Many hundreds of much-needed new houses for those unable to afford full mortgage payments and for dwellings for people with mental health and learning disabilities are not going to be constructed in Northern Ireland if the proposed N I budget is accepted.

The developments are at risk if the 2008 draft budget is approved, a leaked NI Housing Executive (NIHE) document has warned.

The Co-Ownership scheme would also be facing problems, the internal NIHE document has said.

Co-ownership, a scheme which has helped thousands struggling with high property prices onto the first rung of the housing ladder, is threatened, with the development resulting in waiting lists rising and the number of homeless people increasing as plans for over 1,500 planned dwellings are jeopardised.

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In addition, thousands of householders with disabilities may not have lifeline adaptations carried out on their existing properties.

Commenting, Ray Cashell, Chief Executive of SHAC, a housing association in Belfast, said: "We are the soft target for a reduced budget. The housing associations are particularly miffed as we draw in a lot of private money in mortgages and none of the other public agencies can do this."

The NIHE dossier warned strategies tackling dire housing need in areas like north, west and east Belfast, Londonderry, Lisburn and Dungannon would be affected.

A total of £54.3m would be available under the draft budget for next year - not enough for many of the new homes that have been planned.

(BMcC)