The Programme for Government published on 1 September 2015 announced a successor to the Help to Buy (Scotland) Scheme with the allocation of 3 year funding of £195 million to help up to 7,500 households to buy an affordable new build home from a participating home builder. On 21 January 2016, the Cabinet Secretary for Social Justice, Communities & Pensioners’ Rights announced that the Help to Buy (Scotland) Affordable New Build Scheme was open for home builders to register and that applications to the new scheme would start from 1 March onwards.
Maximum purchase prices and allocated budgets
|Scheme Year ||Ceiling Price ||Budget || |
Smaller Developers budget share
|2016/17 ||£230,000 ||£80m ||£21.6m |
|2017/18 ||£200,000 ||£65m ||£18.8m |
|2018/19 ||£175,000 ||£50m ||£18m |
Registering for the scheme
All home builders can register to participate in the Help to Buy (Scotland) Affordable New Build and Small Developer schemes. There are no separate registration processes for the main scheme and the Smaller Developers scheme.
Home builders should send an email request for a Registration Form from firstname.lastname@example.org. You will receive a copy Registration Form and once you return a completed copy of this you will then be sent a Participation Agreement which you are strongly advised to read and to take your own advice on in the first instance before signing and returning a copy.
Guidance for Home Builders
The Guidance for Home Builders should be read by all builders. It provides an overview of the scheme, contact details of the administration agents and a list of the large builders. We encourage you to read this before you submit a Registration Form.
Home builders should send an email request for a Registration Form from email@example.com.
All home builders will be expected to enter into a Participation Agreement with Scottish Ministers. Once the Registration Form has been approved you will be forwarded a Participation Agreement between your company and Scottish Ministers which they should sign and return.
The name of the Company who will be entering into the Participation Agreement with Scottish Government should be the name entered on all documents relating to the reservation, application and sale of eligible properties.
To speed up the registration process builders should initially submit an electronic version followed by a hardcopy of the signed document.
Once registered the company will be added to list of Registered Builders within a week. Please note that the registration of developments does not guarantee the allocation of funds, funds are allocated on a first come, first served basis.
Assistance will be offered to buyers who wish to purchase a new build home from a home builder who has registered with the Scottish Government to participate in the Help to Buy (Scotland) Affordable New Build scheme.
The scheme will not be available for part-exchange, buy-to-let or self-build properties.
Applicants can apply up to nine months in advance of the anticipated completion date. Applicants should apply at least three months in advance of the completion date to allow the necessary legal paperwork to be completed.
The maximum property sale prices for Help to Buy are as follows:-
• For financial year 2016/17 for transactions completing up to 31st March 2017, the threshold price is £230,000;
• For financial year 2017/18 for transactions completing up to 31st March 2018, the threshold price is £200,000;
• For financial year 2018/19 for transactions completing up to 31st March 2019, the threshold price is £175,000;
Important - This means that if an application is submitted to the scheme and the anticipated completion date is after 31 March of that year (and it is therefore in the next financial year), the maximum threshold price for the year in which the transaction will complete will apply. This will be important for concluding missives and you should be aware of it.
For example – In November 2016, an application form is submitted to the scheme with an anticipated completion date of May 2017. The maximum threshold price of £200,000 will apply to that application.
Further information is available in the Guidance for Home Builders.
Help to Buy (Scotland) Branding
We have had approval from Westminster Government for the use of the ‘Help to Buy’ branding. The branding and associated guidelines are accessible to Scottish home builders from the Homes and Communities Agency (HCA) website.
The logo does not specifically say ‘Help to Buy (Scotland)’ and the term ‘Help to Buy (Scotland) Scheme’ should be used in any supporting text.