First-time buyers in Scotland are set to receive further support as the Scottish Government prepares to open the first round of applications for the new First Homes Fund by the end of June.
The scheme is designed to help people take their first step onto the property ladder by offering a contribution of up to £10,000 towards the purchase of their first home. The support will be available for eligible buyers purchasing a property in Scotland with a value of up to £300,000.
How will the First Homes Fund work?
The First Homes Fund will operate as a shared-equity scheme. This means the buyer will take title to the property, while the Scottish Government will provide funding towards the purchase in return for an equity share in the home.
It is understood that there will be no monthly repayments to the Scottish Government and no interest will be charged on the contribution. In most cases, the Scottish Government’s equity share would be repaid when the property is sold.
Who will be eligible?
The fund will be available to first-time buyers in Scotland who are purchasing a new build or existing property with a mortgage.
For the purposes of the scheme, a first-time buyer is someone who does not currently own, and has not previously owned, a property in Scotland or anywhere else in the world.
How much support could buyers receive?
Eligible buyers may be able to receive up to £10,000 towards the purchase of their first home.
The property being purchased must be valued at £300,000 or less.
The Scottish Government has indicated that the first phase of the fund is expected to support around 2,000 households in the first 100 days of the new Government, with a longer-term aim of supporting 50,000 first-time buyers over the course of this Parliament.
Full details of the scheme, including how to apply and any further eligibility requirements, are expected to be released in due course.
Mark Allan, Partner at James & George Collie, commented: “The Scottish Government’s announcement is a welcome boost for first-time buyers looking to take their first step onto the property ladder. Any additional support is particularly helpful where buyers are otherwise mortgage-ready but need assistance bridging the gap between their savings and the funds required to purchase.”
“Full eligibility guidance is still awaited, so early advice will be important.”
What does this mean for first-time buyers?
For many first-time buyers, saving enough money to buy a home can be one of the biggest challenges. The First Homes Fund may provide welcome support for those who are ready to buy but need additional help to make a purchase possible.
With applications expected to open by the end of June, prospective buyers may wish to start considering their options and seek advice at an early stage.
Buying your first home can feel daunting, but having the right support in place can make the process much clearer. From noting interest and submitting an offer to concluding missives and collecting the keys to your new home, our experienced residential property team can guide you through every stage of the purchase process.
If you’re considering buying your first home, get in touch with James & George Collie to find out how we can help you take the next step with confidence.