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New Equity Scheme Available for New-Build Homes in Scotland

The Scottish Government is providing a new £195m equity scheme designed to assist around 6500 homeowners in buying a new-build home.

The scheme, which is a successor to the existing Help to Buy programme, focuses on affordable housing and will be spread out over the next three years.

Residents eligible for the new scheme will be given an equity loan they can use to help buy a new-build home.

The house-building industry will receive around £500m worth of funding over a period of six years.

Social justice secretary Alex Neil said that providing access to quality housing is an important part of the Scottish government’s campaign to sustain economic growth, build stronger communities, promote social justice, and combat inequality.

By concentrating resources on affordable homes, the scheme will improve access by assisting individuals and families who want to purchase a new-build home.

By the time the new scheme ends, combined with assistance through Help to Buy, an estimated 14,000 households will have been helped to buy a new-build home.

Mr Neil said that the Scottish government will have also accomplished its five-year plan of 30,000 affordable homes by March 2016. The intended investment in creation of affordable housing opportunities will surpass £1.7bn.

He pointed out that conditions in the housing sector have continued to improve under the new government. Homelessness and repossessions have fallen in number, and there has been a sixth consecutive annual decrease in waiting lists for housing.

The Right to Buy has been abolished, which prevents up to 15,500 social homes from being sold over the next ten years, and the new funding has enabled councils to build new homes for the first time in thirty years.

Mr Neil said that this significant investment means that through Help to Buy and its successor, the Government will have invested nearly half a billion pounds in affordable housing over six years, giving both the construction industry and private sector a large boost.

After the UK Government’s spending review, full details about qualification criteria will be revealed in November.

The scheme will enable over 700 new homes to be built in Pennywell by Urban Union Ltd, a regeneration firm that is a joint venture between construction firms Robertson Group and McTaggart Construction.

 

Structural Defects Insurance

Managing director Graeme Nicol said that Help to Buy has been extremely popular, and that most of the buyers at the firm’s developments at Laurieston in Glasgow and Pennywell in Edinburgh received funding through the scheme.

Cammy Day, housing leader for the City of Edinburgh Council, explained that many people have been priced out of the market due to increased housing costs in the city, making it impossible for them to get on the property ladder.

Mr Day said he hoped that the new scheme means that more Edinburgh residents will benefit from Help to Buy and that more projects like Pennywell, which has played an important role in regenerating the local area, will be brought forward.

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