Minister launches housing partnership to help first-time buyers get own home
Tuesday, 2 September 2008
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A new government-backed housing partnership which is the first of its kind in the UK was being launched today in Portadown by Social Development Minister Margaret Ritchie.
And the scheme, which is aimed primarily at first time buyers, could go some way to filling the void left by Co-Ownership.
The pilot scheme Own A Home is a joint initiative between the government and Portadown-based builder Turkingtons, local housing associations’ Clanmil Housing and the South Ulster Housing Association, and Barclays bank.
And the move is being heralded as something of a saviour to beleaguered first time buyers here during the current climate of economic gloom and falling house sales.
Under the scheme buyers will not have to stump up a deposit — which for first time buyers is usually in the region of £5,000.
House-hunters will also be able to purchase 50% of the property’s value through a 100% mortgage from Barclays.
Then the developer Turkington will pay 25% of the cost of the house, with the remaining 25% provided by either of the housing associations.
The 15-year-old properties in Mahon Park in the town, which have a garage, gardens and brick-paved driveway, are priced from £145,000. And it is hoped the innovative scheme should give those struggling to get onto the property ladder a much-needed leg-up.
Miss Ritchie said: “As part of the New Housing Agenda I want to increase the supply of affordable housing. This scheme, a first in Great Britain and Ireland, does that, but it is just a start.”
But there is mixed feeling among the province’s property professionals about the housing market. Yesterday the RICS called for a raft of measures to be imposed by the government in a bid to halt declining house sales.
An RICS spokesman described the housing market as “on its knees” with its research pointing to the worst house sales levels in 30 years.
RICS Northern Ireland director, Ben Collins, said: “There is no silver bullet, but RICS is calling for a joined-up, comprehensive approach to bring back confidence and to give the public clarity about what is available.”
The RICS called for a first time buyer tax-free savings scheme to fund a deposit, a stamp duty holiday, rent to buy scheme and a move to bring empty properties back into the housing pool among other things.
And while most will welcome the RICS campaign, local estate agents say they are selling houses that are well priced.
All 53 houses at Aylesbury Place in Newtownabbey sold out just hours after going on sale last week, thanks to price slashing and the developer picking up the tab for both the deposit and stamp duty.
Other estate agents say buyers are coming back to the market, but it is a trickle rather than a torrent.
BTW Cairns reported that 75% of its buyers during July and the beginning of August were first-timers.
But few expect price growth in the next 12-months: “I don’t think house prices will either go up or down in the next year,” said local estate agent John Minnis.
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Whilst I don't agree with Miss Ritchies politics and her past (i.e. her apposition to naming a play park after a well known sports personality in a largely Unionist town and her messing up of the Farset community development centre) She has done a great job so far in her post as Social Development Minister and she can see through the offensive terminology being used by the likes of Murphy to create instalbility at Stormont. Well done to her and the SDLP for a good job so far.
Posted by Gary | 03.09.08, 12:48 GMT
"Under the scheme buyers will not have to stump up a deposit — which for first time buyers is usually in the region of £5,000." Huh? Pass me my calculator! What mortgage can you get with a £5,000 deposit? Please tell me. Housing market is screwed - why always the positive slant? Estate Agents are always going to give us good news and tell us everything is ok. They are salesmen. They are trying to sell houses. Who are you trying to kid here like? Comeon!
Posted by Bertle Tridge | 03.09.08, 01:11 GMT
Just when the housing market was starting the fall to realistic prices that would benefit anyone buying for the first time or moving, Margaret Ritchie has decided to try to slow the fall to affordable prices and support developers and banks. How can people not see through this plan? How can this be good for first time buyers? Wait a while...
