The return of Scotland’s First Home Fund has been heralded as ‘brilliant news’ for the country’s property market.
Relaunching its shared-equity scheme, the Scottish Government initiative will give first-time buyers a £10,000 contribution towards a deposit on their first home – with a limit of £300,000.
Open to all looking to make their first step on to the property ladder, the first phase is expected to support 2,000 households over the first 100 days of this government and 50,000 over the course of this parliament. The first round of applications for a First Homes Fund will open by the end of June.
Scottish Government cabinet secretary for social justice and housing, Shirley-Anne Somerville confirmed the scheme’s opening to the Scottish Parliament. She said, “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.
“The Fund sits within a broader programme of action and supported by a record £4.9 billion investment in affordable housing over the next four years.
“We promised we would support first time buyers and we are delivering.”
Ben Finnie, property sales director, Estate Agency, at Gilson Gray, said, “The return of the First Home Fund is brilliant news for Scotland’s property market and, more importantly, for thousands of first-time buyers who have been struggling to save for a deposit while dealing with rising living costs. This kind of support can make a genuine difference by helping more people take that first step onto the property ladder. We know from previous versions of the scheme that demand was incredibly strong, which shows just how needed this support is.
“The reintroduction of the fund will give the market a real boost across Scotland. First-time buyers are the foundation of the housing market – when they are able to buy, it creates movement all the way up the chain, increasing confidence and activity for buyers and sellers alike. For sellers, this should also be seen as a very positive development. Increasing the number of financially supported first-time buyers in the market means a larger pool of motivated purchasers actively looking for homes. That added demand can help sellers secure interest more quickly, improve confidence in transactions progressing smoothly, and ultimately help more properties get sold.”
