Co-ownership rules

If you want to buy your first home, but cannot afford it without help, it is worth considering co-ownership.

There are rules about suitable properties and who is eligible to apply for the co-ownership scheme.

How does the scheme work?
Who can apply?
What can I buy?

How does the scheme work?

Co-ownership allows you to part-buy and part-rent your home. You must buy at least 50% of the value of the property, through a mortgage. You pay rent on the remaining value of your home.

There are 9 starter shares available for homebuyers, with a minimum of 50% and a maximum of 90%, in steps of 5%. You can buy as much as you can afford initially, up to 90% of the property value.

You can increase your share at once, in parts or not at all. This is known as “staircasing”.

Who can apply?

The co-ownership scheme is only open to applicants who are first time buyers on a low income. You cannot apply if your name was previously on a mortgage or on the title deeds for a house.

You must be over 18 and unable to afford the property on the open market, without the help of co-ownership.

What can I buy?

You cannot buy a Housing Executive or housing association property. Northern Ireland Co-ownership Housing Association (NICHA) must be able to value the property you apply to buy. If you want to buy a property built since 2000, it should be covered by the National House Building Council (NHBC) or Zurich 10-year warranty.

You can only buy a property worth less than £175, 000 in Northern Ireland. A property worth more than £175, 000 is not eligible for co-ownership purchase.