People across Scotland are to be given a hand onto the housing ladder after the Government unveiled a £120m funding boost.

The funding will be made available over the next two years to both first time and existing homeowners who are buying a new build home.

Buyers who successfully apply to use shared equity will then be able to purchase a home by paying a majority share in it, while the Scottish Government pays the remaining amount under an agreement with the buyer. As well as helping house buyers, the scheme will stimulate the construction industry and create growth within the house-building sector.

The Scottish Government is currently working with stakeholders to develop the scheme.

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Speaking at the Homes for Scotland Annual Conference, Deputy First Minister Nicola Sturgeon said: "People in Scotland who should rightly be able to afford a mortgage are still facing real challenges buying a home.

"We are well aware of the challenges that people face and want to continue to do all we can to help. The £120 million funding announced today will not only help people to buy their first home, they will also help 'second-steppers' to be able to sell their home and to move to another property.

"But this is not only about helping people to buy houses. Our actions are also stimulating the economy. By supporting house buying and construction, we are creating new work for the sector and supporting jobs.

"This demonstrates that in these tough financial times the Scottish Government will step in, both to help households and crucial sectors of our economy like house building."

The £120m fund is part of an additional £290m of restricted loan and equity investment funding falling from the recent UK Budget. This is not additional capital grant to the Scottish Government, but is additional loan fund money that will have to be repaid.

(JP/MH)