Housing Industry Backs Building Scheme

Seven companies have successfully bid to take part in a £2.5 million trial to allow an extra 100 first time buyers to buy a new shared equity home.

Participating developers will take equity stakes jointly with the Scottish Government in unsold or partially built private stock.

Buyers will pay 60-80 per cent of the purchase price with the remainder of the cost split equally between the Scottish Government and the developer.

Housing and Communities Minister Alex Neil said: "I am pleased that some of the key players from Scotland's house-building industry have embraced this new trial.

"Continuing economic uncertainty puts into sharp relief the financial challenges facing the Scottish Government as we strive to increase the supply of affordable homes across the country.

"This Government will continue to work with the housing industry to develop the innovative ideas that will accelerate economic recovery, increase choice and opportunities for those looking for a home and support Scotland's house-building industry."


Chief Executive of home building industry body Homes for Scotland Jonathan Fair said: "Having pressed hard for the introduction of this scheme, I am absolutely delighted to learn the initial pilot has attracted so much support from the housing industry.

"Home ownership remains the tenure of choice for the vast majority of Scots but currently the big stumbling block, particularly for credit-worthy First Time Buyers, remains the availability of mortgage finance.

"This action by the Scottish Government supports the strenuous efforts already being made in this area by individual home builders."

The successful developers are:

* Persimmon Homes

* Bellway Homes

* Cruden Homes

* Parc Craigmillar

* Bett Homes

* Highland Housing Alliance

* Taylor Wimpey

Homes available through the New Supply Shared Equity with Developers trial will be marketed by the developers.

The trial scheme is part of the existing Low-cost Initiative for First Time Buyers (LIFT) New Supply Shared Equity (NSSE) scheme.

When the owner decides to sell their home, the Government and developer will receive the value at the time of sale of the percentage equity stake funded.

Properties available through the scheme will be entry level homes for first time buyers on low or moderate incomes, so would not normally be expected to exceed an upper price limit of £140,000 per unit (except where agreed for larger family properties).

(GK/BMcC)