1 March 2006
HANSON EASES THE STRAIN FOR FIRST-TIME HOME BUYERS
Measures to make home ownership more affordable for first-time home buyers were announced today.
The Minister for Social Development, David Hanson MP, said: "I am keenly aware that soaring property prices in recent years are making it difficult for increasing numbers of people on lower incomes to buy a home of their own. The Co-Ownership Scheme has traditionally played a significant role in overcoming such affordability barriers and I am pleased to announce a series of changes to the Scheme that, together, are designed to make access to home ownership possible for more people on lower incomes.
"The basis of calculation of the Co-Ownership rental will reduce from 3.5pc to 2.75pc. As a result a typical Co-ownership home buyer with a £110,000 property acquired on a 50:50 basis will see their monthly rent reduce from £160 to £126. The professional fees associated with buying a home through Co-Ownership are also being reduced from £400 to £250.
"I am mindful of home buyers who have already purchased their home with Co-Ownership and have therefore similarly reduced their rental payments. These changes will take effect from 1 April 2006.
"I have also asked for a review of the price limits that apply to property eligible for purchase through Co-Ownership. These are currently set at £115,000 for Greater Belfast and Londonderry and £102,500 for the rest of Northern Ireland. But prices have increased sharply in this sector of the market and I have therefore asked officials to review the price limits to make them more reflective.
"This should further address the problems of affordability that have been a barrier to many people buying a house of their own."
Nineteen thousand households have been purchased through Co-Ownership over the past 28 years across Northern Ireland and more than half a billion of public and private funds has been invested. It is estimated that the scheme has touched the lives of one in five of the population.
In recognition of this success, Government increased its funding by £23million over the three year period to 2008 to provide almost £39million and this will help support around 2,400 applicants over this period.
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