Housing Minister Margaret Ritchie has pledged to help the vulnerable in her budget for the next financial year, despite a 'serious' shortfall in spending power.

Speaking to the Social Development Committee, the minister highlighted a very serious situation, with an estimated shortfall of around £100m in each of the next two years.

The shortfall has come about as a result of social house sales virtually ceasing due to the collapse in capital receipts from the sale of Housing Executive houses.

Receipts from land sales have also dropped dramatically, and all of this has resulted in a major shortfall in the housing budget.

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Ms Ritchie though has pledged to look after the vulnerable, while concentrating next year on building new homes.

She said: "I cannot stress enough the seriousness of this situation - an estimated shortfall of around £100m in each of the next two years is massive. But my first priority will always be to look after the most vulnerable in our society."

The minister emphasised that other schemes would have to be re-profiled.

"As I want to keep the newbuild programme credible, unfortunately there will be little money for multi-element housing improvement schemes, other capital works and private sector grants, or for new initiatives such as a new mortgage rescue scheme," she said.

"But we will try and keep newbuild on track. If I have to make a choice between giving someone a new kitchen or a roof over their head - when there is not enough money to do both - I have to help those who are desperately in need of housing."

(PR/JM)