A new £220million scheme to help first-time buyers get a foothold on the property ladder was launched by the Scottish Government yesterday.
It was unveiled as thousands of people attended the first day of the Scottish Home Show at the Aberdeen Exhibition and Conference Centre.
The government’s Help to Buy scheme will be spread over three years, starting from Monday, offering up to 20% of the purchase price of a new home.
An eligible buyer will be expected to contribute at least 80% of the cost.
The shared equity scheme will apply to houses worth up to £400,000.
Deputy First Minister Nicola Sturgeon said: “There is no doubt that getting on to, or moving up, the property ladder has become tougher recently.
“House buyers are being hampered by the lack of affordable mortgages, with high deposits often a major barrier.
“The Help to Buy (Scotland) scheme will not only help people to buy their first home, it will also help ‘second-steppers’ and others move to a new property.”
The announcement was welcomed by house-builders last night. Andy Wyles, divisional managing director for Taylor Wimpey in Scotland, said the new measure was good news for buyers who could not otherwise afford to buy because of the large deposits required by mortgage lenders.
He said: “There are signs of improvement in the housing market across Scotland, and the measures announced today will go a long way towards boosting confidence and encouraging more activity in the home-building industry.”
John Cassie, Persimmon Homes’ regional chairman in Scotland, said the announcement would have a “huge impact” on the housing market.
He said: “As well as delivering greater access to more new homes, the scheme will bring more jobs into the industry, which is good news for the whole country.”
The government scheme is backed by the Council of Mortgage Lenders and house-building industry body Homes for Scotland.