More than £160 million of new funding will be targeted in 2016/17 on home ownership schemes to support 5,000 households to buy their own home.
More than £80 million will go to the SNP Government’s existing Open Market Shared Equity Scheme (OMSE) helping up to 2,000 eligible first-time buyers on low to moderate incomes.
The Help to Buy (Scotland): Affordable Home Ownership scheme will help up to 3,000 households next year, backed by £80 million equity support towards the purchase price.
The three year £195 million Help to Buy scheme, will open for applications on 01 March.
Kenneth Gibson MSP said:
“I am delighted that the SNP Government will help 5,000 home buyers into affordable home ownership in the coming financial year, underpinned by £160 million. Importantly, this new funding is specifically targeted to support thousands of low income individuals and families across Scotland get on or up the housing ladder.
“Since 2007, OMSE has helped over 6,000 first time buyers who would not otherwise be able to afford to buy their first home. Through Help to Buy, 7,500 households have already been helped to buy a new build home and over the next three years our successor Help to Buy scheme will help another 7,500 as well as boosting the home building industry, and support jobs across Scotland. The funding is also good news in particular for the small and medium sized enterprise sector of the housing industry. Hundreds of small businesses will benefit from people buying new affordable homes across urban and rural Scotland.
“Homes for Scotland and the Council of Mortgage Lenders expressed clear views about how Help to Buy should be improved. Scottish Ministers listened carefully and worked with them to develop the scheme to support industry and buyers as much as possible.”
Homes for Scotland Chief Executive Nicola Barclay welcomed further support adding:
"Help to Buy will enable more people to realise their dreams and keep the housing market moving. Providing builders with the certainty they need to plan their investment and construction programmes is crucial if they are to deliver the homes we need."
Allan Callaghan, Managing Director of Cruden Homes West, said:
"The Scottish Government listened to the construction sector and considered the significant role that Help to Buy played in supporting stability, job creation and economic growth. The impact of introducing a successor to this scheme will be felt across the sector - from larger operators with significant developments to those on a smaller scale. We warmly welcome its successor as a catalyst to support a new generation of Scottish homeowners for years to come.
House builders may register to apply to the Help to Buy scheme with immediate effect.
For OMSE, priority access is provided to social renters, disabled people, members of the armed forces, veterans who left the armed forces within the past two years, and widows, widowers and partners of service personnel for up to two years after he/she was killed whilst serving.