10 Apr 2018
Great news for first-time buyers as Help to Buy scheme is extended
The Help to Buy scheme in Scotland is to be extended – allowing more people to buy a new-build home without the need for a large deposit.
From April 2019, a further £100million will be invested over two years, helping up to 4,000 more households.
Since 2013, the scheme has already assisted more than 12,000 households into a new property.
Housing Minister Kevin Stewart said: "The scheme has not only helped thousands of buyers into new homes – it has supported around 9,000 jobs."
He said over a third of the annual £50million budget – £18million – will be reserved for sales from small to medium-sized builders, who were particularly affected by the drop in development finance after the worldwide financial crisis.
The minister added: "We know house builders still see Scotland as a place to continue to develop and invest, with the latest figures showing new house completions grew by 5% over the last year."
Well-received
Nicola Barclay, chief executive of Homes for Scotland, which represents companies building the majority of the country's homes, said: "With most Scots wanting to own their own home and the scheme proven to increase build rates, this is a very welcome announcement.
"It clearly demonstrates that the Scottish Government supports the aspiration of home ownership and recognises the real challenge that continues to face prospective buyers in terms of the of deposit they require to achieve this goal.
"This additional funding will provide our member companies with the certainty that they need to invest in and open up new sites and expand the number of homes available to new purchasers.
"Crucially, just as the scheme's extension will ensure even more people can buy a home, it will also ease pressure in other parts of the housing market as people move into home ownership from socially-rented homes and come off council house waiting lists."
Help to Buy (Scotland) is open to first-time buyers and existing homeowners, and provides up to 15% of the purchase price of a new-build home. The maximum purchase price is £200,000.
Around two-thirds of households using the scheme have been first-time buyers, while 34% were existing home owners. About half of buyers were aged 30 years or under, with over three-quarters of buyers aged 35 or under.
How we can help
To find out more about the scheme, get in touch with one of our independent financial advisors here.