Water infrastructure issues are taking their toll on residential development with notable disparities across sectors

Northern Ireland’s acute housing crisis shows no sign of abating, as revealed by a new report from Construction Information Services (CIS), a leading provider of verified, real-time construction intelligence. Covering data up to Q3 2024, the report highlights significant challenges in the region’s residential sector, including a concerning drop in housing completions and ongoing infrastructure bottlenecks.

2024 has seen slower progress compared to previous years. In the first three quarters of the year, a total of 2,778 housing completions were recorded, well below historical levels. This marks a continuing decline from the 5,373 in 2023, exacerbating the growing housing demand.

CIS Commercial Director, Dave Thompson says: “NI Water, the public body that maintains our water supply and infrastructure, has said that limits to its funding mean that it can’t provide the infrastructure to support the strong demand for housing developments. We have seen the impact that these issues have had in Q1/Q2/Q3 2024 with significant reductions in housing activity.”

“Key regions have been particularly affected. In the first half of 2024, Belfast, one of the most critical areas for housing supply, experienced 266 completions – well below the required levels to meet ongoing demand.”

“If this current pace continues for the remainder of 2024, it will mark another challenging year for the housing market. This continued decline could impact home availability, particularly in key urban centres. These issues, largely driven by under-investment, have limited the region’s capacity to meet housing demand, particularly in high-demand regions like Belfast, Antrim and Newtownabbey.”

Total completions in 2024 are projected to fall significantly short of 2023 levels, marking the fifth consecutive year of declining residential completions.
NI Housing Completions by District Council

The data reveals a significant imbalance between private and social housing completions across Northern Ireland, which could have significant implications for meeting the diverse housing needs across the nation. The CIS report underscores a persistent gap between private and social housing completions. In Q3 2024, 5,509 private units were completed, compared to just 501 social units. This gap highlights the limited availability of affordable housing for lower-income groups.

Dave Thompson said: “Addressing the shortfall in both social and affordable housing is critical – particularly as demand for low-cost homes continues to rise. Without a greater emphasis on both of these areas, Northern Ireland will struggle to meet the current housing demand, particularly as economic pressures intensify.”

The report also highlights a disparity between apartment and housing completions. Although apartment completions have generally grown year-on-year, albeit with some fluctuations, they remain significantly lower when compared to other housing completions. The apartment sector experienced a decline in 2023, however, the first half of 2024 has shown positive signs of recovery and if this trend continues, apartment completions are set to surpass 2023 levels.

“The slower pace of apartment completions poses a significant risk to urban housing supply,” says Dave Thompson. “While rural and suburban areas, where houses dominate, are seeing more consistent growth, developers continue to struggle with securing approvals and the necessary infrastructure for high-density housing developments.”

As urban areas continue to experience rising demand for high-density housing, the lag in apartment completions risks exacerbating housing shortages in these areas. Addressing these disparities is essential to ensure a balanced housing supply that meets the diverse needs of both urban and rural populations.

Comparing Quarters: 2024 first half snapshot

• Q1 2024 saw 1,262 units completed, with houses accounting for 1,082 units and apartments for 180.
• Q2 2024 followed with 1,516 completions, with houses contributing 1,291 and apartments 225.

The CIS report highlights key players in Northern Ireland’s housing market, including Kelly Brothers Building Contractors, Hagan Homes, Hilmark Homes, Lotus Group, and Windsor Developments. Despite the significant contributions from these key developers the region continues to struggle with housing supply due to water infrastructure constraints. This ongoing issue is limiting the overall capacity to meet the growing housing demand across Northern Ireland, highlighting a critical barrier to residential development progress.

The Republic of Ireland has managed to maintain momentum in delivering housing, despite falling short of targets, thanks in part to government incentives such as fee waivers and water rebates for developers.

Construction Information Services (CIS) has been providing reliable, verified, and real-time insight and intelligence on the Irish construction sector for more than 50 years. ​

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