A planned £5 million initiative will support Scotland’s house builders and help first time buyers trying to get on the property ladder.
Housing Minister Alex Neil said that the scheme, backed by £2.5 million from the Scottish Government, was run for trials in 2010 to assist around 100 people on low to moderate incomes to buy a new shared equity home.
Now a fresh call for bids from developers has been made today by the Scottish Government with double the funding. The New Supply Shared Equity with Developers scheme involves participating house builders taking equity stakes jointly with the Scottish Government in unsold or partially built new properties.
Buyers will pay 60 to 80% of the purchase price with the remainder of the cost split equally between the Scottish Government and the developer.
Key players from Scotland’s house building industry embraced this new scheme when it was piloted last year. That is why the Scottish Government is building on the success of the trial scheme by doubling the funding from £2.5 million to £5 million,’ said Neil.
‘We will continue to work with the housing industry to develop innovative ideas that will accelerate economic recovery, increase choice and opportunities for those looking for a home and support Scotland’s house building industry. This is part of the Government’s housing strategy for the long term, which we will set out in full next month,’ he added.
Jonathan Fair, chief executive of home building industry body Homes for Scotland said that despite the challenging economic backdrop, the number of Scots aspiring to home ownership has increased by 20% since 2007 but mortgage lending still remains heavily constrained.
‘Following the success of last year’s pilot, we are delighted at the full launch of the New Supply Shared Equity with Developers initiative. Such support will not only assist our members to increase the production of desperately needed new homes, it will also help deliver the significant social and economic benefits which arise from them,’ he added.