The Economic Impact of
Social Housing Organisations
in Northern Ireland
RTPI Economic Planning Conference:
Tuesday 13th October 2015
Ian Wilson
with
Prof. David Robinson
Centre for Regional Economic and Social Research
Sheffield Hallam University
In this presentation
•
introduce the study
•
the economic impact of housing organisations in
Northern Ireland
•
factors influencing size of economic impact
•
potential benefits from increasing new builds
Introducing the study
The study
•
economic impact of social housing organisations in
Northern Ireland
•
commissioned by NIHE in 2014
•
impact of NIHE and HAs (including NI Co-Ownership HA)
•
focus on financial year 2012/13
•
encompasses all 'day to day' activities, including
providing new homes
•
economic activity stimulated directly and its flow through
the wider economy
Day to day activities: managing social housing
•
managing social housing = core function
•
role includes:
o
providing and allocating homes
o
repairs and maintenance
o
managing rental income
Number of homes managed in Northern Ireland
Day to day activities: house building
•
HAs responsible for the development of new social
and affordable housing
•
funded through:
o
reinvestment profits
o
Housing Association Grant (HAG)
o
private sector loans
1,735 units
completed
in 2013/14
Day to day activities: community investment
•
Social landlords increasingly become involved in
community investment activities
•
HE: led a number of specific schemes to promote
positive relations between residents
•
HAs: stakeholders expecting and demanding more
from landlords
•
= expanded remit to cover more than just housing:
'want to do it & business case'
•
can links with key Government policy agendas
What is Economic Impact Analysis?
•
demonstrates the economic contribution of an
organisation, industry or investment to a region/country
In-direct
ripple through
supply chain
=
Direct
by ind. itself
Induced
spending by
employees
Total
Economic
Impact
Output, GVA & Jobs
Why demonstrate economic impact?
•
respond to requests to demonstrate impact
•
gain external support
•
underpin case for housing and new building
•
baseline against which to assess change
•
gain an understanding of the industry
Evidence base
•
financial statements and annual reports
•
admin data held by DSD, NIHE and NIFHA
•
survey of HE and HA; questions covered: stock,
building, employment, income, expenditure and
neighbourhood investment
•
in-depth interviews with 3 case study HOs and
stakeholders such as DSD, NIFHA and
representatives from construction industry
The Economic Impact of Social Housing
Organisation in Northern Ireland
Jobs (1)
•
employ 5,989 employees at workplaces within NI
•
≈ 1 in every 135 employee or self employee jobs
•
contribute income tax receipts of just under
£13 million
•
4,796 FTE employees work within NI…
•
…producing an estimated £246 million in Gross
Value Added (GVA) for the Northern Irish
economy
Jobs (2)
Economic Impact on Northern Ireland
Direct
Impact
'Indirect'
Impact
Total
Impact
Output:
£millions
536
615
1,154
Gross Value Added:
£millions
246
214
460
4,796
10,640
15,436
Employment:
(FTEs)
Factors affecting economic impact
•
Income: level of gross expenditures
•
Procurement: regional sourcing
•
Composition of expenditure: multiplier effect
Income
Estimated to be £697
million, of which:
Procurement
£536.4 million
expenditure remaining
within Northern Ireland
•
recognise responsibility to local communities and
potential opportunities afforded to help deliver
economic, social and environmental objectives
•
e.g's of procurement policies and practices:
−
panels which include many local suppliers
−
assist local SMEs to meet criteria to get onto panels
−
social contracts: e.g. take on apprentices
Composition of expenditure
•
how organisations spend their money affects the
size of the multiplier effect (indirect impact)
•
construction, major repairs, refurbishment =
larger effect
The Construction
In-direct
£1.16
output expenditure
multiplier
=
Direct
£1
Induced
£0.31
•
Total
Economic
Impact
£2.48
financial and business services, transport/post/
telecommunications and labour costs = lower
effect
Composition of expenditure (2)
Potential benefits of increasing new
builds
New build and economic impact
£1 million additional funding ≈
•
11 new homes
•
total economic impact (direct and indirect)
o
output: £2.477 million
o
GVA: £831,000
o
26 FTE employees
Summary
Summary
•
social housing organisations are an important
component of local economies
•
total impact (direct and indirect) on the NI economy:
−
output: £1,152 million
−
GVA: £460 million
−
15,436 FTE employees
•
important to consider how decisions affect: income,
procurement and composition of expenditure
•
increasing capacity to build more homes will have
wider social and economic benefits
Thank you
Ian Wilson:
•
[email protected]
•
0114 225 3539