On Saturday, First Minister Nicola Sturgeon announced that the SNP Government will create a £150 million national scheme to support first-time buyers with the deposit they need to buy a home.
Buyers will only be required to fund a minimum of 5% of the value of their new home.
Under the scheme, a loan of up to £25,000 can be secured on the equity of the home; is repayable in full at any time; and must be repaid if the home is sold. No monthly payments will therefore apply.
In a further part of the package, oversupply of short-term lets will be tackled to protect the interests of local communities such as those on the Isle of Arran, and ensure a safe, quality experience for visitors, with new proposals published for consultation.
First Minister Nicola Sturgeon said:
“We want to help people find places to live in the communities they want to call home.
“Some first time buyers trying to get onto the property ladder can call on the financial help of relatives or friends – the bank of mum and dad. For too many, the simple truth is that, even on decent incomes, saving for a deposit takes so long it has become a distant dream.
“If buyers can find just 5% of the value of their new home from their own funds, we will do the rest. Starting later this year we will pilot a scheme to offer first-time buyers loans of up to £25,000 to fund or top up their deposit.
Housing Minister Kevin Stewart MSP, commented on the measures regarding short-term lets:
“We are committed to working with local authorities to allow them to balance the unique needs of their communities with wider economic and tourism interests.
“As part of identifying the best solution we will ask communities, landlords, local authorities and businesses across Scotland how councils can best use their planning, health and safety and regulatory powers to support local communities, whether further powers are required and how we can ensure that short term lets make an appropriate contribution to local services."
Kenneth Gibson MSP added:
“I welcome this commitment to help people into the property ladder across North Ayrshire and Scotland.
“The housing market has become increasing difficult to access and many of people no longer see it as an option.
“The SNP Government continues to implement commitments from its Programme for Government 2018/19, on short-term lets and I urge everyone who wants to have a say to do so via the consultation by 19 July.”