SLIDE 1 Co-Ownership and Affordable Housing
Derry and Strabane Environment and Regeneration Committee 11th September 2019
SLIDE 2 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
SLIDE 3 20 30 40 50 60 70 80 90
4/15/84 4/15/86 4/15/88 4/15/90 4/15/92 4/15/94 10/15/95 10/15/96 10/15/97 10/15/98 10/15/99 10/15/00 10/15/01 10/15/02 10/15/03 11/15/04 11/15/05 11/15/06 11/15/07 11/15/08 11/15/09 11/15/10 11/15/11 11/15/12 11/15/13 11/15/14 5/15/15 11/15/15 5/15/16 11/15/16 5/15/17
% of families owning their own home in Northern Ireland since 1984 Source: Resolution Foundation
25-34 35-44 45-54 55-64 65+
Home Ownership and Millennials
SLIDE 4 I want a home. I am currently employed & my annual earnings are less than £26,000.
Social Housing Home Ownership Private Rented Shared Ownership
Housing Options
SLIDE 5
Affordability
SLIDE 6 The Customer Journey
Applicant
Online
assessment
property up to £165k
between 50- 90% share Leaseholder
lease
2.5% of the unowned share
share by way of a mortgage Homeowner
the entire property or
in 5% tranches
SLIDE 7
Co-Ownership Customers Age Profile
6% 27% 32% 17% 9% 5% 4%
<=22 23-27 28-32 33-37 38-42 43-47 >=48
SLIDE 8
Household Composition
39%
single persons
22% couples 29% couples with
children
9% single
parents
SLIDE 9 Previous Homes
Living with friends/family 50% Renting from a private landlord 49% Social Housing tenant 1%
SLIDE 10
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
SLIDE 11
Impact on the Northern Ireland Housing Market 2018/19
Value of the properties purchased £128m 10% of the first time buyer market 41% new build
SLIDE 12 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%
SLIDE 13
Property Locations Derry and Strabane Council 2018
SLIDE 14 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
SLIDE 15 Who
Cannot
mortgage now but may be able to within a reasonable time
Property
New build house up to £165,000
Rent
Initial deposit
Market rent – 1 year min and 3 year max
Buy
Buy with a mortgage or Co- Ownership 20% on the rent paid as a contribution to a deposit
Funding
£12.5 million loan from government for 80 properties
SLIDE 16
Shared Ownership for Over 55s
“Shared ownership without a mortgage”
SLIDE 17
Affordable Housing Social Housing Intermediate Housing Shared Ownership
Affordable Housing Definition
SLIDE 18 Local Development Plans and Affordable Housing
Sustainable communities Mixed tenure development Capture of planning gain Access to land
SLIDE 19
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