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NEWS
NI housing output increases by 25.9%
Northern Ireland is entering 2026 with its strongest construction performance in a decade and a half, according to the latest findings from AECOM. Construction output rose 7.3% in the year to June 2025 to its highest level since 2010, outperforming the rest of the UK - with housing output rising by 25.9% - according to AECOM’s Ireland Annual Review 2026. The return of political stability in 2024 helped restore confidence and unlock stalled plans, providing the platform for the construction sector’s strong rebound, according to AECOM. Activity was driven in part by exceptionally strong repair and maintenance performance, now 55.8% above pre-pandemic levels, while housing output accounted for more than a third of total activity in Q2 2025. However, only one new social housing start was recorded over the year, said AECOM. With more than 49,000 households on waiting lists and
wastewater constraints blocking new development in Belfast, Newry and Derry-Londonderry, the Review stresses that NI cannot deliver on its 15-year housing strategy without systemic infrastructure reform. NI needs clearer long-term funding, collaborative delivery models, earlier supply-chain involvement, stronger public-sector capacity, a reimagining of public-private partnerships, and a faster planning process. Nick Perrin, AECOM, said, “NI enters 2026 from a position of real strength, with output, sentiment and sector performance all moving in the right direction. NI’s potential for growth is significant, and it must seize this dynamic moment and make the most of the opportunities ahead.”
Nick Perrin, Head of Infrastructure, Surface
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Transportation, Aviation and Ports, UK & Ireland, AECOM.
www.aecom.com
Survey highlights key challenges
Planning, rising build costs and access to land and finance are among significant obstacles threatening national targets to build new homes, according to the FMB Small House Builders’ Survey 2025. Providing a comprehensive breakdown of the challenges facing small, local housebuilders, the Survey identifies the planning system as the top barrier for 47% of respondents. Material costs follow closely at 41%, reflecting ongoing inflationary pressures, while land availability is a persistent issue - with 33% reporting a lack of available sites and 31% saying available land is often financially unviable. FMB has published a free guide, Becoming a small housing developer: Advice and guidance from others in the new homes industry. Insights include: Finding land: What to look for and how to build the local networks that can help you
find the perfect plot. Finance: Understand how to structure funding for your project and explore the range of finance options available to small- or medium-sized building companies. Planning and regulations: Discover how the planning system works for new builds, what to expect from building control and how to navigate key legal requirements. Site management: Find out what makes a well-run site from managing trades and suppliers to meeting safety and quality standards. Tackling the topics: Proposals for building zero-carbon sustainable homes and adopting modern methods of construction on a smaller scale.
www.fmb.org.uk/resource/fmb-house-builders-survey-2025.html www.fmb.org.uk/resource/guide-to-becoming-a-small-housing-developer.html WANT TO KNOW MORE?
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