24th June 2026
Up to 2,000 households could be supported to make their step on to the property ladder in the first 100 days of this Government through the First Homes Fund.
The first phase of the shared-equity scheme, which offers first-time buyers a £10,000 contribution towards a deposit, is now open. Over the course of this Parliament it is expected around 50,000 households will benefit from the £500 million scheme.
The deposit contribution can made used to buy any property with a value of up to £300,000.
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.”
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.
“HFS is ready to help support the efficient delivery of the Fund so that all stakeholders, particularly those young people buying their first home, are ready and prepared for the launch of the scheme.”
Background
The First Homes Fund is a shared-equity scheme and opens to applications on 24 June 2026. A first-time buyer is anyone who does not own, or has not previously owned, a property in Scotland or anywhere else in the world.
The Scottish Government will have an equity share in the property in the form of a security, although the homeowner will own and have full title to the property. There are no monthly payments to be made towards the Scottish Government and no interest will be charged. The Scottish Government’s percentage equity share would normally be repaid when the home is sold or a payment event is triggered in line with the terms of the shared equity agreement buyers enter in to.
So far the following lenders have signed up to the scheme – the Scottish Government expects more will follow in the coming months:
Leeds Building Society
Scottish Building Society
Glasgow Credit Union
Nat West
Lloyds Banking Group