Northern Ireland has launched its first build-to-rent-style affordable rent scheme for lower income households.

Communities Minister Gordon Lyons announced an initial £61.5 million investment in partnership with housing provider Maple and May that will see 300 high‑quality, long term private rented homes built in Dungannon.

Further developments to follow this financial year will be in Newry, Craigavon, Lisburn and Londonderry, and other locations, including Belfast, are planned in future years. The firm will leverage a further £10.8 million in private capital finance and £50 million in private revenue finance, bringing total investment to £122 million.

Maple and May will offer discounted rents – 20% below local market rents – with eligibility based around household income: up to £30,000 net for a single adult household, and £40,000 net for a two-adult household. Features include tenancy agreements of up to five years and flexible deposit options.

Landmark

Lyons heralded the landmark initiative for Northern Ireland and believes it has the potential to be truly transformational.

“It is part of a dynamic delivery programme set out in the Housing Supply Strategy to ensure that everyone has access to a good quality, affordable and sustainable home that is appropriate for their needs and is located within a thriving and inclusive community,” says Lyons (pictured with Deirdre Steele, head of Maple and May.) “Over time, as we increase the number of homes for affordable rent, it will reduce pressure on the social housing waiting list.”

Scrutiny

Northern Ireland’s PRS is under scrutiny and braced for future reforms that could see notice periods increased to as much as seven months if the tenancy has existed for more than eight years, as part of a government consultation. Meanwhile, shortage of supply has seen rents rise rapidly; HomeLet’s rental index for March showed that the strongest annual increases in the UK were seen in the country - +4.9%.

Similar models exist elsewhere in the UK such as London Living Rent which offers below-market rents, longer tenancies and is aimed at households who earn too much for social housing but cannot afford market housing. Rents are linked to local incomes and tenants are encouraged to save towards home ownership.

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