Debate contribution: Housing: Affordable Rent Programme

Debate contribution by Mr Gordon Lyons on 16 June 2026.

MLA

Mr Gordon Lyons

Party at the time

Democratic Unionist Party

Date

16 June 2026

Type

Debate contribution (made as a minister)

Business

Ministerial Statements

Heading

Housing: Affordable Rent Programme

Assembly identifier

Official Report component 5623656

Read the official Assembly record

Text

Thank you, Mr Speaker. I welcome the opportunity to update Members on the progress of the affordable rent programme. I am pleased to announce that I have made an award of £61·5 million of financial transactions capital (FTC) loan funding to Maple and May. I can also now provide information on the locations where we will see the first affordable homes of this type delivered in Northern Ireland.

Members will recall my previous announcement on this important initiative, when Maple and May was selected to act as the first affordable rent operator. I can now confirm that, since then, terms have been agreed and £61·5 million of FTC loan funding has been formally awarded to support delivery. That is a significant milestone and the next step towards those homes becoming available for rent. It means that we are moving from policy ambition to real, tangible delivery, providing the homes that people across Northern Ireland desperately need. In the coming weeks, the first scheme will be open for applications under the Maple and May affordable rent brand. The programme represents a strong and innovative public-private partnership. An initial investment from my Department will act as a catalyst, leveraging substantial private capital alongside additional private revenue investment from Maple and May. Together, those bring the total value of the funding programme to more than £122 million over the 25-year loan term. Importantly, because it is loan funding, it allows me to continue to prioritise my capital budget towards grant funding for social housing, therefore maximising every available resource towards the delivery of new homes.

The homes delivered under the programme will be high-quality, new-build properties located across Northern Ireland. They will form part of mixed-tenure developments, as well as stand-alone schemes, helping to create balanced, sustainable communities where people can put down roots. Critically, the homes will be offered for rents at least 20% below local market levels. That is a meaningful saving for working households. Rents can be uplifted only once annually, in line with legislation on the private rented sector, with an effective cap in place. Homes will be targeted at lower-income households, and, alongside that affordability, tenants will benefit from greater security through longer tenancies in high-quality, well-maintained homes and access to support services when they need them. I turn to delivery. The first scheme will be in Dungannon, where 15 two- and three-bedroom homes are being built alongside social housing. That will be the first mixed-tenure development of its kind in Northern Ireland. My goodness, even the Chairman of the Communities Committee is smiling; there is another moment for the history books. As this and other schemes near completion, they will be advertised by Maple and May for rent, and eligible households can apply for a tenancy. Those tenancies are deliberately targeted towards lower-income households to maximise impact. Further schemes will follow in this financial year in Newry, Craigavon and Lisburn, and additional locations are planned, including Belfast and Londonderry, as part of an expanded roll-out next year. The first homes, which will be on the Old Eglish Road in Dungannon, are expected to be available to rent from later this summer, and I can confirm that advertising for those properties will begin shortly via the Maple and May website. The programme is about providing real options for people. It will give people and families access to more affordable rents, greater stability and a genuine opportunity to plan ahead, whether that is about saving towards homeownership or simply securing a suitable, affordable home while waiting for access to social housing. Access to the homes will be fair, transparent and consistent. Eligibility criteria for a tenancy have been clearly set out in my Department’s policy. For example, households with a single adult must earn below £30,000, and those with two adults must earn below £40,000. That is intended to direct the tenancies to households that need them and can derive the most benefit from what is being offered. There is no doubt that this type of housing is badly needed. Too many people are caught in the gap between being unable to access social housing and being unable to afford the cost of living in the private rental market. The programme is a direct response to that challenge. Let me be clear: this is only the beginning. Work is already under way to expand delivery beyond the initial 300 homes. My ambition is to see the model grow and play a meaningful role in addressing housing supply and housing need across Northern Ireland. Alongside continued investment in social housing, the funding demonstrates a practical and innovative approach. It aligns with the objectives of the housing supply strategy to increase supply, broaden choice and ensure that people have access to the housing that they need. Over time, it will reduce pressure on our social housing waiting list, as households that meet the criteria can access affordable housing. It also reflects my personal commitment, as Minister, to increase housing stock, use the resources available as effectively as possible and adopt new approaches where they can make a difference. My commitment goes far beyond the delivery of that new type of affordable housing for rent. The housing supply strategy seeks to accelerate the delivery of housing supply over the coming years. Shared ownership delivery through the Northern Ireland Co-ownership Housing Association is being expanded and plays a key role in enabling first-time buyers, in particular, to access affordable homeownership. Its over-55s scheme provides an important additional element of choice for people to move to homes that better suit their needs as they get older. I continue to press at every opportunity for us to prioritise accessing the necessary capital funding to deliver the social homes that we need.

