As many as 2,000 first-time buyers are being offered a £10,000 contribution towards a deposit.

The move is part of the first phase of the Sottish Government’s First Homes Fund.

It is a shared-equity scheme designed to help first-time buyers onto the property ladder, and is available on homes with a price tag of up to £300,000.

Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville (pictured) says: “We know how hard it is to get that first foot on the property ladder and the opening of this fund is a direct response to stories I have heard from so many people who are keen to buy their first home.”

The opening of this fund is a direct response to stories I have heard from so many people who are keen to buy their first home.”

She adds: “The First Homes Fund is part of a broader programme of action, supported by a record £4.9billion investment in affordable housing over the next four years.

“We promised to act to make life easier for many and fairer for all and, through the First Homes Fund, we are delivering on that promise.”

Participating lenders

Lenders who have so far signed up to the scheme, include Leeds Building Society, Scottish Building Society, Glasgow Credit Union, Nat West, Lloyds Banking Group.

Homes for Scotland’s Chief Executive Jane Wood said: “Supporting first-time buyers is essential, not only in helping to address Scotland’s existing housing need, with 693,000 households affected, but also in stimulating wider socio-economic growth across the country by unlocking investment confidence across the sector, particularly in areas where development viability can be more marginal and help increasing delivery of housing of all tenures where it is needed most.

“Homes for Scotland is ready to help support the efficient delivery of the Fund so that all stakeholders, particularly those young people buying their first home, are ready and prepared for the launch of the scheme.”

Opening date

The scheme officially opens today – 24th June – and is open to first-time buyers who have not owned, or previously owned a property in Scotland or anywhere else in the world.

The Scottish Government will have an equity share in the property in the form of a security – although the homeowner will own and full title to the property.

On the offered deposit, no month payments are made to the Scottish Government and no interest is charged.
The Scottish Government’s percentage equity share would normally be repaid when the home is sold or a payment event is triggered in line with the terms of the shared equity agreement.