TL;DR
Equity Sharing Northern Ireland - key points
Equity Sharing is not a general shared equity product. It is part of the House Sales Scheme for eligible tenants in Northern Ireland.
The minimum initial share is 25%, and you can buy further shares in multiples of 5%. You pay reduced rent, but must also budget for mortgage payments and ownership costs. Ask NIHE to confirm the rules that apply before you apply.
Extend Finance can help with the mortgage side: affordability, lender choice, documents and understanding how the scheme affects the application. We do not decide scheme eligibility, allocate properties or approve the scheme application.
Buying a share of the home you rent
Equity Sharing is part of the House Sales Scheme for eligible tenants buying a share of their existing home. It cannot be used to choose an unrelated property on the open market.
Who Equity Sharing is for
Equity Sharing may help eligible tenants who qualify for House Sales Scheme but cannot afford to buy the whole home outright. It is linked to the property the tenant already occupies.
At least one buyer must be the legal tenant. Published House Sales Scheme guidance generally requires at least five years of qualifying secure tenancy; exceptions can apply where a parent or partner was previously the tenant. Some homes are excluded, including sheltered housing and certain small ground-floor or single-storey properties. Ask NIHE to confirm your tenancy history and property eligibility. See our House Sales Scheme guide for the wider rules.
How Equity Sharing works
Instead of buying 100% of the home, the tenant buys an initial share. NIHE guidance says the minimum share is 25%. Rent is reduced in line with the share bought.
The tenant can usually buy additional shares later in 5% steps. This is different from FairShare staircasing, which uses 10% blocks.
Mortgage, rent and responsibilities
If you need a mortgage for your share, the lender still checks affordability, credit, income and property suitability. You remain responsible for mortgage payments and housing costs.
Buying a share makes you a leaseholder rather than a tenant. You are responsible for maintenance and repairs regardless of your share, and for rates; flats and maisonettes also carry an annual service charge. Rent reflects the share retained by the landlord and includes a maintenance adjustment. Budget separately for insurance and purchase fees.
Equity Sharing figures
- Minimum initial share
- 25%
- Buy more shares
- 5% steps
Confirm the purchase terms and ongoing costs with NIHE before applying.
How to apply
- Check whether you are eligible under House Sales Scheme rules.
- Ask NIHE or the relevant landlord/provider whether Equity Sharing is available for your case.
- Check whether the minimum 25% share is affordable.
- Review mortgage options, documents and deposit with an adviser if borrowing is needed.
- Complete the scheme/provider process separately from the mortgage application.
- Use a solicitor for legal documents, lease/rent obligations and completion.
What to watch out for
- this is not an open-market buyer scheme;
- confirm the current House Sales Scheme rules with NIHE before applying;
- rent may reduce, but other ownership costs remain;
- a lender can still decline the mortgage;
- If you sell within ten years of your first equity purchase, NIHE must first have the option to buy back the property. If it declines, an open-market sale can proceed and NIHE recovers its retained equity. Ask your solicitor to check the resale terms and any discount repayment.
How Equity Sharing differs from other NI schemes
- Co-Ownership: a shared ownership scheme in Northern Ireland, usually with a 50% to 90% buyer share and rent on the remainder. The property value limit is £215,000 for existing homes and £230,000 for new builds. Your individual approval limit depends on affordability.
- FairShare: shared ownership for approved new-build properties through participating housing associations, with rent on the unsold share.
- Equity Sharing: tenant-only part-buy route within the House Sales Scheme, not an open-market buyer scheme.
- House Sales Scheme: for eligible Northern Ireland Housing Executive tenants. The statutory route for registered housing-association tenants closed to new applications on 28 August 2022.
- Help to Buy Mortgage Guarantee: this historic scheme is closed to new loans. Current low-deposit mortgage options must be checked separately with lenders.
How a mortgage adviser can help
Extend Finance can help with the mortgage side: affordability, lender choice, documents and understanding how the scheme affects the application. We do not decide scheme eligibility, allocate properties or approve the scheme application.
An adviser can help assess whether a lender is likely to support the share purchase, compare affordability with full purchase, and explain how tenant purchase routes differ from Co-Ownership or FairShare.
Alternatives to compare
Compare the parent House Sales Scheme, Co-Ownership for broader shared ownership, and FairShare for approved new-build shared ownership.
Check the mortgage side of Equity Sharing
If you are an eligible tenant considering part-buy, Extend Finance can help you understand the mortgage side while NIHE or the provider handles scheme eligibility.
Official sources
Check the latest official guidance: NIHE Equity Sharing, nidirect Equity Sharing and NIHE consultations.
FAQ
Frequently asked questions
Is Equity Sharing open to all buyers in Northern Ireland?
No. Equity Sharing is a tenant-only route within the House Sales Scheme. It is not a general open-market scheme for any buyer.
What is the minimum share?
The minimum initial share is 25% of the property. You pay rent on the part retained by the Housing Executive and remain responsible for repairs and other ownership costs, even though you have bought only part of the home.
Does a 25% share mean I need a 25% deposit?
No. The 25% figure is the minimum share of the property you buy through the scheme, not the amount you must have in savings. If you use a mortgage, deposit requirements need to be confirmed separately with the lender. Check the other purchase costs before applying.
Can I buy more shares later?
Yes. You can increase your share in multiples of 5% of the whole property, a process called staircasing. Ask NIHE to confirm the purchase price and transaction costs before arranging any additional mortgage borrowing.
Does Equity Sharing reduce rent?
Yes. Rent is reduced, but you remain responsible for repairs and other ownership costs. Ask NIHE for the rent calculation and a breakdown of charges.
Is this the same as Co-Ownership?
No. Co-Ownership is a broader shared ownership route for eligible buyers. Equity Sharing is linked to House Sales Scheme tenant purchase.
Can a broker approve Equity Sharing?
No. A broker can help with the mortgage side, but NIHE or the relevant provider decides scheme eligibility and legal route.
Where should I check the current scheme rules?
Check the official NIHE guidance and ask NIHE to confirm the rules for your tenancy and property before applying. Mortgage approval is a separate decision.