What waterway delays means for builders
A new report reinforces what we've been saying for years at the FMB about the impact of wastewater infrastructure on Northern Ireland's construction industry. Here's what builders need to know:
- The report warns that wastewater constraints are delaying around 55,000 new homes across Northern Ireland and holding back economic growth.
- Delays to wastewater connections can increase costs, disrupt cashflow and make it harder for SME builders to plan, recruit and invest.
- We continue to call for long-term investment in wastewater infrastructure, rather than placing more costs on developers and homebuilders.
- We are working with government and industry partners to push for practical solutions that unlock housing delivery and support local building businesses.
Thousands of new homes across Northern Ireland remain on hold because the wastewater network cannot support new connections. For local builders, that means delayed projects, rising costs and fewer opportunities to grow. A new report, Wastewater Constraints and the Cost of Delay in Northern Ireland: An Economy with the Brakes On, reinforces what FMB Northern Ireland has been warning for years: without significant investment, wastewater infrastructure will continue to hold back the construction industry and the wider economy
Without significant investment in wastewater infrastructure, Northern Ireland's economy could be £10.9 billion smaller in annual Gross Value Added (GVA) by 2040.
At the Federation of Master Builders (FMB) Northern Ireland, we welcome this important report and fully supports its clear conclusion: urgent investment in wastewater infrastructure is essential if we are to unlock housing delivery, support economic growth and create thriving communities.
At the report launch, our FMB Northern Ireland Director and Regional President met with industry leaders and policymakers to discuss the growing impact these constraints are having on SME builders and the wider construction sector.
For years, we’ve warned that continued underinvestment in wastewater infrastructure would become one of the biggest barriers to building homes across Northern Ireland. Sadly, those warnings are now becoming reality.
Three findings every builder should know
- Around 55,000 homes are currently unable to proceed because of insufficient wastewater treatment capacity.
- Housing shortages are driving up house prices and rents while contributing to record levels of homelessness.
- Businesses are delaying investment, limiting job creation and reducing economic growth across multiple sectors.
With more than 50,000 people on the housing waiting list, rents rising faster than anywhere else in the UK and housebuilding at some of its lowest levels in decades, Northern Ireland can no longer afford to delay.
What this means for your building business
For FMB members, predominantly small and medium-sized local builders, the impact is immediate. Many are ready to build, recruit apprentices and invest in their businesses, yet developments are being stalled because the infrastructure simply cannot support new connections.
These delays create uncertainty, increase costs and place disproportionate pressure on smaller firms that cannot absorb lengthy planning and development delays. The consequences extend beyond construction, affecting local employment, supply chains and the delivery of much-needed homes.
What needs to happen next
Northern Ireland needs a long-term, properly funded investment plan for wastewater infrastructure that reflects the scale of the challenge. Without it, communities will continue to miss out on homes, economic opportunities and sustainable growth.
This report also reinforces concerns we've previously raised about proposals to place more of the cost of wastewater investment on developers rather than addressing the underlying funding challenge. You can read our earlier response to the proposed developer wastewater levy here.
We also believe that proposals to recover additional funding solely through increased developer charges risk making an already challenging situation even worse. Further costs on development will not solve the underlying infrastructure deficit and could reduce the number of viable housing schemes.
A more sustainable solution is required. The proposed £65 annual household wastewater charge, applied to those who can afford to contribute, would provide NI Water with a predictable income stream against which it could borrow to fund the major infrastructure investment Northern Ireland urgently needs.
The choice is clear. Continuing to do nothing carries a far greater cost than acting now. Investment in wastewater infrastructure is an investment in new homes, stronger businesses, skilled jobs and Northern Ireland's long-term prosperity.
What builders can do now
While long-term investment will require government action, builders can:
- Factor potential wastewater constraints into project planning and discussions with clients
- Check local capacity issues as early as possible when assessing development opportunities
- Keep records of delays and additional costs caused by wastewater constraints
- Continue sharing experiences with us here at the FMB to strengthen our evidence when we meet government and policymakers. Join the conversation in our FMB community online via the App or contact me at gavinmcguire@fmb.org.uk.
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