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Scheme helping thousands to buy their own home.
More than 8,000 households have now received support to own their own home through the Help to Buy (Scotland) scheme, Social Justice Secretary Alex Neil has announced.
Since 2013 the Scottish Government has invested £500 million to help first time buyers and existing home owners purchase a new build home through the original Help to Buy scheme and the successor Help to Buy (Scotland) Affordable Home Ownership.
Over the six-year period this major investment is expected to help up to 15,000 households across Scotland and support jobs in the construction sector.
Social Justice Secretary Alex Neil said:
"With 8,000 households now helped to buy their own home and with the new scheme expected to support up to 7,500 more individuals and families to own a new home over the next three years, Help to Buy (Scotland) is making a real difference to people in Scotland.
"By targeting our resources at affordable homes our new scheme is tackling inequalities and widening access to home ownership, plus providing the private sector and construction industry with a huge boost.
"We are also supporting people on low to moderate incomes with £80 million allocated to our popular Open Market Shared Equity Scheme (OMSE) to help up to 2,000 first time buyers."
A number of sales are still expected to complete from the 2015/16 scheme year – but due to annual budget restrictions home builders have been informed that the funds must be drawn down by March 31.
The original scheme will continue to support completions until mid-April with funds drawn down by the end of March while the successor scheme is already open for applications and will run until 2019.
The successor scheme will have a stronger focus on affordable new build homes and will include on-going support for smaller (SME) developers.
Support is available on new build homes from participating home builders on homes up to a maximum value of £230,000 for purchases which complete on or before March 31, 2017, £200,000 for purchases on or before March 31, 2018, and £175,000 for purchases on or before March 31, 2019.
The Help to Buy (Scotland) scheme will end on March 31, 2016 and no financial assistance can be provided by the Scottish Government past this date. Final settlement of these transactions can take place up to and including April 14, 2016, but funding must be drawn down from administering agents on or before March 31, 2016.
Help to Buy funding comes directly from UK Treasury and it must be spent in the financial year which it is allocated.
More information about the new Help to Buy (Scotland) Affordable New Build and Smaller Developers Schemes is available at: www.gov.scot/htb.