SDLP Opposition Communities Spokesperson Mark H Durkan MLA has warned that a reduction in the housing grant provided to Housing Associations will result in fewer new homes being built across Northern Ireland.

His comments follow confirmation from Communities Minister Gordon Lyons that the grant will be reduced from 54% to 46% of the total cost of constructing a home — a move that has raised concerns among housing bodies and opposition representatives.

Mr Durkan criticised the Minister's decision, questioning the lack of consultation with key stakeholders ahead of the announcement and warning of its potential impact on housing delivery and maintenance.

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Foyle MLA Mark H Durkan said: "The Minister has announced this decision without proper consultation with the sector and has utterly failed to articulate how this will lead to the construction of more social homes. Yet again, we are seeing an Executive Minister off on a solo run, convinced they know best despite warnings that this decision could lead to projects collapsing altogether.

"This news is particularly disappointing given the lack of progress in empowering the Housing Executive to build the social homes we need. In stark contrast to an Executive that is missing the housing target set out in its own Programme for Government, Housing Associations are delivering homes in an extremely difficult climate. It’s hard to see how cutting their funding will achieve anything other than fewer homes being built.

"This cut will also impact the ability of Housing Associations to maintain existing properties and could lead to a situation where homes become inhabitable due to a lack of investment. This is the last thing we want to see with our social housing stock under such pressure."