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Help To Buy (Scotland) Scheme Extended

Posted 12 June 2020 by Keith Osborne

The Scottish government has confirmed that it is extending its Help to Buy scheme to March 2022...

The Scottish government has confirmed that it is extending its Help to Buy scheme to March 2022.

First Minister Nicola Sturgeon said: “In recent years the scheme has helped 17,000 people, more than three quarters of them aged 35 or under, to buy new build homes. It has also, of course, been a valuable support for housebuilders.

“At present, of course, the pandemic means that the scheme is not being used so by confirming that it is being extended we hope that we can ensure that more people who may otherwise have missed out on this scheme are able to move in to new homes in the future and also that we are able to provide a bit more confidence for the construction sector.”

Under the scheme, which was due to finish in March 2021, the government provides an equity loan of up to 15% of the cost of buying a new build home, recovering that percentage when the property is sold or the share bought out.

The government has announced it will provide another £55 million of funding for 2021/22, which it believes will benefit over 2,000 buyers of new build homes, as well as assisting housebuilders themselves in ensuring their economic recovery over the post-pandemic years ahead.

Housing minister Kevin Stewart commented: “Extending this scheme will help more people to buy a new build property, particularly those who have suffered lower levels of income and have used up savings due to the impact of COVID-19 in recent months.”

The announcement has been warmly welcomed by the housebuilding industry as a much-needed boost to buyers and the industry.

Nicola Barclay, chief executive of Homes for Scotland, said: “Having the extension of the Help to Buy scheme… is also a much required confidence booster for the housing market that will help ensure even more younger Scots can benefit from this hugely successful initiative and realise their aspirations of owning their own home.

“The First Minister paid tribute to the very responsible approach that has been adopted by the industry during the lockdown, and this is a sentiment I wish to echo loudly. Home builders have stepped up to the plate supporting their customers, employees and local communities, and this will continue as we look forward to working closely with government and other stakeholders to rebuild Scotland’s economy.”

Innes Smith, CEO of Springfield, commented: “This is welcome news for the housebuilding industry in Scotland and the wider community as we look to reboot the economy post lockdown. It’ll provide a helping hand to people looking to buy a new home at a time when interest rates are low and mortgage availability in Scotland remains good. As a result of lockdown, there is increasing demand for the type of larger housing, with gardens, outside of the cities that we offer at our Village developments, and the extension of the Help to Buy scheme will enable more customers to make this lifestyle transition.”

 

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