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Scottish government comes up with extra £40m help to buy funding

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Scottish government comes up with extra £40m help to buy funding

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Published by Max Salsbury for 24dash.com in Central Government and also in Housing

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The Scottish government will invest an extra £40 million into the help to buy scheme, Deputy First Minister Nicola Sturgeon confirmed today.

Help to buy (Scotland) has allowed more than 1,100 people to buy a new home since its launch in September 2013.

The latest cash announcement brings the overall investment to £275m.

The scheme allows house buyers to purchase a home with just a 5% deposit, with the Scottish government taking an equity stake of up to 20% of the value of the property.

So far, 156 housebuilders have signed up for the initiative, with six mortgage lenders offering mortgages to buyers wanting to benefit from it.

Sturgeon said: “This additional £40m funding will allow more people in Scotland to buy their first home and continue to make it easier for ‘second-steppers’ and others to move to a new property.

“Since it launched in September last year, our help to buy scheme has already helped over 1000 households into home ownership and this additional funding will benefit even more families.

“It is also bringing much needed economic growth to Scotland by supporting our housing industry and creating employment opportunities. This is alongside our continued commitment to investing in affordable housing for communities across Scotland."

New Homes for Scotland chair Sandy Adam said: “A significant proportion of new homes are now sold through help to buy, delivering on the Scottish Government’s key objectives of providing more homes, creating more jobs and stimulating the economy.

“Additional investment, such as that announced today, and longer term support assisting developers with investment planning will help the industry to, quite literally, build on the scheme’s initial success and step up production to the levels required to meet housing need across all tenures.

“But this welcome boost for help to buy (Scotland) is valuable in another way. Many people in Scotland want to own their own home. Raising aspiration and confidence in this way can only be achieved through initiatives such as this.”

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