, including most significantly the Troubles, have seen the population of the City dispersed beyond its legislative Boundary into neighbouring Council areas. As a consequence, it could be argued that there is suYcient land available within Belfast to address its social housing problem.

Legislative Measures A number of Members of the Council have expressed the view that there is a need for Government to address the problem by introducing legislation similar to that enacted by the Republic of Ireland in its Planning and Development Act (2000). One of the key powers of this Act was the ability of Government to compel private developers to provide aVordable social housing—in some cases up to 20%—within their developments. Members feel that imaginative legislative measures, such as the example outlined, are required from central Government to counteract the worsening situation. Members believe also that there is a need to strengthen and enforce legislation which permits the Housing Executive the power to possess unoccupied dwellings in cases where they can reasonably be utilised for the purposes of social housing. In addition, the Council welcomes the recent steps taken by Government to address by legislative means the issue of anti-social behaviour by tenants. It is acknowledged that this behaviour aVects the quality of life within neighbourhoods and the Council would urge that such legislation is enforced firmly.

Holistic Approach to Development Belfast City Council has concerns in relation to the fragmented approach to development which has led to schemes being built without adequate social or business facilities to underpin the community needs in many areas. It feels there should be a radical overhaul of the way in which developments are delivered through a more co-ordinated and consultative approach.

Role of Housing Associations Belfast has seen a significant growth recently in the role played by Housing Associations in providing social housing. Members have expressed concerns that Housing Associations, which in many cases are based outside the community to which they provide housing, cannot address developments in the co-ordinated, holistic or community-centred manner which the Housing Executive has aspired to. This matter should be addressed through a more joined-up and consultative approach by the Department for Social Development, the Housing Associations, the Planning Service, and, most importantly, the Communities to which housing is to be provided. Northern Ireland Affairs Committee: Evidence Ev 201

Role of Belfast City Council Members have expressed an aspiration that the role of the Elected Members of the Belfast City Council should be enhanced with regard to housing matters. It is hoped that this issue will be addressed through the ongoing Review of Public Administration within Northern Ireland. However, on a daily basis, the Members of Belfast City Council deal, on behalf of their constituents, with housing matters and feel a sense of powerlessness since the issues raised are dealt with by other Agencies and Bodies. The Council, whilst holding no desire to acquire responsibility for the allocation of housing, feel that the role of the Elected Representatives of Local Government in respect of housing matters should be re-examined with a view to enhancing, in a spirit of partnership with other Agencies, such a role. It could be argued that eVective local government would dictate that those elected by the Community are best placed to articulate and argue their case for better housing conditions.

Conclusion The Members of Belfast City Council hope that the observations within this Memorandum will prove to be useful and constructive to the Northern Ireland AVairs Committee. 18 March 2004

APPENDIX 10

Memorandum submitted by the Construction Employers Federation

Introduction This Construction Employers Federation (CEF) is the employer’s organisation and trade association for the Construction Industry in Northern Ireland. We represent some 450 individual construction firms in Northern Ireland who operate in all sectors of the construction industry. With our associated companies that provide insurance backed warranties for domestic work together with an industry wide pension and holiday pay scheme we represent in excess of 1,500 individual construction firms in the Province. We welcome the opportunity to make a submission to the Northern Ireland AVairs Committee on the provision of social housing in Northern Ireland. Our submission addresses some of the major issues aVecting the supply side of social housing. This is because it is mainly our members who provide the supply of social housing and there are a number of factors that are aVecting their ability to maintain the supply. The CEF believes that the Province has an annual requirement of between 1,400 and 1,700 social housing units. We are concerned that there has been a decline in supply and that this requirement is not being delivered. We believe that major contributors to this failure include delays in the planning system and particularly the lack of availability of a supply of suitable development land. We believe that the issues aVecting demand for social housing are best addressed by the Northern Ireland Housing Executive who are the regional statutory housing authority in Northern Ireland and by the Department for Social Development.

