The Scottish Government will open the first application round for its First Homes Fund by the end of June, offering up to £10,000 towards the deposit on a first home. The shared-equity scheme will cap eligible property values at £300,000 and is designed to help first-time buyers onto the housing ladder.

Ministers expect the initial phase to assist around 2,000 households within the Government's first 100 days, with a total of 50,000 first-time buyers supported over the course of this Parliament. The fund will be available to those purchasing either a new-build or an existing property with a mortgage.

Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville confirmed the scheme's launch timetable to the Scottish Parliament.

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Ms Somerville said: "For too many people across Scotland, particularly younger people and first-time buyers, home ownership has felt increasingly out of reach. In communities the length and breadth of our nation, we are hearing the same story; people saving what they can but finding that the cost of a deposit is simply too great a barrier.

"That is the context in which this Government will act. This is a direct response to the experience of people across Scotland. We have listened and are taking fast, decisive action.

"The Fund sits within a broader programme of action and supported by a record £4.9 billion investment in affordable housing over the next four years.

"We promised we would support first time buyers and we are delivering."

Under the scheme, a first-time buyer is defined as anyone who does not own, and has not previously owned, a property in Scotland or anywhere else in the world. The Scottish Government contribution of up to £10,000 will be provided in return for an equity share in the home. Buyers will own and hold title to the property, will not make monthly payments to the Government, and no interest will be charged. The Government's percentage equity share would normally be repaid when the property is sold.

Further details on how to apply will be set out in due course.