Scheme shuts door on home buyers

Thousands of affordable homes are planned

Northern Ireland's co-ownership housing scheme cannot meet the demand for people who want help to buy a home.

No new applications can be accepted because demand is far greater than its current £15m funding, Alan Crowe of NI Co-Ownership Housing Association said.

This is despite government plans to provide £205m for social housing over the next three years.

The Department of Social Development said NICHA had been a "tremendous success" but had to stay within budget.

Mr Crowe said he felt "frustrated and disappointed" at the situation.

He said confirmed funding of £15m from the Department for Social Development for the 2008/09 financial year was "simply not enough to meet any further applications for co-ownership".

This was despite the recent announcement that over the next three years £205m would be made available for social housing, together with a series of changes aimed at enhancing the successful co-ownership scheme.

Crisis plans

In February, Social Development Minister Margaret Ritchie announced plans to extend the co-ownership scheme.

Currently applicants have to purchase a minimum 50% stake, under the new plans applicants would only have to buy a 25% stake

She also announced plans to abolish the capital value limits applying to existing co-ownership schemes, making it easier for applicants to join and purchase a stake in their homes.

Ulster Unionist assembly member Fred Cobain who is on the social development committee said the closure of the scheme to new applicants was yet another blow to those in need of decent housing.

"We are looking for 3,000 social homes each year. We are going to get 1,500. On top of a desperate housing need in NI, the situation is going to get worse," he said.

Since it was set up in 1978, NICHA has helped thousands of people who can't afford to buy their own home outright to get onto the property ladder.