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Northern Ireland’s government has announced it will hand a homeownership-focused housing association an extra £13m in funding.
Co-ownership Housing will use the money to purchase 422 homes for shared ownership for first-time buyers.
Now back in post after a period out through illness, communities minister Deirdre Hargey said the move reflects an increase in demand for the product.
The funding is in addition to a £145m four-year package for Co-ownership announced by interim minister Carál Ní Chuilín in November.
It will be provided in the form of financial transactions capital (FTC), used by Northern Ireland’s government to provide low-cost loan finance or equity investment for infrastructure projects delivered by the private sector.
Last summer, Co-ownership reported a surge in applications for its shared ownership product amid the coronavirus pandemic, thought to be linked to lenders withdrawing low-deposit mortgage products as a reaction to the economic impacts of the pandemic.
The Department for Communities said the association is still seeing higher applications than usual.
Ms Hargey said: “I understand that recent moves by lenders to tighten lending criteria has left many more people in the position where they can no longer achieve their aspirations of owning their own home.
“In the circumstances, I believe there is a compelling case for an urgent short-term intervention to support first time buyers adversely impacted as a result of the COVID-19 pandemic.”
She added that the funding will “provide a significant boost to the housing market and give confidence to consumers, builders and the wider housing supply chain which should in turn stimulate the economy”.
Mark Graham, chief executive of Co-ownership, said: “This announcement allows us to further support the housing market and help even more customers on their journey into homeownership.
“The knock-on effect of this investment will be felt throughout the local economy in the challenging months ahead and is a vote of confidence in a sector that has already demonstrated significant resilience.”
Co-ownership is the Department for Communities’ main direct delivery partner for affordable housing. Most other housing associations in Northern Ireland are primarily funded through grant allocated by the Northern Ireland Housing Executive.
The association has helped more than 30,000 people buy a home since it launched in 1978. It currently owns a stake in 9,000 homes across the region.
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