THE Scottish Government has promised more cash to help first-time buyers get on the property ladder.
Keith Brown, Minister for Transport and Housing, announced an extra £4.65million has been allocated to the Open Market Shared Equity (OMSE) Scheme to help those on low to moderate incomes into home ownership.
In the past four years the Low-Cost Initiative for First Time Buyers (LIFT) shared equity schemes, which OMSE is part of, has helped over 5,600 people buy a home.
The new funding allocation almost doubles the OMSE budget from £4.75million to £9.4million and means that the Scottish Government can aim to help over 250 more first time buyers in Scotland to buy their first homes under the scheme.
Through the Open Market scheme, buyers can own a home, but only pay for a proportion of it – between 60 and 80 per cent of its value – with the Government funding the remainder through taking an interest-free equity stake.
The buyer does not pay any charges on the equity stake, but pays the Scottish Government a proportion of the sale price at the time of sale, or earlier if they wish.
There are limits set on the price of homes that can be bought under the open market scheme to ensure that only ‘starter’ properties are available through the scheme.
Mr Brown said: “The Scottish Government has already ploughed millions into a variety of shared equity schemes to help people get onto the property ladder as this will benefit not only those potential new homeowners, but will also help the Scottish housing market.
“We remain committed to continuing support to assist first time buyers under our Low-Cost Initiatives for First Time Buyers shared equity schemes.
“Once in the property, buyers then have the option to increase the share they own over time and eventually own the property outright.“