Tenant purchase under the House Sales Scheme in Northern Ireland

Government Schemes

House Sales Scheme Northern Ireland

A tenant-only purchase route for eligible Northern Ireland tenants, with a five-year qualifying tenancy rule and a live consultation warning.

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Regulated by the Financial Conduct Authority · No. 792412

TL;DR

House Sales Scheme Northern Ireland - key points

House Sales Scheme is a limited tenant-only route, not an open-market buyer scheme. NIHE eligibility guidance refers to a five-year qualifying tenancy rule.

nidirect gives the discount as 20% after five years, plus 2% for each extra year, capped at 60% or £24,000. NIHE is consulting on proposed amendments until 17 July 2026, so verify current rules before publication or applying.

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.

Status: limited and under consultation

This is a tenant-only route. NIHE lists a consultation on proposed House Sales Scheme amendments closing on 17 July 2026, so current rules must be checked before publication or applying.

Rules can vary

Rules can vary by lender, provider, landlord, development or local authority. Always check the current criteria before reserving a property or applying.

Status and consultation

The House Sales Scheme can allow eligible tenants to buy all or part of their Housing Executive home. It should not be written as a normal government scheme for any buyer.

NIHE lists a current consultation on proposed amendments, including possible changes to exclusions, flats, buy-back periods and discount calculations. The published closing date is 17 July 2026.

Who may qualify

NIHE eligibility guidance says tenants normally need at least five years qualifying tenancy and may need proof of previous qualifying tenancy. Arrears and some property or conduct issues can prevent completion.

The Department for Communities confirmed that the House Sales Scheme for registered housing association tenants ended on 28 August 2022. Housing Executive tenant routes must therefore be distinguished from housing association tenant history.

Discount, mortgage and costs

nidirect states that the discount starts at 20% after five years, increases by 2% for each additional year and is capped at 60% or £24,000, whichever is lower. Because NIHE is consulting on proposed scheme amendments, verify the current rule before quoting it live.

If you need a mortgage, the lender still checks affordability, income, credit history, property suitability and deposit source. Flats or maisonettes can involve leasehold responsibilities and service charges.

House Sales Scheme figures to verify

Qualifying tenancy
5 years
Starting discount
20%
Maximum cash discount
£24,000

Discount figures are confirmed by nidirect and should still be manually reviewed before live publication because NIHE consultation is active.

Equity Sharing option

If full purchase is not affordable, Equity Sharing may allow an eligible tenant to buy a minimum 25% share and pay reduced rent on the rest, with further shares usually bought in 5% steps.

How to apply

  1. Check NIHE or landlord guidance for current House Sales Scheme status and consultation outcome.
  2. Confirm qualifying tenancy, property eligibility, arrears and exclusions.
  3. Request the official application route from NIHE or the relevant landlord/provider.
  4. Check mortgage affordability and lender choice if borrowing is needed.
  5. Use a solicitor to review legal documents, lease/service charge terms and repayment or buy-back obligations.
  6. Proceed to mortgage application and completion only when scheme eligibility and legal position are clear.

What to watch out for

  • scheme rules are under consultation until 17 July 2026;
  • not every tenant or property will qualify;
  • housing association tenant rights changed in 2022;
  • discount and repayment rules can affect future sale;
  • a mortgage adviser cannot decide legal eligibility or approve the scheme.

How House Sales differs from other NI schemes

  • Co-Ownership: NI-wide shared ownership for eligible buyers, usually 50% to 90% buyer share, with a current property cap of £215,000.
  • 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 Housing Executive or qualifying tenants buying all or part of their social home.
  • Help to Buy Mortgage Guarantee: the old NI-linked page is closed to new loans and is now relevant mainly for existing borrowers.

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 review the mortgage side, compare lenders, package income and documents, and help compare full purchase with Equity Sharing or Co-Ownership. Legal eligibility and discount rules stay with NIHE, the landlord/provider and your solicitor.

Alternatives to compare

If House Sales Scheme is not available, compare Equity Sharing, Co-Ownership, FairShare or a standard mortgage route.

Check the mortgage side before you apply

If you are an eligible tenant considering House Sales Scheme, Extend Finance can help with affordability, lender choice and mortgage documents while the scheme route stays with NIHE or the provider.

Official sources

Check the latest official sources: nidirect House Sales Scheme, NIHE buying your home overview, NIHE eligibility, NIHE Equity Sharing, NIHE consultations and Department for Communities 2022 update.

FAQ

Frequently asked questions

Is the House Sales Scheme open to everyone?

No. It is a tenant purchase route, not an open-market scheme. Eligibility depends on tenancy, property and scheme rules.

How long do I need to be a tenant?

NIHE eligibility guidance refers to at least five years qualifying tenancy, with evidence needed for any previous qualifying tenancy.

What discount may apply?

nidirect says the discount starts at 20% after five years, increases by 2% for each extra year and is capped at 60% or £24,000. Because NIHE consultation is active, verify the current discount rule before relying on it.

Can housing association tenants use it?

The Department for Communities confirmed that the House Sales Scheme for registered housing association tenants ended on 28 August 2022. Current rights depend on the tenant group and landlord route.

What is Equity Sharing?

Equity Sharing is the part-buy option inside the House Sales Scheme. NIHE guidance says the minimum share is 25%, with additional shares usually bought in 5% steps.

Why is there a consultation warning?

NIHE lists a consultation on proposed House Sales Scheme amendments with a closing date of 17 July 2026. That could affect future rules.

Can a broker approve the House Sales Scheme application?

No. Extend Finance can help with the mortgage side, but NIHE, the landlord/provider and legal advisers handle scheme eligibility and legal route.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

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