Extension to Help to Buy scheme

Smaller housebuilders to benefit from £30m scheme

CampionA £30 million boost to the Help to Buy scheme will be aimed at homebuyers purchasing from smaller housebuilders, it was announced today.

The Scottish Government unveiled the new money in November and today said it will assist the country’s 170 smaller developers.

Under the scheme the government takes an equity stake of between 10% and 20% of the value of the property which can be repaid at any time. So far £305m has been provided by the government but the funding for this year was fully allocated within weeks.

It has helped 4,100 homebuyers over the past 15 months and the new funding will assist a further 750.

During a visit to a new Campion Homes development in Leven, Fife, First Minister Nicola Sturgeon said: “The Scottish Government is supporting the housebuilding industry and Help to Buy (Scotland) is one of the creative ways we are stimulating new development, opening up the market to thousands of house buyers.”

She said that because large housebuilders had been the biggest beneficiaries so far, the new money would be ringfenced for smaller firms.

“These are often in remote locations and keep much needed jobs and skills in rural areas, while having a positive knock on impact on the wider economy,” she said.

Pete Bell, chairman and managing director of Campion Homes said: “I am particularly pleased that the scheme is now restricted to houses costing a maximum of £250,000 as this will allow more first time buyers to get on the property owning ladder.”

Industry body Homes for Scotland helped shape the new scheme and has lobbied for an extension.

Chief executive Philip Hogg said: “The Help to Buy (Scotland) scheme has been hugely successful, with proven demand demonstrating the aspiration of thousands of Scots to own their own home.”

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