Proposals for the Shared Equity Purchase Assistance Schemes

Results updated 10 Jun 2026

This report explains what people told us during the consultation on the Shared Equity Purchase Assistance Schemes and what the Housing Agency has decided to do next. We use plain language wherever possible.

At a glance: what’s changing

  • More predictable repayments for new loans under both schemes: Year 1: 0% (interest free) → Years 2 to 5: fixed 2.5% → Year 6+: Bank of England base rate +1%, capped at 5% (maximum)
     
  • Choice Scheme: easier 'buy-out' options. You will be able to make fixed-value capital repayments twice a year (up to 5% of the original loan each time) during the first five years, without needing a valuation. If you wish to make larger capital repayments, this remains an option as well, but a recent valuation will be required
     
  • Residency rules:
     
    • Fixed Scheme – minimum residency requirement is 5 years (unchanged)
       
    • Choice Scheme – minimum residency requirement reduced to 3 years
       
    • Both schemes - people with a 'No Recourse to Public Funds' (NRPF) visa condition are not eligible, regardless of how long they have lived on the Island
  • Keeping limits up to date (index-linking):
    We will reset income threshold and discounted purchase price caps in summer 2026. A separate amendment for durable annual index-linking will be brought forward in 2027
     
  • Clearer guidance and tools:
    Simplified illustrative calculator or downloadable tool, plain-English webpages, worked repayment examples, a Financial Health Checklist, and a concise technical brief for lenders/advisers. The '35% affordability' figure will be guidance, not a hard pass/fail test.

Executive summary

We received 50 responses (including six by email), from individuals, mortgage providers, an independent financial advice firm, the Liberal Vannin Party, and local and central government stakeholders. Respondents mainly focused on affordability and repayment predictability, residency rules, index-linking, and clarity of communications.

Overall, people support the Schemes and the direction of reform. The decisions in this report aim to make repayments more predictable, keep eligibility limits up to date, and explain the rules clearly, while staying fair to long-term residents and protecting public funds.

Files:

Closed 15 Jan 2026

Opened 4 Dec 2025

Contact

Housing Agency

+44 1624 685955

housingconsultations@gov.im

Overview

The Housing Agency in the Department of Infrastructure currently provides house purchase assistance through two schemes offering Shared Equity Loan Assistance:

  • Shared Equity Purchase Assistance (First Home Fixed) Scheme 2014 - First Home Fixed Scheme
     
  • Shared Equity Purchase Assistance (First Home Choice) Scheme 2014 -First Home Choice Scheme

This consultation outlines proposed amendments to these schemes aimed at improving affordability and access to home ownership. The proposals respond to a June 2024 Tynwald resolution requiring a review of home purchase assistance schemes and the development of an affordability framework. They also reflect recent policy developments, including the 2022 scheme updates and expanded eligibility for second-time buyers.

Key proposals include:

  • Resetting income thresholds and discounted purchase prices using updated earnings and construction cost data, with annual indexation applied going forward to maintain affordability and scheme relevance
     
  • Extending interest-free periods and increasing equity loan assistance under the Choice Scheme to support market access
     
  • Reducing residency requirements under the Choice Scheme to improve access for new residents who have recently settled on the Island and committed to staying here

In line with this resolution, the Housing Agency has reviewed the affordability framework and proposes an approach that guides applicants on their repayment capacity. This aims to support practical affordability while maintaining inclusive access.

The Department is now instructing the drafting of amendment legislation for implementation by 1 April 2026. This consultation seeks feedback from stakeholders and the public to help shape the final proposals.

Please note: For clarity on which proposals are open to feedback and how your input will be used, see the Consultations Scope section on the next page.

Why your views matter

The Shared Equity Purchase Assistance Schemes play a critical role in supporting access to home ownership on the Island. Recent changes in earnings, housing costs, and policy developments mean that the current schemes need to be updated to remain effective and fair. In addition, Tynwald has passed a resolution requiring a review of income thresholds and affordability principles. Consulting ensures that stakeholders and the public can provide input on these proposed changes, helping us identify practical issues, unintended consequences, and improvements before final decisions are made.

Reasonable adjustments and alternative formats

The Department is committed to equal opportunities and our aim is to make our documents easy to use and accessible to all.

We will take steps to accommodate any reasonable adjustments and provide such assistance as you may reasonably require to enable you to access or reply to this consultation.

If you would like to receive this document as a paper copy, in another format or need assistance with accessing or replying to this consultation, please email housingconsultations@gov.im or telephone +44 1624 685955.

Responding to this consultation and questions

You can respond to this consultation online by clicking on the 'Online Survey' link below. Alternatively you can download a paper version of this consultation in the 'Related' section below and email it to housingconsultations@gov.im or post it to:

Housing Agency,
Markwell House,
Market Street,
Douglas,
Isle of Man,
IM1 2RZ

Alternatively, you can submit your responses in person at Markwell House. If you would like to submit your responses in person, please email housingconsultations@gov.im or telephone +44 1624 685955 to make an appointment. 

Areas

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Audiences

  • All residents

Interests

  • Housing
  • Legislation
  • Policies, strategies & plans