Shared Ownership Week 2024

Shared Ownership Week, a UK-wide event shining light on the need for alternative routes to homeownership, is taking place from 25 September to 1 October. To mark the event, the Minister for Communities, Gordon Lyons MLA, met with a Co-Ownership customer at Stormont this week to better understand how the organisation has had a positive impact on her and her family.

The customer, Jolene, bought her current home, a three-bed, semi-detached in 2003, with the support of Co-Ownership. Jolene’s two children were in primary school at the time, and she was determined to move to a home of her own that would provide stability for her family. Having been a customer for 21 years, Jolene explained to the Minister how shared ownership has been a lifeline for her, and that her monthly repayments remain more affordable than a full mortgage or market rate rent on a similar property.

Communities Minister Gordon Lyons said, “A home begins with a roof over someone’s head, but it extends far beyond that bringing long term social and economic benefits to people and communities. As the minister with the responsibility for housing, I am committed to helping more people and families to access good quality housing. As the recently issued draft Programme for Government outlines, we are committed to the provision of more affordable and sustainable housing. As Jolene’s experience details, Co-Ownership can play a crucial role in this delivery. My department is delighted to have supported her and the thousands like her across Northern Ireland who have benefitted from Co-Ownership.”

Part-funded by the Department for Communities, Co-Ownership is Northern Ireland’s regional shared ownership provider. Established in 1978, the organisation remains a key contributor in the affordable housing landscape. In the last 45 years, it has supported more than 33,000 people into homeownership.
The organisation’s most recent social impact report indicates that 82 per cent of the people who bought a home through shared ownership have experienced improved mental wellbeing. The report aligns to growing evidence that homeownership is a foundation for positive health and wellbeing.
Jolene echoed these findings and said, “I’ve been in my home for the last 21 years. I was living with family after my marriage ended. I wanted to give my children a stable home to grow up in that was close to my family who were helping with childcare. Co-Ownership was the lifeline I needed. My children are now in their 20s and have grown up and moved on, but the house has been filled with happy memories over the years, and will always be home to my children.”

Finding an affordable home in Northern Ireland has become more challenging in recent years, as property prices rise. As Mark Graham, the Chief Executive of Co-Ownership explains, “The year ending March 2023 saw the lowest number of housing completions in 60 years, proving that homeownership is not as affordable as it once was. Many people are stuck in the rental trap unable to save for a deposit, whilst others, particularly those on low incomes, are priced out of the market altogether. We’ve been living with higher interest rates now for two years and house prices have not fallen to reflect this increase in costs.”

Co-Ownership’s main shared ownership product is Co-Own. Successful applicants choose a home anywhere in Northern Ireland up to the value of £195,000. They buy the share they can afford, typically between 50 and 90 per cent, and Co-Ownership buys the rest. The customer then pays Co-Ownership a monthly rent on the share it owns. Bit by bit, if they become able to, customers can choose to increase their share until the own the home without Co-Ownership’s help.

Typically, customers purchase semi-detached and townhouses, with the average cost around £150,000. The average earned income of customers in 2023/24 was £26,399.

Mark concluded, “We exist to help people. Our shared ownership model works effectively here in Northern Ireland given the relative affordability of the housing market. Around 90 per cent of our customers go on to buy us out. In fact, in recent years, around half our customers bought us out within 10 years. Home ownership is the preference for most people here in Northern Ireland, as we have shown, shared ownership is the lifeline that an increasing number of people need to achieve that aspiration.”

Earlier this year, Co-Ownership announced Progressive Building Society as an additional no deposit lender alongside Danske Bank. Customers can borrow up to 100 per cent of the mortgaged share of their property providing more opportunities for people to overcome today’s market challenges and own a home of their own.