£100 million investment in scheme to assist home buyers.
The Help to Buy (Scotland) scheme will be extended beyond 2019, helping more people purchase a new-build home without the need for a large deposit.
From April 2019, a further £100 million will be invested over two years, helping up to 4,000 households to purchase a new home.
Since 2013, the scheme has supported more than 12,000 households into a new home.
Housing Minister Kevin Stewart made the announcement during a visit to Calderwood Village, Coatbridge.
Mr Stewart said:
“Since we introduced Help to Buy, the scheme has not only helped thousands of buyers into new homes - it has supported around 9,000 jobs.
“A third of the annual £50 million budget – £18 million – will be reserved for sales from SME builders, who were particularly affected by the drop in development finance after the financial crisis.
“We know house builders still see Scotland as a place to continue to develop and invest, with the latest figures showing new house completions grew by 5% over the last year.
“Housing is about more than bricks and mortar – we want to provide safe, warm homes, help create a fairer Scotland, and preserve a diverse and more resilient construction sector.”
Nicola Barclay, Chief Executive of Homes for Scotland, which represents companies building the majority of the country’s homes, said:
“With most Scots wanting to own their own home and the scheme proven to increase build rates, this is a very welcome announcement. It clearly demonstrates that the Scottish Government supports the aspiration of home ownership and recognises the real challenge that continues to face prospective buyers in terms of the size of deposit they require to achieve this goal.
“This additional funding will provide our member companies with the certainty that they need to invest in and open up new sites and expand the number of homes available to new purchasers. Crucially, just as the scheme’s extension will ensure even more people can buy a home, it will also ease pressure in other parts of the housing market as people move into home ownership from socially rented homes and come off council house waiting lists.”
Help to Buy (Scotland) is open to first time buyers and existing homeowners, and provides up to 15% of the purchase price of a new build home. The maximum purchase price is £200,000.
More Homes Scotland is the overarching approach to bring together all activity to increase supply.
Around two thirds (66%) of Help to Buy (Scotland) households were first time buyers, whilst around a third (34%) were existing home owners.
Around half (50%) of buyers were aged 30 years or under, with over three-quarters (76%) of buyers aged 35 or under.
Help to Buy (Scotland) was launched on 30 September 2013. £313 million was invested during the first three years (2013/14 – 2015/16) of the scheme. A further £195 million was committed from 2016/17 - 2018/19.