Co-Ownership and Affordable Housing Derry and Strabane Environment and Regeneration Committee 11 th September 2019
About Us • Formed in 1978 as a Registered Housing Association • Regulated and part funded by the Department for Communities • Charity registered by the Northern Ireland Charities Commission • Helped 28,000 households into home ownership • Over 8,800 homes co-owned
Home Ownership and Millennials 4/15/84 4/15/86 4/15/88 4/15/90 % of families owning their own home in Northern Ireland 4/15/92 4/15/94 25-34 10/15/95 10/15/96 10/15/97 10/15/98 Source: Resolution Foundation 10/15/99 35-44 10/15/00 10/15/01 10/15/02 since 1984 10/15/03 11/15/04 45-54 11/15/05 11/15/06 11/15/07 11/15/08 11/15/09 55-64 11/15/10 11/15/11 11/15/12 11/15/13 11/15/14 65+ 5/15/15 11/15/15 5/15/16 11/15/16 5/15/17 20 30 40 50 60 70 80 90
Housing Options Social Housing Private Rented I want a home. I am currently employed & my annual Shared Ownership earnings are less than £26,000. Home Ownership
Affordability
The Customer Journey Applicant Leaseholder Homeowner • Applies • 99 year • Can buy out Online lease the entire property or • Affordability • Rent is • Can buy out assessment 2.5% of the unowned in 5% • Chooses a share tranc hes property up • Applicant to £165k share by • Takes way of a between 50- mortgage 90% share
Co-Ownership Customers Age Profile 32% 27% 17% 9% 6% 5% 4% <=22 23-27 28-32 33-37 38-42 43-47 >=48
Household Composition 39% 22% couples 29% couples with 9% single single children parents persons
Previous Homes Social Housing tenant 1% Renting from a private landlord 49% Living with friends/family 50%
Impact of Co-Ownership "We lived in a rental property for 8 years. As we have 3 children, we found it impossible to save a deposit to buy a home. We both only work on temporary contracts so most banks wouldn't offer us a mortgage We didn't work with a financial adviser, we did it all ourselves. We went to an open evening at Co-Ownership and gathered lots of info and were helped immensely by the advisers there. We found the Co-ownership process extremely straight forward and we had a quick response. We bought a brand new home, which has been amazing! Co-ownership were great and supportive through it all. When we finally got our keys and came through our front door, it was the most incredible feeling, knowing that it was ours! It instantly felt like home and our children loved it too. When we rented privately, we always worried that one day our landlord would sell. Now we don't ever have to worry about that. This is our forever home and we would never have been able to do it without Co- ownership!!“ - Jennie
Impact on the Northern Ireland Housing Market 2018/19 Value of the properties 41% new build purchased £128m 10% of the first time buyer market
Co-Ownership Purchases 2018/19 Council Area Share Armagh City, Banbridge & Craigavon 17% Belfast 15% Ards & North Down 14% Lisburn & Castlereagh 12% Newry, Mourne & Down 10% Mid Ulster 9% Antrim & Newtownabbey 9% Mid & East Antrim 7% Causeway Coast & Glens 4% Derry City & Strabane 4% Fermanagh & Omagh 1%
Property Locations Derry and Strabane Council 2018
Derry and Strabane Figures • At the end of December 2018, there were a total of 364 Co-Ownership homes in Derry City and Strabane council • Over the last 5 years, 101 households purchased a home through Co- Ownership in the Derry City and Strabane council area. • During 2018, the average purchase price was £133,741. Co-Ownership Purchases in Derry and Strabane (2014-2018) 2014 2015 2016 2017 2018 New build properties 12 6 3 5 14 Existing properties 13 14 10 13 11 Total 25 20 13 18 25
Who Property Rent Buy Funding Buy with a Initial deposit mortgage or of £2,500 Co- Cannot Ownership obtain a £12.5 million mortgage New build loan from now but may house up to government be able to £165,000 for 80 within a properties 20% on the reasonable Market rent – rent paid as time 1 year min a and 3 year contribution max to a deposit
Shared Ownership for Over 55s “Shared ownership without a mortgage”
Affordable Housing Definition Social Housing Affordable Housing Intermediate Shared Housing Ownership
Local Development Plans and Affordable Housing Sustainable communities Mixed tenure development Capture of planning gain Access to land
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