At the beginning of 2025-26, the outlook for the social housing development programme (SHDP) was poor, with a budget that would have achieved only 1,100 new social homes. I secured a further £42 million, resulting in the largest-ever investment in the social housing development programme, and achieved 1,765 new social home starts, representing a 17% increase in delivery year-on-year. There are now more than 6,000 new social homes under construction across Northern Ireland. Looking forward, we need to do more. We need to secure more budget much earlier. In December 2025, £29 million was as much extra funding as the programme could absorb once in-year funding became available. I have, therefore, repeatedly pressed the Executive to earmark more funding for the SHDP. While there is some impact from that in the current Budget proposals, it is still not enough. That is why I have proposed to secure public-sector land instead of grant. The reviews of grant and design and the range of measures being explored or introduced will complement the SHDP in moving towards the housing supply targets. The measures include the New Foundations initiative, Housing Executive acquisitions and the housing supply action plan, which is now with the Executive. I secured the major achievement of a commitment from the UK Government to consider Northern Ireland Housing Executive (NIHE) borrowing as part of the Northern Ireland fiscal framework discussions. In the meantime, urgent engagement continues between officials on the means to secure the financial viability of the Housing Executive and identify an interim solution to its investment need. I fully intend to make good on the commitments that I have made in this place and, in the supply strategy, to make sure that every household can have access to a quality, affordable and sustainable home that is appropriate for their needs and located in a thriving and inclusive community. That is what the new affordable rent homes will do. Ultimately, the programme is about more than bricks and mortar. It is about giving people security, providing stability and helping hard-pressed individuals and families to build a better future. I look forward to updating the House further as delivery progresses. I commend the statement to the House.

First, I welcome the Member's comments on the scheme. The simple answer to his question is yes, we are absolutely looking at need. We want to make sure that the money that we invest, whether it is from our own capital budget or, in this instance, financial transactions capital, goes to where it can make most difference. He will be glad to hear that the answer to the question is a simple one: the scheme will help areas that are most in need. The Member will be aware that his constituency of Foyle is one of the areas where we have greatest housing demand. That is why, in the first phase, an additional 60 homes will be made available in his constituency. There are huge waiting lists, and I want to do more to make sure that we tackle the overall need for housing. This scheme is one part of that, and it is small to start off with, but I want to make sure that it grows, as well as doing the other things that I have outlined today.

I thank the Member for his comments. I am pleased, as is a Member behind me, that the first tranche of homes will be in Dungannon. It is important to note that we have pushed the programme forward so that we are not just talking about policy development but about homes that have been built and are ready for allocation. I look forward to that proceeding. We have had extensive conversations about how we ensure that the people who need the homes most will get them. We will have an application process through which an individual will have to demonstrate that they can afford to pay the rent; that, for example, social housing is not the best option; and that the programme is right for them. After that, there will be a random selection process, because demand will almost certainly outstrip supply. That is the fairest way to do it, because everybody will be eligible in the same way. It is not the same as social housing; it will not be done on a points basis. However, the process can absolutely be kept under review. That is why we have 300 homes in the first place: lots of things are being done differently. It is important to note that this is the first time that such a programme has been offered in Northern Ireland. I want to make sure that it is done in the fairest way possible. The information that we have right now is that random selection is the best way to do it, but, of course, I want to keep it all under review, because I want to see the programme massively scaled up so that it can help many more people. We will keep it under review.

I am grateful to the Member for her kind comments. I am pleased that we are seeing the scheme rolled out not just in a small number of locations but across Northern Ireland. In fact, in the initial tranche, eight of the 11 council areas in Northern Ireland will have access to some of the affordable rent accommodation that we have announced today. We have need throughout Northern Ireland. Yes, absolutely, there are higher numbers in some places, but, across Northern Ireland, the need is now consistently high in places where people are struggling. I am committed to making sure that we get a balance and spread and that the programme is not restricted to certain areas. I want to see it ramped up across Northern Ireland so that we deliver more and more. It is new, innovative and does not affect the social housing development programme. It will take no resource away from that. I want to keep putting investment into that programme, absolutely, but here is something new that will work and will deliver for people in the Member's constituency within a matter of weeks because of the decisions that I have taken on coming into this office. Let us ramp it up and ensure that we continue to have a spread across Northern Ireland.