Issues Affecting the Supply of Social Housing

1. Planning delays It is now widely recognised by government that the planning system in Northern Ireland is overburdened and has been under resourced. The CEF has made separate submissions on these problems through the Planning Service consultation on “Modernising Planning Processes”. There are major diYculties in the development control process, particularly with regard to the statutory consultation requirements. It is our belief that as a result of concern over potential breaches of human rights, this consultation process has become circuitous and extremely lengthy. The result has been to create unacceptable delays in the processing of planning applications. This in turn has created doubt and uncertainty in the process. It is not unusual for a planning application to take anything up to two years to complete. It is therefore diYcult for those trying to match the demand for social housing with supply, to have any certainty at all about the volume of output at any particular time. Ev 202 Northern Ireland Affairs Committee: Evidence

2. Land availability The programme of updating the suite of Area Plans in Northern Ireland is significantly behind schedule. The result is that most Area Plans have already expired or are about to expire. One outcome has been a significant reduction in the amount of land available for development. This in turn has pushed land prices up significantly and as a consequence has made the development of some social housing schemes unviable.

3. Planning Policy Statement 12 (PPS12) This is a very important document as it introduces a number of new concepts, such as the “sequential test” to determine the allocation of green field and brown field land for development. PPS12 is important in the context of the Regional Development Strategy that has set an overall target of 60% of development to be in brown field lands. While the Federation supports fully the concept of sustainable development, we believe that this 60% requirement should not be rigid. We believe that the RDS should be a flexible document, particularly as in many towns in Northern Ireland the 60% target will not be met due to a lack of available brown field sites. Obviously this has also acted as an impediment to the output of social housing.

4. Lack of suitable family type accommodation As already stated, the Federation fully supports the concept of sustainable development, however the introduction of the “Quality Initiative” has created some practical problems. The majority of housing in Northern Ireland has traditionally been the three bedroomed semi that provides very suitable good family type accommodation. The Quality Initiative requires developers to set aside substantial tracts of prime development land for open space and amenity use. The only way to make development viable on land that now command premium prices is to increase densities. This means more “town houses” and apartments. These do not necessarily provide the best form of family accommodation.

5. Increasing costs of housing Over the last number of years, Government has adopted a policy of passing on a broad series of charges and levies to developers that were traditionally met by the public service. This has had the eVect of unnecessarily pushing up the costs of housing to the extent that private sector housing is unaVordable to a large number of people. Once again this creates greater need for the provision of aVordable social housing.

6. The Barker Report In December 2003, the Barker report was published. This Report identified a number of important issues relating to the diYculties of meeting housing demand. The CEF issued its own Press Release in response to that Report. Some of those issues have been highlighted in this submission. 29 March 2004

APPENDIX 11

Memorandum submitted by Sinn Fe´in

Sinn Fe´in believes that the right to aVordable accommodation is a basic inalienable right and that social policy should be centred on delivering this basic right. While we believe that it would be far better if the issue of housing could be dealt with by the institutions developed as a result of the Good Friday Agreement, rather than by a Westminster committee, Sinn Fe´in welcomes the establishment of this inquiry and hopes that it will result in progress in dealing with the many problems facing social housing in recent times. The failure to deliver an adequate supply of social housing in the Six Counties has long been a source of concern for Sinn Fe´in. We have been to the fore over many years in calling for more funding to be allocated to this sector to ensure that the supply of aVordable homes reflects demand. Unfortunately, to date, this has not been the case. We believe that the problem will soon reach crisis proportions. Moreover, the longer it is left unsolved, the greater will be the financial cost to rectify it. Meanwhile, thousands are left waiting for unacceptable periods to be allocated decent accommodation. The whole problem is further exacerbated by high rents and spiralling house prices in the private sector. Northern Ireland Affairs Committee: Evidence Ev 203

