Report advises private financing of social housing

An independent regulator for social housing could be in place within six months, it was yesterday claimed as a study showed increased private financing of social housing schemes could take thousands off waiting lists.

The study, commissioned by the Cluid Housing Association, compared the financing of social housing in England and Canada. It was launched by Housing Minister Jan O’Sullivan.

Among its recommendations is that an independent regulator be appointed to assess and audit social housing associations.

In turn, it recommends greater use of private finance from lenders, including banks, instead of grants from central government.

The study outlines how the Government could instead provide leverage funding to a social housing association — for example, 30% of the total required — which would then be supplemented by finance from a bank or lender.

Cluid’s Head of Policy, Simon Brooke, said greater use of private finance in a regulated sector could open up more options to people.

“One of the key issues is giving lenders confidence in the borrowers. If there was a regulatory system in place it is harder for the banks to say no [to providing finance].”

Mr Brooke said he was also keen to see a greater transfer of Nama properties that could be used for social housing, but said one of the issues regarding some vacant properties was unsuitable location and poor quality of housing. He said he was hopeful the Government would look at the proposals.