Social housing tenants now able to buy a stake of their home

A major change to the House Sales Scheme, which will enable social housing tenants to buy a share in their home, was announced today.

At present social housing tenants can only buy their houses in one lump sum. Many tenants, especially in this credit crunch era, cannot afford to do this. The scheme announced today by Social Development Minister, Margaret Ritchie MLA, will allow social tenants to buy their homes in stages.

Margaret Ritchie said: “The House Sales Scheme has enabled well over 100,000 sitting tenants to achieve their aspiration of being home owners. However, when I entered office I realised that many people wanted to get onto the property ladder, but simply could not afford to do so. Now many more can. ”

The Minister’s change, which was first proposed in her New Housing Agenda last February, consists of three main elements.

Firstly, eligible tenants will be able to purchase an initial stake of 25% instead of the current 100%, all-or-nothing approach. Secondly, these new owners will be able to purchase up to full home ownership in increments of 5%. Thirdly, tenants will be able to receive 70% of their available discount, when they purchase just half of their home.

The Minister concluded: “This change will help tenants who don’t have the means to enter into full home ownership, to enter into part ownership and eventually incrementally increase their share up to 100%. It is about improving the lot of people. That is what I’m about. That is what the New Housing Agenda is about.”

Notes to Editors:

1. Northern Ireland Housing Executive and Registered Housing Association tenants are allowed to buy their home from their landlord subject to meeting certain criteria, the key element of which is that they have had an initial five year tenancy.
2. This scheme has proved to be successful with over 115,000 Housing Executive properties and 2,500 Housing Association properties being purchased by sitting tenants.
3. However, home sales to tenants have fallen by 61% in the last four years – and indeed given the current “credit crunch” it may have fallen more this year. This fall is despite the fact that Housing Executive surveys among others, show that the appetite amongst social housing tenants to purchase their home remains high.
4. Currently tenants who want to buy their home, and who meet the criteria, must buy 100% of the property at the market price, which is determined by an independent professional valuer. This will now be changed.
5. A discount of up to £24,000 is also applied which is in recognition of the financial contribution the tenant made during their tenancy.
6. Media enquiries to Philip Maguire in DSD Information Office on 028 9082 9490, mobile 07788 108657. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.