NI housing market given tax boost

A new way of buying a house has been unveiled

Stamp duty is to be axed for a year on properties costing less than £175,000 as part of a series of measures to help Northern Ireland's housing market.

This means the stamp duty threshold has been increased by £50,000.

The announcement was made on the same day a new scheme to help first-time house-buyers was launched in Portadown.

The project in Maghon Park is the first in the UK, which will see developers and housing associations shouldering 50% of the property's cost.

The 127 properties are former Army houses which have been refurbished by Portadown-based developers Turkingtons.

The 24 detached houses and 103 semi-detached - are up for sale with prices starting at £145,000.

Under the 'Own a Home' scheme, buyers will be able to purchase 50% of the value of the house through a 100% mortgage from Barclays.

The bank is to offer would-be buyers mortgages for the remaining half of the price without a deposit.

The developer will pay 25% of the cost, with the remaining 25% provided by either of two local housing associations - Clanmil Housing and the South Ulster Housing Association.

I want to see many more of these housing partnerships emerge in Northern Ireland so that more and more people can get on the property ladder Margaret Ritchie

The homeowner has the option of buying a greater share in the property from the developer and associations if and when they are ready.

Alternatively, they can resell their share on the open market.

The scheme will be launched on Tuesday by Stormont Housing Minister Margaret Ritchie.

"I very much welcome this innovative scheme, which sees a housing partnership between government, developers, housing associations and a lending institution," she said.

"It is good news for first-time buyers in Portadown, giving them a real opportunity to get on the housing ladder at this very difficult time.

"As part of the new housing agenda, I want to increase the supply of affordable housing. This scheme, a first in GB and Ireland, does that, but it is just a start.

"I want to see many more of these housing partnerships emerge in Northern Ireland so that more and more people can get on the property ladder."

The South Down assembly member said her officials were working to develop partnership schemes in other areas.

The commitment from Turkingtons represents the latest bid by a private developer to inject life into NI's ailing property market.

The recently formed Construction and Property Group, which is made of local property developers, contractors and builders, said that while they welcomed the move, one-off pilot schemes would not solve the crisis in the property market.

"We have called for direct discussions with the banks about making initiatives such as this more generally available," spokesman Brendan Cunnane said.

Last week, Fraser Homes cut £90,000 off homes in Glengormley in the greater Belfast area.

This led to a scramble for the 53 properties which all sold within hours of the advertisement being released.