Housing in Belfast, a key area in the Northern Ireland housebuilding crisis

The number of starts and completions for homes in Northern Ireland has grown, but concern remains in cuts to social housing funds

The Department of Finance has released the latest statistics on Northern Irish housebuilding, and the Chartered Institute of Housing has analysed the stats.

New homes started in Q1 2025 sits at 1,725, while completions in the same period sits at 1,359, marking a 9.4% and 7.9% increase respectively.

The highest number of starts in a quarter since 2022

The two stats growing are indicators that the sector is recovering, and are critical to addressing housing needs in the region.

Apartments dominated the stats, with 1,584 apartment starts in Q1 2025, and 141 new house starts in the same period.

Justin Cartwright, CIH Northern Ireland national director commented: “These latest quarterly figures offer a crucial insight into the health of Northern Ireland’s housing market, and the news is positive. The nine per cent increase in new home starts and the eight per cent rise in completions demonstrate progress to meeting our housing requirements. It’s particularly pleasing to see the consistent upward trend in starts over the past two years.

“However, when we look at the bigger picture, significant challenges persist. For the full 2024-25 financial year, provisional new home starts stand at 6,580, with completions at 6,126. While these figures are an increase on the previous financial year, they fall short of what Northern Ireland truly needs.

“The Department for Infrastructure’s housing growth indicators suggest an average of 5,700 homes are needed annually, but this is a conservative estimate. In our view, at least a couple of thousand more homes than that are needed each year to keep pace with demand, address backlog and alleviate homelessness. This means we remain significantly behind the numbers of new homes we need to build annually.

“Furthermore, to sustain an increase in overall housing supply, adequate capital funding for new social housing is vital. The recently published Department for Communities budget shows that the amount available for allocation to new social homes is £100 million less than was indicated in January. This deeply concerning reduction means that instead of starting around 1,600 new social homes this financial year, we are now likely to start around 1,000, against an identified need of more than 2,000. Such cuts will severely impact the most vulnerable in our society and exacerbate the housing crisis.

“To maintain this positive trajectory in starts and to urgently address the growing social housing need, we urge the NI Executive and relevant departments to review capital allocations, accelerate initiatives that streamline planning processes, and invest adequately in essential infrastructure. A clear long-term housing strategy that is underpinned by realistic funding is paramount to provide the certainty developers need and ensure everyone in Northern Ireland has access to a safe, affordable and quality home.”

Northern Irish housebuilding is crucial right now

A report from Construction Information Services in October last year shows that the Northern Irish housing crisis had not slowed down, with housing completions mostly being down in 2024 from 5,373 in 2023 to 2,778.

At the time, CIS commercial director Dave Thimpson said: “If this current pace continues for the remainder of 2024, it will mark another challenging year for the housing market. This continued decline could impact home availability, particularly in key urban centres. These issues, largely driven by under-investment, have limited the region’s capacity to meet housing demand, particularly in high-demand regions like Belfast, Antrim and Newtownabbey.

“Addressing the shortfall in both social and affordable housing is critical – particularly as demand for low-cost homes continues to rise. Without a greater emphasis on both of these areas, Northern Ireland will struggle to meet the current housing demand, particularly as economic pressures intensify.”

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Northern Ireland housebuilding sees growth
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