Nor is it simply a matter of the construction of dwellings. We are highly critical of the environmental fabric of many of our social housing developments, which are bereft of basic amenities and recreational facilities. We believe that any housing authority should not only be involved in the supply of social housing but also, in collaboration with other statutory bodies, in the development of sustainable communities. Moreover, it is essential that authorities responsible for social housing should build relationships with local residents and facilitate their involvement in the maintenance and development of their residential area. Among other benefits, building partnerships between residents and statutory authorities helps deal with the scourge of vandalism and anti social behaviour. We recognise the contribution that housing associations have made, especially in the provision of sheltered dwellings and other specialised developments. However, we do not believe that the use of housing associations as the prime provider of social housing stock has been eYcient or eVective. The policy change which removed from the Housing Executive its role as a housing provider, reducing that role to being a housing adviser was ill judged and detrimental to the building of a suYcient volume of social units. The consequences of this poor policy decision can clearly be seen today. The Housing Executive was created in 1970 to tackle systematic discrimination in housing and address the years of neglect. While mistakes were made, over time the Housing Executive built up an impressive level of expertise and experience in all aspects house building and housing development. That expertise could be used to improve the supply of social housing if the Housing Executive were given responsiblity for building and managing social housing schemes. At the very least, the Housing Executive should be allowed the same powers to borrow money as is given to Housing Associations. Primary departmental responsibility for overseeing housing programmes lies with the Department for Social Development. To the extent that adequate programmes are not being delivered, the DSD has failed in its responsibilities. It is essential that the Department is subject as soon as possible to the rigours of local democratic accountability. In the meantime, there is an immediate imperative for the Department to act, and be seen to act, in accordance with the requirements of the equality legislation resulting from the Good Friday Agreement. Over the past number of years there has been a significant increase in the number of tenants buying their own homes. While we welcome the policy of allowing people the choice of purchasing their own homes, we are also aware of a number of negative factors associated with this policy. First, running parallel with the reduction in the social housing stock there have been continuing cuts to funding for the cyclical maintenance of properties. This adds significantly to the run down condition of many of the properties. In the past cyclical maintenance had the benefit of both preventing deterioration of stock, and of providing the means to systematically identify and rectify problems at an early stage, thus minimising the costs of repair. Lack of finance has resulted in these schemes being postponed for months, years, or even indefinitely. Any short- term financial gains resulting from cutting maintenance services will be considerably outweighed by the long-term costs of rectifying the dilapidation of stock that will result. Second, the combination of tenants buying their homes and a reduction in the volume of social housing build has led to a crisis in social housing supply. While they fluctuate from time to time, there has been a steady trend of rising waiting lists in the Six Counties. This increase is not evenly spread. Rather, it is largely concentrated in specific areas. The one thing that these areas have in common is that they are nationalist areas with growing young populations. More and more people in these areas require rehousing but because of a lack of strategy to deal with this increasing demand, these areas have been left suVering from significant overcrowding. This crisis requires urgent attention, yet it would seem that the will does not exist in government to provide such attention. We suspect that this lack of will is at least partially the result of a misguided or disingenuous view that fairness means equality of supply rather than a the eradication of sectarian inequalities in waiting lists. A stark example of sectarian equalities in housing is that of North Belfast. The figures speak for themselves. In 2002, the housing waiting list for North Belfast contained a staggering 1,748 applications. Of those applications, over 80% were made by Catholics. The figures for those classified as being in housing stress are very similar, with 764 applicants suVering from housing stress being Catholic as opposed to 172 Protestants. In other words, if you are a Catholic in North Belfast, you are four times more likely to be suVering from housing stress than your Protestant counterpart. It is high time that such blatant inequalities are ended. That can only be done through a unified and co-ordinated strategy. We do not believe that the piecemeal approach of using housing associations is capable of delivering what is required. Part of the problem experienced in North Belfast results from the criteria adopted for redevelopment. Eligibility for redevelopment is related to the levels of dereliction in a specific area. It is our understanding that long-term unoccupied houses are classified as derelict. The consequence of including empty houses in the criteria is that those areas where there is overcrowding and housing shortages are disadvantaged in comparison to areas where there is under-population and over-supply of housing stock. In working class areas of North Belfast this inequality maps out to sectarian inequality in that nationalist working class areas are almost universally characterised by pressure on housing stock, while many loyalist areas, such as those adjacent to the lower Crumlin and Shankill Roads, do not contain a population large enough to fill the houses that have already been built. We believe that there should be a rebalancing of criteria to ensure that redevelopment is not concentrated in areas where there is already a surplus of housing stock but is used to relieve overcrowding and lack of supply. Ev 204 Northern Ireland Affairs Committee: Evidence

The continuing decline in the supply of social housing can in many ways be attributed to incompetence or a lack of understanding in the DSD on how to deliver a scheme of this nature and their failure to monitor the inability of housing associations to deliver the housing programmes allocated to them. The inability of housing associations to meet their targeted programmes has led to a year-by-year fall in social house building. In 1999–2000 there was DSD funding for 2,200 new build starts, but there were only 1,800 starts— a shortfall of 400. In 2000–01 funding was available for 1,700 starts, actual starts were 1,114, a shortfall of 586. In 2001–02 there was funding for 1,400 starts, actual starts were 1,005, a shortfall 395. In 2002–03 funding was available for 1,400 starts, actual starts 900, 500 short. In other words, over the last four years almost 1,900 houses less have been built than should have been. In summary, Sinn Fe´in believes that there are problems with the supply of housing stock that require urgent attention. These problems can be categorised into three broad and interrelated issues: 1. Funding: there needs to be increased investment in social housing to ensure that there are adequate resources to meet the acute demand for this type of housing. 2.Management: the piecemeal management entailed in the devolution of authority to housing associations has proved inadequate to the task of building a suYcient volume of stock. 3.Sectarianism: there is currently a sectarian imbalance in both the existing supply of social housing stock, and in redevelopment schemes to improve housing stock. This is completely unacceptable. 23 April 2004

