Help to Buy sees 1200 applications in Scotland

Over 200 people in Scotland are in new homes since the Help to Buy scheme launched there on September 30 last.

More than 1200 households applied to the Scottish government’s version of the scheme which allows individuals to take out mortgages for new build properties on a shared equity basis.

Deputy First Minister Nicola Sturgeon met with new homeowners Phil and Joanne MacFarlane at Dawn Homes Group, Glasgow and gave an update on the success of the £220 million shared equity scheme.

Official figures show that 1,205 applications were received by the New Year for the scheme, which provides financial support to make buying a home easier.

From the launch in September until January this year, 203 households have so far successfully gained a mortgage and bought new homes through the initiative.

Help to Buy (Scotland) is open to all first time buyers and to existing homeowners buying a new build home from participating home builders. To date, 109 house builders have signed up, with five lenders offering mortgages under the scheme.

Ms Sturgeon said: “There is no doubt that getting onto, or moving up the property ladder has become tougher in recent years, which is why our Help to Buy (Scotland) scheme is crucial in helping more households take that step.

“Large deposits are often a major barrier to would-be homeowners and it is fantastic to see the first results of our Help to Buy scheme, which has already helped almost 200 households into home ownership since it launched in September.

“Help to Buy (Scotland) is not only helping people buy their first home, it also helps ‘second-steppers’ and others move to a new property and the popularity of the scheme is evident through the 1200 plus applications that have been received so far.

“The scheme is also helping stimulate economic growth by supporting our housing industry – alongside our commitment to investing in affordable housing across Scotland.”

The Scottish Government is providing help to eligible buyers of up to 20 per cent of the purchase of a new build home from a participating house builder.