Posted by gferris | 02.09.08, 20:57 GMT
A new scheme? Maybe supported by the Governement but what happened to Northern Ireland Co-Ownership Housing Association? I bought a house through this scheme as did many other people I know dating back almost 20 years ago. At the time it was the only way I could afford a home. It was a great scheme which helped a lot of people get on the property ladder. It was flexible in that you could 'buy them out' in full or in part when finances allowed and the rent was minimal. Also the 'set-up cost' for legal fees, surveys etc was affordable. There was no cost to tax payers and you could choose the home you wanted - within reason and if desired or required you could stay in the same property for 99 years. Any improvements etc were also taken into account when the property was valued for 'buying out'
Another new Government inspiration!!!
Posted by Lucy | 02.09.08, 15:08 GMT
As an independent mortgage adviser I should I suppose have a vested interest in these schemes to boost the housing market in NI.
Why then do I feel physically sick at these latest moves?
My advice for over 2 years now has been wait. The prices will have to come down and you can buy then. The value of your house is somebody else’s opinion - the debt is real and it’s yours.
I am horrified that the developers, banks, press and the government are trying to lure first-time buyers into a trap of negative equity which will haunt them for the rest of their lives.
The system needs corrected but this is not the way to do it. Let the market correct itself. It will.
Posted by not happy | 02.09.08, 14:44 GMT
This "trial" is supposed to be the first of many to help restart the property market. Frankly I think it stinks! The illogic first of all that a developer will fund 25% of the price is ridiculous - surely the price will be increased to reflect this. But I am appalled that tax payers money will be used to subsidise this. The market is in the state its in because of logical reasons. Our economy is extremely weak largely becuase of the huge amount of personal debt per capita and policies like this will only make the situation worse. On another note where does Helen Carson think mortgages come from? How does she calculate the miniscule figure of 5K deposit?
Posted by Seamus | 02.09.08, 14:07 GMT
There is already a scheme in place that is 100% guaranteed to make houses affordable for FTBs, with no effort for the government, zero cost to the taxpayer and in the shortest possible timescale.
It's called 'falling house prices'.
An attempt to halt or intefere with this scheme, therefore, is clearly designed to make housing unaffordable.
Who benefits from unaffordable housing?
Posted by shipbuilder | 02.09.08, 13:32 GMT
Who are the government really trying to help? First-time buyers or developers trying to sell over priced houses? If the government really want to help first-time buyers they should allow the prices to continue falling until first-time buyers can afford to buy without all this help. What a waste of taxpayers money!
Posted by darryl | 02.09.08, 13:27 GMT
It shows the power of lobbying. No doubt there are those who convince ministers that we, the people, want to own a home at any cost. So ministers come up with these schemes that they fund using our money. It's disappointing when they allow businessmen and women to pull their strings. It shows how undemocratic our democracy is.
The market is falling. Prices will be affordable again before long. I hope not too many get sucked into this scheme.
As to John Minnis - if you really believe your statements you have a poor grasp of basic economics. It's time to educate yourself.
Posted by MC | 02.09.08, 13:08 GMT
Again an ill thought out scheme which will keep houses unaffordable longer for the rest of us by distorting the market.
'But few expect price growth in the next 12-months: “I don’t think house prices will either go up or down in the next year,” said local estate agent John Minnis.'
I feel John Minnis is being a bit optimistic and further falls are coming but even if they don't, which they will, they will stay the same in his opinion but they will fall in relative terms if we add in genral inflation of 5%!
Posted by Ken | 02.09.08, 12:35 GMT
What a farce! These aren't even new build houses yet the developers are charging a "new build" price for them. I hope people don't fall for this trap. It's not going to help anyone apart from the developers who are desperate to sell.
Would be interesting to read the small print on buyouts but I doubt any of joe public will get the chance to read the small print!
Posted by subby | 02.09.08, 12:09 GMT
So these 124 refurbished 15 year old houses with ownership spread over 4 sources - buyer, developer, Barclays and Housing association are going to kick start a housing market which the RICS admits is on its knees? I don't think so. Only the financially dim will be sucked in by a scheme to get rid of houses that won't sell in the open market for 145k. Hold off and you'll get one next year for about 90k.
Posted by doccyboy | 02.09.08, 11:17 GMT