The increase will raise the current value from £175,000 to £190,000 and will take effect from 21 September 2022. The changes will also apply to the Co-Own, Co-Own for Over 55s and Rent to Own schemes.
The scheme has helped over 30,000 people to date by allowing them to buy a new build property on a shared ownership basis, paying rent for the portion owned by Co-Ownership, the Northern Ireland’s Executive’s charitable delivery partner.
In recognition of the challenging and uncertain economic situation, the change will mean that the threshold remains higher than the average house price in Northern Ireland.
The scheme is responsible for around 10 per cent of the first buyers' market in Northern Ireland. Rents due under the scheme are considerably cheaper than those in the PRS, with the rent on 50 per cent of a £120,000 property being £125.
Stephen McCarron, NAEA Propertymark President comments:
“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.”
Buyers using the scheme can purchase further shares in their property in five per cent increments in the future, reducing the rent payable. While they are encouraged to do so, there is no obligation to buy further shares in the property at any point, and the properties are rented to buyers on a 99-year lease.
