Concern over significant drop in new home starts in latest Northern Ireland statistics

Chartered Institute of Housing (CIH) Northern Ireland has expressed alarm over the concerning drop in new home starts for the October to December 2025 period. This points to a deepening wastewater infrastructure capacity crisis that continues to hinder the much-needed construction of new homes.

The latest statistics, published by the Department of Finance, reveal that just 1,075 homes were started in the final quarter of 2025. This is a marked decline from previous statistics and represents the lowest figure of new starts since 2013, and a drop of almost a third (30 per cent) compared with the final quarter of 2024.

Georgia Knapp, policy and public affairs manager at CIH Northern Ireland, commented that the sudden decline in new home starts is deeply concerning, particularly as Northern Ireland faces a housing crisis, with demand continuing to substantially outpace supply.

“Alarm bells should be sounding for everyone in the housing sector as we look at the lowest number of new home starts since a post-recessionary period in 2013. Unfortunately, this downward trend may be a sign of things to come if action isn’t taken quickly - significant intervention is required to prevent a catastrophe in the housing sector in Northern Ireland,” Ms Knapp said.

CIH is part of the Wastewater Infrastructure Group, a coalition of housing, construction and business organisations calling for a long-term solution to Northern Ireland's wastewater infrastructure crisis. The group has renewed its call for a low-cost, progressive infrastructure levy, payable through the rates system, averaging £1.25 per household per week or £65 per annum.

“The Executive needs to start taking seriously the wastewater infrastructure capacity issues that continue to plague the sector and look at sustainable measures such a modest levy in order to unblock stalled housing projects,” she added. “This levy would create a sustainable, multi-year investment model for NI Water, enabling stalled housing, industrial and regeneration projects to proceed.”

Welcome improvement in home completions

In a more positive trend, Q4 showed the highest number of new home completions in three years, with 1,640 completed in this period. This is slightly higher than new home completions in Q4 2024 and indicates housing delivery following a growing trend of starts in recent years, and a constructive step towards addressing housing needs.

Ms Knapp commented: “While the figures relating to new home starts are alarming, the increase in new home completions is welcome, particularly after a slump earlier in 2025. However, delivery levels remain below what is required to meet Northern Ireland’s housing need.

“Sufficient capital investment for new social housing is essential to sustain an increase in overall housing supply. We urge the NI Executive and relevant departments to review capital allocations, streamline planning processes, and invest in vital infrastructure. We urge the Department of Finance to ringfence funding that addresses the true scale of housing need in Northern Ireland in upcoming budgetary allocations. The social housing waiting list has grown to almost 50,000 households, demonstrating that we must move beyond short-term targets and commit to funding a long-term approach that recognises housing as a foundation for health and wellbeing.”