Northern Ireland's co-ownership scheme has received a major cash injection, which could help almost 200 first time buyers get on the property ladder by March next year.

Housing Minister Margaret Ritchie has welcomed the private backing from Bank of Ireland, which totals £35m.

Agreement was reached after negotiation between the Department of Social Development and the bank.

The move signals a revival of the co-ownership scheme, which faltered earlier this year due to a lack of funding, resulting from increased demand.

Minister Ritchie said: "This is excellent news for people trying to get onto the housing ladder.

"The funding will ensure that the Co-Ownership Housing Association will deliver the Programme for Government’s target of 500 affordable houses this year."

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Co-Ownership Housing Association Chief Executive, Alan Crowe, said: "The reality of household budgeting these days is that home ownership has not been an option for a growing number of people who simply cannot afford the up front costs.

"We are all aware that there are many demands on government money at the moment for people who need help to buy, and we are delighted to be able to help through accessing this private finance."

However, Mr Crowe stressed there was a cap on the available funds.

"As always, there is a limit to available funding and £35million is all we have.

"Applications in the pipeline will be dealt with first, although I'm optimistic that a further 200 applications can also be processed by 31 March 2009, thus allowing us to meet this year's Programme for Government target.

"This borrowing is the first step, a pioneer if you like, with hopefully a long term public/private financing strategy to follow for Co-Ownership homes in 2009 and beyond," he added.

Michael Kidd, Head of Business Banking, Bank of Ireland Northern Ireland said: "Bank of Ireland is delighted to provide this level of support at what is a difficult time for the local housing market.

"The Co-Ownership model has been proven over many years and we are pleased to be supporting affordable housing by making these funds available to Co-Ownership."

(PR/JM)