More than 2,000 households will be able to buy a new build home as the Help to Buy (Scotland) scheme is extended by a year to March 2022.
Supported by £55 million of funding for 2021/22, the extension will also help house-builders to ensure their economic recovery over the years ahead.
Housing Minister Kevin Stewart MSP said:
“A strong and growing house-building industry is vital to Scotland's future economic prosperity, particularly as we plan our strategic economic recovery from COVID-19.
“This extension will provide us with the opportunity to reassess future market priorities, taking account of economic conditions following the pandemic, while providing a helping hand to those seeking to buy their own home.
“Since 2013, Help to Buy (Scotland) has supported the purchase of over 17,000 new build homes and people aged 35 and under in particular.
“Extending the scheme will help more people to buy a new-build property, especially those with lower incomes who have used up savings due to the impact of COVID-19.”
Kenneth Gibson MSP added:
“79% of those supported by the scheme in 2018/19 were aged 35 and under. This is a very important group to support, having been through ten years of austerity now.
“Now COVID-19 has created additional challenges, I welcome the SNP Government’s decision to keep this opportunity open for an extra year.”
The Help to Buy (Scotland) scheme focuses on more affordable housing with a maximum purchase price of £200,000 and with £15 million ring-fenced support for the purchase of homes sold by smaller developers, from a total budget of £55 million. It bridges the gap between lower loan-to-value mortgages obtainable for new builds and the smaller deposits needed to buy a new home.
Over the next two years the funding commitment for Help to Buy (Scotland) is:
2020-21 £50 million
2021-22 £55 million
An independent evaluation of the Scottish Government shared equity schemes, including Help to Buy has been published. This work was undertaken prior to the COVID-19 crisis.