More Help For First Time Home Buyers

6th September 2012

Funding for a scheme to help people get on the housing ladder has been doubled, Cabinet Secretary for Infrastructure and Capital Investment Alex Neil announced today.

The Scottish Government has increased the budget for the Open Market Shared Equity Scheme from over £10 million to over £20 million.

The scheme will now be extended to accept applications from all first time buyers.

Previously, only priority groups, including people who rent from either a council or housing association, members of the armed forces and veterans - were eligible to apply.

The scheme lets people pay for between 60 and 80 per cent of their home. The government funds the remaining amount by taking an interest-free equity stake.

Mr Neil said:"Many first time buyers may not be able to afford a large deposit to help them buy their first home.

"That is why we are doing all we can to help people on low to moderate incomes across Scotland get on the property ladder where it is affordable for them.

"Doubling the funding for our shared equity scheme means that all first time buyers can now apply. It is good news for households and families wishing to purchase their first home and also helps second-steppers who wish to move home.

"We are also helping first time buyers by operating two other shared equity schemes - the New Supply Shared Equity Scheme and the New Supply Shared Equity with Developers Scheme.

"All this action helps the economy by kick-starting more house building and sustaining substantial numbers of construction jobs."

Mark Hill, from Dunblane, a former soldier who served in the Royal Electrical & Mechanical Engineers said:

"Nearing the end of my Colour Service and having lived in married quarters for the majority of the time it became apparent that I would need to get on the housing market quickly.

"I was informed of the LIFT scheme by the Scottish Government offices whilst enquiring about Council Housing entitlement.

"The scheme has allowed me to buy a home and settle my family in Dunblane, Scotland, and get on the housing market without scrimping and scraping to make ends meet.

"Overall the service provided by LIFT was absolutely fantastic.

Craig Sanderson, Chief Executive, LINK Housing Association said:"This is excellent news and will help many families to obtain a home of their choice.

"I welcome the Scottish Government's extension of this initiative which will have a 'knock-on' effect of releasing much-needed housing available at rents affordable to people in low -paid employment or on limited fixed incomes."

Find out more about LIFT at
www.scotland.gov.uk/Topics/Built-Environment/Housing/BuyingSelling/lift