Building more social housing plays a major factor in bolstering a faltering economy, according to a leading Northern Ireland university economist.

Mike Smyth, from the University of Ulster, has produced significant evidence that investing in social house building can make a significant difference in an economic downturn.

Mr Smyth said house building creates more jobs than other forms of capital investment.

For every ten jobs created by building social housing, seven jobs will be created or sustained elsewhere in the Northern Ireland economy, according to his report.

Land and construction costs have all fallen sharply making this a good time to invest more in social housing, he explained, adding housing investment also reduces housing stress, homelessness and fuel poverty.

-- Advertisement --

Mr Smyth suggested investment in social housing counters deprivation and fuel poverty, and thereby takes pressure off budgets for health, education and crime reduction.

He said: "Social housing has strong multiplier effects in terms of employment and has greater short-term impact on the Northern Ireland labour market than other construction investments. This is due to a higher labour-intensity in house building activity.

"Social housing has strong non-monetary impacts on the economy and contributes more than some other types of capital investment programmes to the achievement of sustainable development."

Social Development Minister Margaret Ritchie said: "If we do not revise our spending priorities while this economic downturn persists, housing need will keep growing and the construction industry will continue to shrink.

"The world has changed in the time since the Executive agreed a budget. Other governments have responded to these changes by channelling additional resources into house building," she said.

"The University of Ulster paper supports the case I have been making at the Executive table. I hope Executive and Assembly colleagues will read this paper and support its recommendations."

(PR/JM)