26/03/2025

NIHE To Buy 600 Homes To Tackle Temporary Accommodation Costs

Housing Minister Gordon Lyons has approved a new initiative that will see the Northern Ireland Housing Executive purchase up to 600 homes over the next three years to be used as temporary accommodation.

The move is aimed at improving provision for those facing homelessness and significantly reducing the cost of temporary housing, potentially saving up to £75 million over the next seven years.

Temporary accommodation is provided as a short-term solution for individuals and families who are homeless and in priority need. In recent years, there has been a significant increase in the number of households requiring this type of support, with up to 450 households on any given night being placed in what is termed 'non-standard accommodation', such as hotels and bed and breakfasts.

The financial burden of providing this non-standard accommodation has also risen dramatically, escalating from £668,425 in 2017/18 to over £12 million in the financial year 2023/24.

Minister Lyons emphasised the need for a new approach, stating: "When I launched the Executive Housing Supply Strategy, I said we had to be radical and innovative in our approach to housing. We live in times of unprecedented housing stress. That means looking at new ways of doing things as we seek to tackle the challenges we face. In relation to Temporary Accommodation, it is clear that the status quo cannot continue, and we must act."
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He explained that the approved plan will enable the Housing Executive to purchase up to 600 homes over the next three years for use as temporary accommodation. "It will reduce reliance on, costly, hotel and B&B accommodation. Also, it will allow the NIHE to invest in prevention activity - supporting families experiencing, or at risk of, homelessness," the Minister added.

This initiative is the latest in a series of measures following the Housing Supply Strategy, designed to address housing needs across all sectors. These measures include funding more homes, providing necessary support, and ensuring effective help is available for those in crisis. The plan also aligns with the Programme for Government target to focus on preventing homelessness, making it brief, rare, and non-recurrent.

Grainia Long, Chief Executive of the Housing Executive, welcomed the Minister's approval. "The Housing Executive prioritises high quality temporary accommodation, with the majority of the provision in Northern Ireland being single lets. We remain committed to reducing the cost and use of B&B accommodation, and that work continues at pace. We recommended this proposal to purchase properties for use as temporary accommodation, and I am delighted that Minister Lyons has agreed. This will allow us to expand the use of cost-effective, own front door temporary accommodation. It will reduce costs, and allow more households to access higher quality accommodation better suited to their needs."


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