Plans by the Scottish Government to introduce interest-free loans of up to £10,000 for first-time purchasers have received a cautious welcome from three of the nation's leading housebuilders. Launching in June, the newly established First Home Fund will target properties valued up to £300,000 in an effort to assist more individuals in securing their first property.

Head of Sales for Dandara Scotland, Claire Bathgate, whose firm operates developments in Aberdeen and East Lothian, emphasised the critical nature of supporting new buyers. She stated: "Anything that helps first-time buyers in Scotland is hugely positive news. Without them, the entire housing market slows down. Amid the ongoing cost-of-living pressures, many first-time buyers tell us it feels harder than ever to save for a deposit and owning a home can seem like an impossible dream."

Bathgate expressed hope regarding how the capital will be rolled out, adding: "We hope the scheme is distributed fairly and in well-spaced tranches. With previous Scottish Government initiatives, much of the funding appeared to be allocated very quickly after launch. As a result, it often benefited buyers who were already close to purchasing homes and able to move fast, rather than bringing much-needed new buyers into the market." She concluded: "What we would really like to see is an exemption for first-time buyers from paying LBTT on all properties, as that would make a really significant difference."

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Craig Fairfoull, Group Director at Dundas Estates, also viewed the initiative positively, noting its timely arrival amid broader financial challenges. He commented: "This is extremely positive news for first-time buyers in Scotland. It's particularly encouraging that the scheme supports both new-build and existing properties, while allowing buyers to repay the interest-free loan only when the home is sold. The announcement couldn't have come at a better time. Following this week's news of rising fuel bills, many households are facing growing affordability pressures, so measures like this will provide much-needed support and reassurance for aspiring homeowners." Fairfoull further remarked: "Coupled with reports that some of the UK's biggest lenders are cutting mortgage rates, the outlook for the Scottish property market is becoming much more encouraging."

Highlighting the changing demographics of new purchasers, Jamie Thomson, Commercial Director of Lochay Homes Limited, underscored the necessity of supporting this sector. He noted: "Supporting first-time buyers in Scotland is vitally important. The average first-time buyer in Scotland is now aged between 30 and 32, and many already have families. They are desperate to secure a stable future, move out of rental accommodation and into a home of their own."

However, Thomson raised queries regarding whether the assistance will prove sufficient given current market realities. He observed: "While this new scheme will undoubtedly help buyers, there are questions over whether it goes far enough. A previous Scottish Government scheme offered a more generous £25,000 equity loan and, with the average first-time buyer deposit in Scotland now exceeding £43,000, affordability will remain a major challenge for many aspiring homeowners."