It is hard to put a price on independence, but Cameron Watt believes that when it comes to Northern Ireland and the local economy, it is worth millions of pounds.

As chief executive of the Northern Ireland Federation of Housing Associations (NIFHA), he says independent status gives local housing associations access to millions of pounds of private finance to provide thousands of affordable homes.

In turn, housing associations, which have assets totalling £3.3 billion (€4.6 billion) in the North, employ nearly 3,000 people and contribute more than £60 million each year in wages alone to the local economy.

Watt says the economic role played by housing associations, which are not-for-profit, social businesses, should not be underestimated.

Now he is urging the North’s Minister for Social Development to make sure the independence of local housing associations is protected in light of moves last week in Britain to reclassify their English counterparts.

The UK’s Office for National Statistics (ONS) has ruled that English housing associations are to be reclassified as public bodies, which will add about £60 billion to the UK’s public debt burden.

New classification

British housing associations fear the new public sector classification could result in them not being able to borrow money in the same was as before, which could mean fewer homes getting built.

The ONS ruling does not extend to Northern Ireland.

However, Watt says it is crucial that local housing associations retain their independence in the future not only to continue to access finance but to keep creating jobs and making a vital financial contribution to Northern Ireland.

“The one thing we can all agree on is that we don’t need a bigger public sector in Northern Ireland, but we do need freedom to innovate and create successful partnerships that will deliver for Northern Ireland,” he says.

Watt believes it is time to strengthen the foundations that housing associations have built across the North.

Currently, associations provide social and affordable housing for about 80,000 people. But Watt says the time is right for a new debate on what else housing associations could achieve if they were given the right opportunities.

“At the moment Northern Ireland is only building half the homes that are needed to house the population and to sustain the economy, so we need to look at what needs to be done to address that and how housing associations can support new homes,” Watt says.

“From mainstream family homes through to equity projects like co-ownership and sheltered and other accommodation for older people, there is a big challenge to meet demand.”

However, he believes there is an opportunity for the sector to look at moving into new operating areas such as the private rental sector and even the property market, if only in very specific areas.

“I think in the past housing associations were basically told not to get above their station, but now there is a huge opportunity for us and a real need for us to do more,” Watt says.

“We are a well-resourced social business and we are already successfully providing a range of services across many communities in Northern Ireland – we have helped to develop, for example, play parks, community halls and provide debt and money advice services – and it is our hope that we can play an even bigger role in the future.”

Welfare reform cuts

However, he agrees that whatever ambitions local housing associations may harbour, they could be somewhat restricted by welfare reform cuts that are yet to be played out in the North.

Watt says the impact of public spending cuts and the current political uncertainty will undoubtedly be key issues to be debated during the NIFHA’s annual conference later this week in Cavan.