The government will need to pay out more than £6m to cover the local authority housing deficiency in the 2019-20 financial year.
Onchan MHK Rob Callister asked in this week’s Tynwald sitting how much the Department of Infrastructure was providing local authorities to cover housing deficiencies.
Douglas, the island’s largest authority with over 2,300 properties, is estimated to need £1,415,042.
Mr Callister said he believes that this figure, up from £246,949 in the 2017-18 financial year, represents the cost of housing improvements the council is undertaking.
Infrastructure Minister Ray Harmer said: ’The shortfall between the rental income and cost of provision of services is the housing deficiency.
’The figures provided are the department’s estimate as at December 2018.’
Minister Harmer MHK said in his written reply that as of December 2018, it is not expected that Onchan will require a housing deficiency payment, the only authority listed as not requiring funding.
In the 2017/18 financial year, Onchan is believed to have required £10,273.
Mr Harmer added that the estimates include revisions to the anticipated rental income and changes to the expected capital programme.
Another two local authorities in the island are believed to require more than £1m in deficiency payments – Ramsey and Peel and Western.
Ramsey is estimated to need £1,191,835 to cover its deficiency while Peel is estimated at £1,113,472.
This is an increase of more than £500,000 from the 2017-18 financial year.
However, since then the authority has paid towards the new Mylchreest Court sheltered housing accommodation.