Northern Ireland has seen its co-ownership property value limit rise to £190,000 in a move by the Department for Communities.
The property value limit is the cap on the value of a property that can be purchased through co-ownership, and applies to co-own, rent to own and co-own for over 55s schemes. The previous property value limit was £175,000.
Currently, £158m of funding has been approved for the Co-Ownership Housing Association to support over 4,000 households into home ownership by 2024, according to the department.
The association has operated since 1978, is regulated by the government department, and is its main delivery partner for affordable shared ownership housing in the region.
Its rent to own product allows homeowners to choose a new build house in Northern Ireland up to the property value limit. The association will buy the property and rent it to the homeowners for up to three years, with the owner able to purchase it any time after the end of the first year.
The department says £8m of further funding has been provided to support the co-own for over 55s scheme, which opened for applications in June. This product is based on a shared ownership model and is for people who want to move to a more suitable home that meets their needs as they age, but can’t afford to do so on their own.
The body says 93% of co-ownership purchases in 2021/22 were made by first-time buyers, adding that 46% of these buyers came from the private rented sector.
The average house price in Northern Ireland was £169,063 in the second quarter of this year, a 9.6% rise on the same period in 2021, according to the Northern Ireland Statistics and Research Agency’s latest Northern Ireland Housing Bulletin.
Communities Minister Deirdre Hargey says: “I want to ensure people and families can access good quality, affordable housing. Shared ownership can provide an alternative to the private rented sector. It is important that the option of shared ownership is open to as many people as possible.”
Co-ownership chief executive Mark Graham adds: “This renewed property value limit remains ahead of the average house price in Northern Ireland so we’re confident that this change will have a positive impact on incoming applicants.
“We have helped over 30,000 people to date and year on year we are responsible for around 10% of the FTB market indicating the continued need for alternative routes to home ownership.”
NAEA Propertymark President Stephen McCarron says: “With house prices and rents rising considerably in recent months, we are pleased to see that this is being reflected in the co-ownership schemes loan value.
“By introducing this change at a time where some are feeling the pinch of the cost-of-living crisis and rising interest rates, the Northern Ireland Executive will be able to continue to encourage those looking to get onto the housing ladder to do so.”
