The Scottish government has confirmed that the First Home Fund will relaunch by the end of June, a move welcomed by property firms across Scotland as pressure continues to build on first-time buyers trying to get onto the housing ladder.
Among those backing the return of the scheme is ESPC, which said it had been lobbying for the fund to be reinstated and expanded ahead of this month’s elections.
The portal said financial support remains crucial for buyers in higher-value markets such as Edinburgh and East Lothian, where affordability pressures continue to limit access to homeownership.
However, ESPC also warned that a reduced level of support under the revised scheme may limit its effectiveness in more expensive parts of the market.
The relaunched First Home Fund will provide a maximum deposit of £10,000 for first-time buyers purchasing a property up to the value of £300,000, with the scheme aiming to help 50,000 buyers over the next five years.
Paul Hilton, CEO of ESPC, commented: “I am delighted to see that the First Home Fund is being brought back, and so soon into the new administration. We know that the demand for this fund is incredibly high – in fact, its last outing in 2021 had such exceptional demand that the scheme used up a year’s worth of funding in only eight days and had to close applications. Its successor, the OMSE scheme, reached its capacity within a month of opening. It’s evident that first-time buyers are in need of financial assistance more than ever, particularly in areas where the property prices are higher than average.
“However, my excitement at the restoration of this scheme is tinged with concern that the help offered is now worth significantly less than it was in 2021; back then, the scheme offered buyers help of up to £25,000, which has now been reduced to a maximum of £10,000.
“Overall, the funds will stretch further to help greater numbers of buyers, and the threshold for property values has been increased, but obviously the impact of the support will be limited for individual buyers, as property prices have continued to rise over the last five years.
“Any assistance is better than none at all, of course, but it is worth discussing that despite the great hurrah surrounding the return of this scheme, the First Home Fund is now materially less valuable to its beneficiaries than it was five years ago.”
Read the orginal article: https://propertyindustryeye.com/major-first-time-buyer-scheme-to-relaunch-next-month-government-confirms/?utm_source=rss&utm_medium=rss&utm_campaign=major-first-time-buyer-scheme-to-relaunch-next-month-government-confirms
