31 Jul 2014

Claims Help To Buy Scheme has almost run out of funds

Claims Help To Buy Scheme has almost run out of funds

Allan Gardner, Financial Services Director, comments on the recent news that the Help to Buy (Scotland) scheme has almost ran out of funds only three months into the scheme.

Allan Gardner, Financial Services Director, comments on the recent news that the Help to Buy (Scotland) scheme has almost ran out of funds only three months into the scheme.

BBC Scotland reported recently that the Scottish Government’s Help to Buy scheme has run out of money for this financial year after only three months.

The total funding allocated by the Scottish Government to the scheme was £275million, which was launched in April 2014.  The Scottish Government said demand for the scheme had been “extremely high” with additional funding already being allocated.

A Scottish Government spokesperson insisted all applications that had so far been approved will proceed”.

“More than 2,000 homes have been purchased through the Help to Buy Scotland to date with an additional 2,000 likely to be completed by the end of the financial year. “

“We are also actively considering how further demand can be supported in this financial year”.

“In the meantime, if people who have not yet had an application approved are considering buying a house through the scheme, they should in the first instance contact the agents managing the scheme to check availability.”

Responding to news reports Homes for Scotland Chief Executive Philip Hogg said:

“Having worked closely with the Scottish Government on monitoring of the Help to Buy (Scotland) scheme since its launch last September, we are frustrated but not surprised by this news.

“Quickly aware of the high level of interest, we have consistently called for additional budget to ensure the scheme can meet the demand which clearly exists. This is demonstrated by the fact that it has already generated some 3500 sales and reservations.

“Without a doubt, the Help to Buy (Scotland) scheme has proved a huge boost, not only in terms of stimulating the building of much needed new homes but also in supporting jobs and wider economic recovery.

“Whilst the scheme will remain in operation with £100million allocated for 2015/16 to support buyers across Scotland, any interruption now will obviously be hugely frustrating for both buyers and builders alike. With Westminster having pledged support for the English scheme until 2020, we will continue to work closely with the Scottish Government on the development of a longer-term strategy here.”

Two of the UK’s leading high street lenders had already announced changes to their lending criteria for Help to Buy cases by restricting applications to first time buyers only.  

Until the Scottish Government make a decision if they will continue to fund the scheme in 2014/15 this news must come as a huge disappointment to home buyers seeking their first homes and to house builders who will find it more difficult to sell their stock. 

Allan Gardner, Financial Services Director


Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Source of enquiry