Since 2013 Scotland’s Help to Buy scheme has helped more than 12,000 households move into a new build home. An additional £100m investment will extend the scheme for two further years. This could help around 4,000 households purchase a new build home.
To date it is estimated that Scotland’s Help to Buy Scheme has contributed over half a billion pounds in Gross Value Added to the economy.
Housing Minister Kevin Stewart said:
“Since we introduced Help to Buy, the scheme has not only helped thousands of buyers into new homes - it has supported around 9,000 jobs.
“A third of the annual £50 million budget – £18 million – will be reserved for sales from SME builders, who were particularly affected by the drop in development finance after the financial crisis.
“We know house builders still see Scotland as a place to continue to develop and invest, with the latest figures showing new house completions grew by 5% over the last year.
“Housing is about more than bricks and mortar – we want to provide safe, warm homes, help create a fairer Scotland, and preserve a diverse and more resilient construction sector.”
Nicola Barclay, Chief Executive of Homes for Scotland, which represents companies building the majority of the country’s homes, said:
“With most Scots wanting to own their own home and the scheme proven to increase build rates, this is a very welcome announcement. It clearly demonstrates that the Scottish Government supports the aspiration of home ownership and recognises the real challenge that continues to face prospective buyers in terms of the size of deposit they require to achieve this goal.
“This additional funding will provide our member companies with the certainty that they need to invest in and open up new sites and expand the number of homes available to new purchasers. Crucially, just as the scheme’s extension will ensure even more people can buy a home, it will also ease pressure in other parts of the housing market as people move into home ownership from socially rented homes and come off council house waiting lists.”
Alan Baxter, Regional Director – LSL Land & New Homes commented that “Help to Buy's extension in Scotland is welcome news for new build buyers. The Scottish residential market remains a sellers market due to shortage of stock, particularly in the central belt area. This in turn is making new build option increasingly the choice for many millennials and buyers migrating from the private rented sector. Help to buy is a great enabler for this profile and will be an important incentive in the years to come.”