SNP scheme criticised for not addressing Scotland’s housing emergency

The Scottish government has come under fire over its First Homes Fund, with critics claiming it is the SNP “trying to distract from nearly two decades of failure”.

The scheme is designed to help first-time buyers by providing a £10,000 contribution towards a deposit on their first home.

However, critics have argued the scheme does not address the root causes of Scotland’s housing emergency.

Home ownership has felt increasingly out of reach

Under the fund, the scheme will be open to all prospective buyers looking to take their first step onto the property ladder, with a £300,000 cap on the value of the property purchased.

The Scottish government said it will hold an equity share in the property, although the homeowner will retain ownership and title. No monthly payments will be required and no interest will be charged.

The government’s equity share would normally be repaid when the property is sold.

Cabinet secretary for social justice and housing, Shirley-Anne Somerville, 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.”

Nothing to address the real problem

However, critics have claimed the scheme could make it harder for young people to get on the housing ladder because it fails to address the real problem.

Scottish Conservative MSP, Meghan Gallacher, said: “This statement is yet another example of the SNP trying to distract from nearly two decades of failure that has fuelled Scotland’s housing emergency.

“Giving some first-time buyers a government-backed loan does nothing to address the real problem, the SNP have choked off housing supply through reckless rent controls, excessive red tape, and anti-growth policies.

“Hard-working Scots are being hammered by the SNP’s punishing LBTT regime, which makes it even harder for young people and families to get on the property ladder.

“The Scottish Conservatives would scrap LBTT on primary residences and get Scotland building again by cutting bureaucracy and delivering 80,000 affordable homes across the next Parliament.”

People with nowhere safe to call home

Assistant director of Shelter Scotland Gordon Llewellyn-MacRae criticised the scheme and said the government should not prioritise help for first-time buyers over “people with nowhere safe to call home”.

He said: “At a time when thousands of children are waking up in temporary accommodation, it is disappointing that the new government has used its first major intervention on the housing emergency to revive a scheme that fails to address the root causes of homelessness.

“Instead, the government should use its first 100 days to set out a radical approach to deliver new social homes, uphold people’s rights, and tackle the racism and bias in our housing system, not repeating policies that do nothing to help the 10,480 children trapped in temporary accommodation.

“Evidence shows these interventions inflate house prices, boost developer profits and largely benefit higher earners, while offering little support to those most in need.

“The government must prioritise investment in at least 15,693 social homes each year and properly support homelessness services that are under enormous pressure. It is wrong to prioritise help for first-time buyers over people with nowhere safe to call home.”