I am happy to publish any of the analysis that has been done. However, when we put 300 new homes on the market for people who have not otherwise been able to avail themselves of homes in the private rented market because of the cost, it is inevitable that a large number of them will be on the social housing waiting list, and probably very far down it, because the housing problems that we face in Northern Ireland can be summed up in one issue: supply. By creating the affordable rent programme, taking no money out of the social housing development programme but using financial transactions capital and private investment, we are increasing supply. Three hundred homes represents a great start, but there is so much more to do. If we want to reduce the social housing waiting list in Northern Ireland, we need to increase supply across all 10 years. That is what today's announcement is about. It is what we are achieving.

Compared with the local open market rent in that area, rates will initially be set at a discount of 20% . The Member is right to ask how we can ensure that those homes are protected. That is why, for the programme, the increase is subject to a cap of CPI plus 1%, up to a maximum of 5%. The intention is to ensure that tenants are not exposed to the financial shock of a larger rent increase and also to ensure that their landlords secure the revenue necessary to maintain the homes to the very high standards to which they will be constructed. I hope that that provides the Member with some reassurance. We want to make sure that the programme is used by those who need it most. It is not a scheme for everybody. There will be some for whom social housing is the best option, while there will be others for whom the private market is still best. We are trying to target those in the middle who are struggling to access either. I think that that will come to fruition as the programme is rolled out.

I hope that I can give the Member some comfort today. Although we do not have any announcements for her constituency today — I share her frustration in that regard for my constituency — we are looking to develop and ramp up the scheme. I have given very clear instructions about my wanting to see that happen. By next March, we will have a plan for how we can significantly ramp up the scheme. It is part of the housing supply strategy action plan, which is now with the Executive. I hope that Executive colleagues will support me with that. We have made more progress on Housing Executive borrowing than we ever have done before, and I believe that we can make a breakthrough. While we are waiting for that, however, I have asked for work to continue so that, when we access those borrowing powers, we are in a position to start. I tasked the former chief executive of the Housing Executive, who has now left her post and is in another role, with making sure that, if and when those powers are made available, the Housing Executive is ready. There is a significant investment need in current Housing Executive properties. That is to where some of the borrowing powers will go. I also want to make sure that we build more homes. Yes, we need to make sure that we improve the standard of our existing stock, but we need to start building more homes as well. Overall, we have been trying to increase the number of houses in Northern Ireland. We are looking at the grant rate and the design guide so that we can make our current housing grant go further. It is also why we are looking at land, instead of just grant, and at intermediate rent. We are doing everything that we can to make progress. I hope that more homes in the Member's constituency and my constituency will be announced in further rounds.

Yes, absolutely. I want to make sure that this is expanded and that we have substantial numbers. I believe that this is innovative and can make a real difference. Although the 300 homes will be very welcome to those who are going to get them, we need to see many, many more. I want this to become a sizable proportion of our housing offering in Northern Ireland, so my team will be doing everything that it can to ramp this up. I look forward to many, many of these homes being made available in East Antrim as well.

I am grateful for the Member's question, and we will certainly do everything that we can to get as many homes as possible in new areas that have not been mentioned yet, as I said in response to Cheryl Brownlee. On the question of when the homes will be available, as I said, homes in Dungannon are going to be ready within the next few weeks. In the other phases, homes in Craigavon will be ready in autumn 2026, then Newry and Lisburn in the spring of next year. There will be further allocations in 2027 in Londonderry, Craigavon and Antrim. We are seeing houses being built already, and they will soon be allocated. These are not homes that are in the pipeline and will be available somewhere down the line. Some of them will be available very shortly, and others are in construction. At the same time, we are going to be looking at the policy to make sure that this can be ramped up and we can have even more in the construction pipeline after that.

Absolutely. These homes will be constructed to the design guide plus, if you like. They will be the same as social homes, however, they will have a turnkey finish. I know that that will be very welcome so that people can move straight in. They are being finished to a very high standard because I understand that we want to target the homes towards people who will be struggling a little. Perhaps they will be struggling to pay full market rent, and we want to make sure that the houses are ready for them to move into. That will be the condition of the stock, and the standard to which they will be built will align with the design guide. I think that there are changes that can be made to the design guide. Housing associations are very keen that we look at that. That is progressing, and I hope to have an update towards September so that we can make sure that we progress with that and make it easier and more straightforward to build social homes.

