Help to Buy (Scotland)
Help to Buy (Scotland) was launched in September 2013. The scheme 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.
Since its launch, the scheme has supported more than 12,000 households into a new home. Figures from the Scottish Government show that around two thirds (66%) of Help to Buy (Scotland) households were first time buyers, whilst around a third (34%) were existing home owners. The scheme has also been particularly beneficial to younger house buyers, with 76% of those buying a house under the scheme being aged 35 or under.
Scheme Funding
At the start of the scheme, £313 million was invested to cover the first three years (2013/14 – 2015/16). A further £195 million was committed from 2016/17 - 2018/19.
The Government has now announced that from April 2019, a further £100 million will be invested over two years, helping up to 4,000 more households to purchase a new home.
“With most Scots wanting to own their own home and the scheme proven to increase build rates, this is a very welcome announcement,” commented Nicola Barclay, Chief Executive of Homes for Scotland, which represents companies building the majority of the country’s homes. “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 size 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,” she said. “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.”
Good News for House Buyers
The Financial and Banking industry trade body, UK Finance, has also welcomed the news that the scheme is to be extended for a further two years, describing it as good news for house buyers in Scotland.
“The extension of Help to Buy in Scotland is good news for buyers and home movers with low deposits, who will continue to receive vital support when buying a new-build home,” he said.
“Last year the number of first-time buyers in Scotland reached its highest level in a decade, boosted by vital schemes like Help to Buy,” he added. “Today’s announcement will bring welcome stability to the Scottish mortgage market and help more people get a foot on the housing ladder in the years ahead.”
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