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WASTEWATER INFRASTRUCTURE IS THE HIDDEN BARRIER HOLDING BACK NORTHERN IRELAND’S CONSTRUCTION INDUSTRY, WRITES FEDERATION OF MASTER BUILDERS NI DIRECTOR GAVIN MCGUIRE… Investment fundamental to housing delivery
For years, the construction industry has warned that underinvestment in wastewater infrastructure would become one of the greatest barriers to building the homes Northern Ireland needs. A new report, Wastewater Constraints and the Cost of Delay in Northern Ireland: An Economy with the Brakes On, confirms those concerns in stark terms. The report estimates that around 55,000 new homes are currently unable to proceed because wastewater treatment capacity has been exhausted in many parts of NI. Without significant investment, it also warns that the region’s economy could be £10.9bn smaller in annual Gross Value Added terms by 2040. What does on-site reality look like? For the Federation of Master Builders (FMB) NI, the findings come as little surprise. Our members have been highlighting the growing impact of wastewater constraints for several years, as viable housing developments are delayed or abandoned despite strong demand for new homes. While the debate often focuses on housing supply, the consequences extend much further. For SME builders, delays to wastewater connections create uncertainty, increase project costs and disrupt cashflow. Businesses are forced to postpone investment decisions, recruitment plans and apprenticeship opportunities while waiting for infrastructure that should already be in place. The impact is particularly severe for smaller construction firms, which often lack the financial resilience to absorb prolonged delays. Every stalled development affects not only the builder but also subcontractors, suppliers, manufacturers and local communities that depend on a healthy pipeline of construction activity. The wider economic implications are
“Investment in wastewater infrastructure is no longer optional, it is essential.”
equally significant. Northern Ireland continues to face acute housing pressures, with rising house prices, increasing private rents and tens of thousands of households waiting for social housing. Without adequate wastewater capacity, even sites with planning permission can remain undeveloped, preventing the delivery of much-needed homes and limiting wider economic growth. What solutions are needed? Addressing this challenge requires more than short-term fixes. Northern Ireland needs a long-term investment programme that gives NI Water the resources and certainty to upgrade ageing infrastructure and increase network capacity. FMB Northern Ireland has also consistently raised concerns about proposals that would place a greater share of investment costs on developers through additional levies or charges. While developers and builders have a role to play, increasing the cost of development risks making many housing schemes financially unviable, particularly at a time when construction costs remain high and affordability is already under pressure. Instead, we believe sustainable funding solutions must be developed that
recognise wastewater infrastructure as essential public infrastructure. Investment in wastewater networks is not simply a utility issue, it is fundamental to housing delivery, economic development and the long-term prosperity of Northern Ireland. The findings of this latest report should act as a catalyst for action rather than another warning that goes unheeded. Every year of delay increases costs, restricts housing supply and limits opportunities for businesses across the construction sector. The construction industry stands ready to deliver the homes Northern Ireland urgently needs. Unlocking that potential will require government, industry and infrastructure providers to work together to remove one of the most significant barriers to growth. Investment in wastewater infrastructure is no longer optional, it is essential.
T: +44 (0)28 9446 0416 E: fmbni@fmb.org.uk www.fmb.org.uk - www.findabuilder.co.uk Want to know more?
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