APPENDIX 12

Memorandum submitted by Professor Alan Murie, School of Public Policy, University of Birmingham

Public and Social Rented Housing in England, and its Relevance to Northern Ireland The history of public and social rented housing in England diVers from that in Northern Ireland in important ways. There was a much more active investment in public sector housing in the inter-war years and local authorities remain the key players in the provision of public sector housing although in the mid- 1980s housing associations developed the key roles in the provision of new housing. There are housing associations which had something of the role of the old Northern Ireland Housing Trust, but never had as clear a role as the NIHT. However, there are a large number of longer established housing associations dating from diVerent periods in the development of government policy. The public sector housing stock in England is generally of a more mixed age, quality and design than in Northern Ireland. There are more systems built properties and medium and high rise flats, and a greater proportion of the housing stock is older. These factors are important taken in conjunction with the more recent history of public sector housing from the 1980s onwards. In this period investment in Northern Ireland was significantly protected from cuts and there was a consistently high level of investment in new house building, and in maintaining the quality of the housing stock. In England the new build programme was largely eliminated and repairs and maintenance budgets were not suYcient to prevent a decline in the quality and condition of the housing stock. Against this background public sector housing in England has experienced a long-term decline in quality and status. It has increasingly become identified with households which are not able to access the owner occupied sector, with concentrations of deprivation, and with management problems. The residualisation of the sector is often referred to meaning a narrowing of the social base of the tenure. The Right to Buy in England has contributed to that process, and has disproportionately aVected the better quality properties. The final element in the changing face of public and social rented housing in England is the changing demographic structure, with a shift from being a sector housing families with children and providing long- term lifetime housing towards one of housing smaller households, older childless couples, young single people and couples with or without small families. Two groups among the population are over represented in council housing, young people under 25 and elderly people over 65. There is a discussion of a demographic wave which has had an impact on the rate of which properties become available for re-letting and is likely to continue to have an impact in the future. Stable estates become less stable because of a changing demography. Taking all of these factors together the council housing sector is much less stable and aspirational than it was. It is more likely to be used for short-term coping strategies in peoples housing careers and management problems associated with higher turnover and vacancy generation have become important. Rising aZuence and the advantages associated with home ownership have left the council housing sector as a second best tenure. Changes in the private rented sector, also mean that for some households that sector provides more choice than the council housing sector does. As a consequence of all of these developments we are having to recognise that the dynamics of the council housing sector are diVerent than in the past. There are a number of alternatives. The sector could decline in size and continue to develop as a residual sector. This would acknowledge diVerent management and other challenges. Alternatively there is a need for significant restructuring of the sector with a greater attention to Northern Ireland Affairs Committee: Evidence Ev 205

