Scottish Government launches scheme to help first-time buyers

The Scottish Government has launched a scheme to help first-time buyers step onto the property ladder.

The First Homes Fund aims to help up to 2,000 buyers through the first stage of a shared-equity scheme in which the Government will give buyers a £10,000 contribution towards a deposit.

The Scottish Government has said it aims to reach about 50,000 buyers over the course of the Parliament with a planned £500m scheme.

Housing Secretary Shirley-Anne Somerville said the scheme is part of a Government promise to “make life easier” for many people across the country.

She said: “We know how hard it is to get that first foot on the property ladder and the opening of this fund is a direct response to stories I have heard from so many people who are keen to buy their first home.

“The First Homes Fund is part of a broader programme of action, supported by a record £4.9bn investment in affordable housing over the next four years.

“We promised to act to make life easier for many and fairer for all and, through the First Homes Fund, we are delivering on that promise.”

The deposit contribution can be used to buy any property with a value of up to £300,000 and aims to help young people and families access the property ladder.

While the Scottish Government will have an equity share in the property, the homeowner will own and have title to the property.

Homes for Scotland (HFS) chief executive Jane Wood said: “Reintroducing the First Home Fund was a key HFS ask ahead of the election, so we welcome this important step from the Scottish Government.

“Supporting first-time buyers is essential, not only in helping to address Scotland’s existing housing need, with 693,000 households affected, but also in stimulating wider socio-economic growth across the country by unlocking investment confidence across the sector, particularly in areas where development viability can be more marginal and help increasing delivery of housing of all tenures where it is needed most.

“HFS is ready to help support the efficient delivery of the fund so that all stakeholders, particularly those young people buying their first home, are ready and prepared for the launch of the scheme.”