More financial help for home buyers
19 May 2014 03:23 PM
Scottish
Government increases ‘Help to Buy’ funding.
An extra £40 million will be invested in a scheme that helps people
get on the housing ladder for the first time or move to a new property, Deputy
First Minister Nicola Sturgeon confirmed last week to Homes for Scotland
delegates.
The Scottish Government’s Help to Buy (Scotland) initiative has
allowed more than 1,100 people to buy a new home since its launch in September
2013.
This latest financial boost brings the overall investment to £275
million – investment that has brought much needed financial support to
the Scottish construction sector.
The scheme helps people to buy a new-build house from a participating home
builder without having to fund all of the purchase price. The buyer is required
to contribute a five per cent deposit, with the Scottish Government taking an
equity stake of up to 20 per cent of the value of the property.
The buyer then receives the outstanding sum through a repayment mortgage
from a participating lender, repaying the Scottish Government’s equity
stake when they can financially afford to do so.
So far a total of 156 house-builders have signed up for the initiative, with
six mortgage lenders offering mortgages to buyers wanting to benefit from
it.
Ms Sturgeon said:
“This additional £40 million funding will allow more people in
Scotland to buy their first home and continue to make it easier for
‘second-steppers’ and others to move to a new property.
“Since it launched in September last year, our Help to Buy scheme has
already helped over 1000 households into home ownership and this additional
funding will benefit even more families.
“It is also bringing much needed economic growth to Scotland by
supporting our housing industry and creating employment opportunities. This is
alongside our continued commitment to investing in affordable housing for
communities across Scotland.''
New Homes for Scotland Chair Sandy Adam said:
“A significant proportion of new homes are now sold through Help to
Buy, delivering on the Scottish Government’s key objectives of providing
more homes, creating more jobs and stimulating the economy.
“Additional investment, such as that announced today, and longer term
support assisting developers with investment planning will help the industry
to, quite literally, build on the scheme’s initial success and step up
production to the levels required to meet housing need across all tenures.
“But this welcome boost for Help to Buy (Scotland) is valuable in another
way. Many people in Scotland want to own their own home. Raising aspiration and
confidence in this way can only be achieved through initiatives such as
this.”
Notes To Editors
A full list of participating home builders and information for prospective
buyers is available atwww.scotland.gov.uk/housing/help-to-buy
The scheme is backed by the Council of Mortgage Lenders and house building
industry body, Homes for Scotland, who worked closely with the Scottish
Government to develop a scheme suitable for Scotland.