Scottish government launches support for first-time buyers

The Scottish government has officially launched its First Homes Fund to help first-time buyers.

Under the scheme, it offers first-time buyers a £10,000 contribution towards a deposit, which can be used to buy any property with a value of up to £300,000.

The Scottish government claims more than 2,000 households could be supported to take their step onto the property ladder in the first 100 days of the government through the scheme.

Make life easier

Cabinet secretary for social justice and housing Shirley-Anne Somerville said: “We know how hard it is to get that first foot on the property ladder and the opening of this fund is a direct response to stories I have heard from so many people who are keen to buy their first home.

“The First Homes Fund is part of a broader programme of action, supported by a record £4.9 billion investment in affordable housing over the next four years.

“We promised to act to make life easier for many and fairer for all and, through the First Homes Fund, we are delivering on that promise.”

The Scottish government claim over the course of this Parliament, it is expected around 50,000 households will benefit from the £500 million scheme.

Important step from the government

Homes for Scotland (HFS) chief executive Jane Wood said: “Reintroducing the First Home Fund was a key HFS ask ahead of the election, so we welcome this important step from the Scottish government.

“Supporting first-time buyers is essential, not only in helping to address Scotland’s existing housing need, with 693,000 households affected, but also in stimulating wider socio-economic growth across the country by unlocking investment confidence across the sector, particularly in areas where development viability can be more marginal and help increasing delivery of housing of all tenures where it is needed most.”

Leeds Building Society, Scottish Building Society and Lloyds Banking Group are among the lenders to sign up to the scheme.

Scheme does not address root causes of housing emergency

However, as previously reported by Property118, critics have argued the scheme does not address the root causes of Scotland’s housing emergency.

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.”