quality and investment levels, and with more concern for what households want and what would make council housing competitive with other tenures. The current debate about housing market renewal and the actions taken in relation to stock transfers are more strongly influenced by a view that public sector housing can be reinvented as a high quality sector of choice, but that this is only achievable with considerable investment. The issues for Northern Ireland from this debate are significant. Northern Ireland starts oV from a better position with a more modern, better quality public sector housing stock, and without the same erosion of confidence in the sector that has been experienced in parts of England. Nevertheless, it must be assumed that some of the demographic and housing market changes aVecting council housing in England are also aVecting Northern Ireland. There is residualisation, demographic structure, and the aspirations of more aZuent households for home ownership is important. The advantages in terms of quality and condition will only be maintained with consistent investment, and the need to rethink and restructure the tenure will also be relevant planning to take account of changing demographics and the demographic wave. Recognising the competitive challenge from other tenures implies continuing to invest in high quality public sector housing and adopting policies that provide people with choice. Some of the debate in England about pathways of choice to enable people to adjust their housing circumstances without having to relocate maybe particularly relevant in this context. These points provide the background to responses to some of the specific issues which may arise in examining the eVectiveness of current housing provision in Northern Ireland, and especially questions in relation to social housing. In my view the issues about quality of social housing are of enormous importance, and Northern Ireland has an advantage at the outset, but it needs to be very careful to continue to invest at suYciently high levels to maintain a quality which will make the sector as attractive, not just to households with no choice. In a period of rising aZuence and with a preference for owner occupation it may be that we should not anticipate a significant further expansion of the social rented sector, but it is important that any additions to the stock are of high quality and that the management and maintenance of housing is organised in a coherent way. In my view Northern Ireland has had an advantage in having a strong single housing authority, and I am not convinced that a large number of small housing associations is advantageous. However, some degree of choice and diversity within the social rented sector is an advantage. It does not seem to me to be desirable that one part of the social rented sector has no knew properties in it, and consequently the profile of the stock over time will become increasingly older, and could become less attractive. I would also have doubts about this approach if housing associations tasked with achieving new building targets are either failing to do so, or are doing this through the acquisition of existing housing, rather than adding to the housing stock. The pattern in England currently is to concentrate investment through housing associations on an increasingly limited number of associations that have large development programmes where there are real economies of scale and a capacity for innovation. I suspect that if this approach was adopted in Northern Ireland the concentration of resources would be purely upon the Northern Ireland Housing Executive. While this might be undesirable, it could be appropriate to have a greater degree of focus and to include the NIHE within the recipients of funds for new building. The issues of low and changing demand in England have called into question the standard methodologies for estimating housing need. A new approach to housing market assessment introduces diVerent considerations. My view is that it would be appropriate to pay more attention to evidence about how the market is currently working, and to adopt an approach which is more vision based—What kind of housing and what kinds of neighbourhoods it is intended to create in Northern Ireland, rather than being projection based. The projection based stock and flow methodologies have disadvantages because they assume a continuity in trends, and secondly because some of the quantification rests upon limited data or assumptions which may not prove reliable. A considerable amount of interest is taken in the House Sales Scheme. Across the UK the impact of house sales is lagged rather than immediate because purchases are by sitting tenants, who would not have moved anyway. This means that the impact of house sales may not be felt until 20 or more years later. The decline in re-lets in Northern Ireland may impact particularly heavily over the next few years. In this context it is important to maintain a level of building which would keep the flow of lets available at a level linked to demand. However, in reality this would not be achieved by restricting the Sales Scheme because the properties that then would be taken out of the House Sales Scheme or the lower level of sales would not have generated vacancies anyway. The key to balancing the impact of the Sales Scheme is an appropriate level of new building. In my view it is important to recognise that the receipts generated by sales can be crucial in enabling this level of new building to be achieved. The sale of a property that would not have generated a vacancy for twenty years, could provide a receipt which enables half of a property to be built within the next five years. The impact of this on the flow of letable properties could then be positive. We would also need to be sure that the locations and types of property that were being generated through this route were adequate. Essentially, the action that is crucial is about the level of investment rather than the operation of the Sales Scheme alone. Ev 206 Northern Ireland Affairs Committee: Evidence

In England shared ownership schemes are seen as an important way of bridging a middle-market between the mainstream home ownership sector and social rented housing. The problems with shared ownership in England are partly to do with the diversity of providers and the complexity with detailed diVerences between diVerent providers. In this sense again Northern Ireland has a great advantage in having a single co- ownership scheme which is tried and tested and presents no problems to lenders and others. It also appears to have been successfully targeted and can be used to achieve mobility within the social rented sector. It would seem reasonable to incur some level of expenditure on this scheme in excess of that covered by receipts from the Scheme. Finally in relation to decent homes, the decent homes standard has been particularly important in England in demonstrating a commitment to address the quality and condition problems in the social rented sector. I do not believe that there are such severe problems in Northern Ireland, but that should mean it is easier to meet the decent homes standard in the public sector, and this is a guarantee to tenants. The major hesitation in relation to the decent homes standard is if it leads to properties which might within a relatively short time become the target for demolition, and it leads to short-term decisions to improve the condition for which there is underlying demand. It would be important to link the decent homes standard to a strategy for housing development in the public sector, and to extend the approach to the private sector in relation to the later. There may be diYculties especially in rural areas and care would need to be taken that the standard was an appropriate one for Northern Ireland. June 2004

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