News of the Scottish Government’s decision to extend funding of its hugely successful Help to Buy shared equity scheme for two more years has been applauded by home builders who described it as good news for buyers and Scotland as a whole.
Over twelve thousand households have already used the scheme to purchase qualifying new build homes with only a five per cent deposit since Help to Buy was first introduced in Scotland in 2013. This, in turn, has supported an estimated nine thousand jobs and contributed over half a billion pounds in Gross Value Added to the economy.
Nicola Barclay, Chief Executive of Homes for Scotland which represents those organisations building the majority of the country’s homes, said:
“This is great news on a number of different fronts as the Scottish Government clearly recognises the value and wide-ranging benefits that its Help to Buy initiative provides.
“By allocating further targeted funding until 2021, it is not only extending the opportunity of home ownership to more Scots who are currently saving to buy their own home but will also provide the much-needed confidence and certainty that housebuilding companies need to continue to invest and grow their businesses in Scotland. This positive message is fundamental to helping us work together to increase the supply of new housing.
“It is essential to remember that, as well as being directly responsible for additional new homes being built, Help to Buy is also relieving pressure on the public sector with earlier figures showing that around five per cent of purchasers have moved from social rented housing and a further five per cent were on a social housing waiting list.
“With Help to Buy providing an equity stake that is repayable to the Scottish Government, and with receipts received to date higher than projected, the scheme is already demonstrating its value as an effective housing policy driver for the delivery of new homes, enabling Scots to purchase a new-build home without the need for a large deposit, and with very little impact on the public purse.”