Co-Ownership: A distinct model of shared ownership
In the landscape of UK housing policy, shared ownership has long been positioned as a bridge between renting and full home ownership.
Northern Ireland’s version is the Co-Ownership model, and it stands apart from how it is delivered in Great Britain. Understanding how it works reveals why Co-Ownership is a more flexible and, in some respects, a more accessible route into home ownership.
Mark Graham, Chief Executive of Co-Ownership explains: “Co-Ownership in Northern Ireland is a single, region-wide approach. Established in 1978 and supported by the Department for Communities, we operate as the sole provider of shared ownership in Northern Ireland. Over 35,000 homes have been delivered by Co-Ownership since 1978, and we currently have 11,000 co-owners. Last year alone, Co-Ownership provided 950 new shared ownership homes.”
The mechanics are straightforward. Buyers purchase a share of a property, between 50 per cent and 90 per cent using a conventional mortgage, while Co-Ownership retains the remaining share. The buyer then pays a reduced rent on the portion owned by Co-Ownership. This hybrid tenure, part ownership, part rental, lowers both the deposit requirement and monthly costs, making home ownership viable for households otherwise priced out of the market.
Purchasers can then buy out the property in full when they can afford to or incrementally buy additional shares until they reach full ownership. Crucially, there is no obligation to do this, giving households flexibility to remain part-owners indefinitely or to transition gradually as their financial circumstances improve.
Graham continues: “What differentiates Northern Ireland’s approach most sharply from shared ownership schemes elsewhere is its institutional simplicity. In Great Britain, shared ownership is delivered through multiple housing associations, tied to specific developments and governed by a more fragmented regulatory and funding framework.
“By contrast, Northern Ireland’s single-provider model creates consistency in rules, eligibility, and customer experience. Co-Ownership allows buyers to purchase both new-build and existing homes anywhere in Northern Ireland, subject to a price cap which currently sits well above the average property price here at £215,000. In Great Britain, shared ownership is restricted to new-build properties limiting choice.”
Shared ownership provision in England has been met with criticisms following a recent National Audit Office report highlighting issues with the model’s effectiveness.
Graham explains why the same challenges cannot be applied to Northern Ireland. He concludes: “Many of the issues facing England’s shared ownership model are about high prices in the London market, and the high service charges and quality issues in the apartment market there.
“Here, property still remains affordable by comparison, with our co-owners typically opting for three-bed semi-detached homes, priced on average at around £170,000.
“Others around the clarity and complexity of the product are avoided in Northern Ireland’s model, largely through Co-Ownership being a long established and well trusted brand operating across the region.”
The benefits of the Co-Ownership model are recognised by the Department for Communities and its long-term commitment of £153 million of financial transactions to deliver 4,000 Co-Ownership homes over the coming years.
E: mgraham@co-ownership.org
W: www.co-ownership.org
