Fresh Help for House Buyers

People across Scotland are to be helped on to the housing ladder with a £120 million funding boost announced today by Deputy First Minister Nicola Sturgeon.

The funding will be available over the next two years to both first time buyers and existing homes owners who are buying a new build home.

Buyers who successfully apply to use shared equity will be able to purchase a home by paying a majority share in it, while the Scottish Government pays the remaining amount under an agreement with the buyer.

As well as helping house buyers the scheme will stimulate the construction industry, creating growth within the house building sector.

The Scottish Government is currently working with stakeholders to develop the scheme.

Speaking at the Homes for Scotland Annual Conference, Deputy First Minister Nicola Sturgeon said people in Scotland who should rightly be able to afford a mortgage are still facing real challenges buying a home.

“We are well aware of the challenges that people face and want to continue to do all we can to help. The £120 million funding announced today will not only help people to buy their first home, they will also help ‘second-steppers’ to be able to sell their home and to move to another property,” Ms Sturgeon said.

“But this is not only about helping people to buy houses. Our actions are also stimulating the economy. By supporting house buying and construction, we are creating new work for the sector and supporting jobs.”

“This demonstrates that in these tough financial times the Scottish Government will step in, both to help households and crucial sectors of our economy like house building.”

Jim Preston, the new Chairman of trade body Homes for Scotland, welcomed the news; saying home building is one of the most effective ways to stimulate the economy because of its strong employment and output multiplier effects.

“With strong evidence to demonstrate the significant positive impact shared equity schemes can make, a well-designed and funded initiative could be a game changer in Scotland,” Mr Preston said.

“Timing, however, is crucial and we therefore look forward to working closely with the Scottish Government to ensure this option is made available to help home buyers here without delay.”