Co-ownership: 83 people helped to buy homes in Antrim and Newtownabbey

In a presentation to the borough council’s Community Planning Committee on Monday evening, members heard that the scheme enabled the purchase of ten new-build and 73 existing properties.

This figure can be compared to 56 in Mid and East Antrim, 50 in Causeway Coast and Glens and 64 in Lisburn and Castlereagh council areas.

In Northern Ireland, 739 properties worth a total of £106m were purchased through Co-ownership during the same period. Of these, 57 per cent were semi-detached; 33 per cent, terrace/townhouses; seven per cent, apartments and three per cent, detached.

The average age of customers was 33 years. Ninety-four per cent were first- time buyers with an annual earned income of £24,577. Fifty-eight per cent were from the private rented sector.

Co-ownership was formed in 1978 as a housing association and to date has helped more than 32,000 people into home ownership. Currently, there are more than 10,000 co-owners. The scheme is regulated and part-funded by the Department for Communities.

Full Mortgage

Councillors heard that to be able to co-own, applicants must be able to access a mortgage for their share of the property. Co-ownership is suitable for those who need help with affordability to get a full mortgage or those who have an insufficient or no deposit.

The applicant chooses the property which is followed by an affordability assessment. The cost of rent is 2.5 per cent of Co-ownership’s share. The co-owner pays a mortgage on their share and is responsible for maintenance of the property. The home owner can buy out the entire property or in “chunks” of five per cent.

Mark Graham, chief executive, of Co-ownership, said: “There is a very wide range of housing challenges with increasing numbers of homelessness and people living in housing stress and the private rental sector becoming increasingly expensive.

“There are many more challenges for young people owning their own home than a generation ago. They will be older, will need longer to save for a deposit and will have financial help from family.

As a result, people opt for the private rental sector, which he said, can be “very expensive, cost more than a mortgage and can be insecure”. “People talk about not being able to decorate rooms the way they want or keep pets,” he commented.

He spoke of the difficulty in saving for tenants living in private rental accommodation. Mr Graham went on to say that 90 per cent of Co-ownership customers will buy out the property in full and half within five years.

He added that Co-ownership for over 55s was launched a year ago to help with a house purchase with the applicant putting in the equity from the sale of their home and Co-ownership buying the remainder.

Rent to own is an alternative route to home ownership which allows an opportunity to live in a house they want to make their home.

Michelle Weir, Local Democracy Reporter