Unfortunately, not as part of the 300 homes. I do not think that we are going to be in a position to do that. Apologies, again, to Deborah on that one. I do not think that I have ever had questions on a statement where nearly every Member from Fermanagh and South Tyrone has asked me a question. It is unlikely, at this stage, that Fermanagh will be included in the current 300. However, as I have made very clear — I hope that the message has gone out very simply today — I want to see this programme ramped up. This is new and innovative. We are doing something different. It does not come at any cost to the social housing development programme or the Northern Ireland Executive Budget. We underutilise financial transactions capital, and this is an example of how we can use tens of millions of pounds more. I want to see it ramped up, and, yes, I want to see more homes in Fermanagh as well.

Yes, absolutely. Housing associations are unable to be involved in this sort of work, because current private tenancy legislation excludes housing associations from owning properties that are let as any form of private rental. Therefore, we are limited in how we can use financial transactions capital. This is a new and different way to use it, and one that will be able to deliver results. I have significantly ramped up the amount of FTC that the Department is using, particularly across housing. Changes to how FTC can be used are coming, and I want to explore the use of FTC across all areas of the Department. I want to get as much grant money as I can. I want to make sure that it goes as far as it can. I want to look at where else we can use FTC. This is one way in which we can use it, and that is why we are using it in this way. It is a start, and I want to do more.

I know that this is becoming a common theme: there are areas that have been successful in this round and others that have not. However, I want to make it clear that I am determined that this will be available everywhere in Northern Ireland. I wanted to get it out as quickly as we could, and we found the available sites. I commit to him that we will do everything that we can to make sure that the Causeway Coast and Glens area is included in the next tranches, as we expand the programme. I am well aware of, and have been working on, the issues that are specific to his constituency. We are aware of the impact that holiday homes are having, and work on that is ongoing through the housing supply strategy. I know about the housing need in his constituency. That is why we will continue to build more social homes. I want to make sure that this programme will also be available to low-income households that need support.

First, I would have thought that he might have liked to welcome the fact that, in the first phase, we will be delivering an additional 18 homes in his Newry and Armagh constituency. That will help 18 families or individuals who are hard pressed, cannot get to the right position on the social housing waiting list or cannot afford homes in the private rental market. This helps; it makes a difference. They are small numbers — yes — but we want to ramp it up. It is important that we acknowledge that this has never been tried before. I came into office and said, "I want to push this forward". We now have homes being built, and, within a few weeks, applications will be made for homes that have already been constructed. Let us celebrate that and say, "We've tried something new. It's working. It's making a difference". We are going to ramp it up and achieve things that will be of benefit to the people in Northern Ireland. We also need to do what I outlined in my statement: make sure that we have more social homes. That is why I want to see a Budget in place that allows us to proceed and meet the targets that have been set in the Programme for Government.

I am still making that case to Executive colleagues. I hope that that can be achieved, because housing is one of the most foundational and fundamental things, and that is why I put in that bid.

I am not just sitting here asking for more money. Yes, I would love that, but I have also taken the initiative to think how we can make the money that we have go further. That is why we are looking at the housing association grant. That has been changed so that housing associations can stretch that and do a little more, and, by doing so, we can build more homes. That is why we are also looking at the design guides. How can we make it more effective for us to build homes? How can we make it cheaper for us to build homes, while still at a high standard, by taking out anything that is unnecessary. This is one part of the overall puzzle as we seek to improve housing supply. I hope that the Member recognises the steps that have been taken and welcomes the fact that we have got more homes for Newry.

I am grateful to the Member. I can confirm to her that there will be 20 new homes in her constituency on the Niblock Road in Antrim. They will be five-person, three-bedroom homes, which will help families there that are struggling. The Member raises an important point about deposits. They can be out of reach for many people who cannot access the private rental sector for that reason, especially with average rents now being over £1,000 per month in Northern Ireland. If someone is asked for a deposit of one, two or three months, that could be a substantial amount. That is why, under the scheme, there will be a deposit builder in place so that, over a period of months, families can contribute to the required deposit. That is something new that is being tried for the scheme and will be welcome, as it will not serve as a barrier to those who would like to access the scheme but for whom a deposit might be a concern. It gives them a few months to build up a deposit, and that should be welcomed.

4,258 words. Text as published by the Northern Ireland Assembly.

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Assessed 21 October 2026 at 15:48 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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