The Scottish Government's First Homes Fund, opening for applications before the end of June, will provide eligible first-time buyers with up to £10,000 towards a deposit on a new or existing home worth up to £300,000.
How the scheme works
Under the shared equity scheme, the government contributes up to £10,000 in exchange for an equity stake in the property. The buyer remains the legal owner and holds the title. There are no monthly repayments or interest on the government's contribution; the equity share is typically repaid when the property is sold.
A first-time buyer is defined as someone who does not currently own, and has never previously owned, a property anywhere in the world.
Expected impact
The first phase is expected to help around 2,000 households within its first 100 days, with a longer-term ambition to support 50,000 first-time buyers during the current parliamentary term.
Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville announced the scheme in the Scottish Parliament last week, stating: "For too many people across Scotland, particularly younger people and first-time buyers, home ownership has felt increasingly out of reach. In communities the length and breadth of our nation, we are hearing the same story; people saving what they can but finding that the cost of a deposit is simply too great a barrier. That is the context in which this Government will act. This is a direct response to the experience of people across Scotland. We have listened and are taking fast, decisive action."
Part of wider housing investment
The fund is part of a £4.9 billion investment in affordable housing planned over the next four years. Ms Somerville added: "We promised we would support first-time buyers and we are delivering."
Eligibility and application
To qualify, applicants must be first-time buyers (never owning a property anywhere), purchase a property worth no more than £300,000, and fund the purchase with a mortgage. Both new-build and existing homes are eligible. Further details on the application process are expected before the fund opens later this month. Demand for previous schemes has been high, so interested buyers should monitor Scottish Government updates.
