Help to Buy extended in Scotland

The initiative, which helps people purchase a new-build home without the need for a large deposit, has supported more than 12,000 households into a new home since 2013.

Up to 4,000 more households will be given assistance due to the extension.

Housing minister Kevin Stewart said a third of the new fund will be reserved for sales from SME builders.

Mr 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 £50m budget – £18m – 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.”

Douglas Cochrane, Chair of the Scotland Mortgage Committee at UK Finance, the trade association which represents the finance and banking industry operating in the UK including around 300 firms providing credit, banking, markets and payment-related services, said: “The extension of Help to Buy in Scotland is good news for buyers and home movers with low deposits, who will continue to receive vital support when buying a new-build home.

“Last year the number of first-time buyers in Scotland reached its highest level in a decade, boosted by vital schemes like Help to Buy.

“Today’s announcement will bring welcome stability to the Scottish mortgage market and help more people get a foot on the housing ladder in the years ahead.”