11 March 2005
Public money is to be used to help first-time homebuyers in Scotland.
Communities Minister Malcolm Chisholm this week announced what he described as an innovative shared ownership scheme that will help people on low incomes who are unable to pay the full price of a property.
Under the Homestake scheme, a £10m fund will give first-time buyers up to 40% of the cost of a a housing association or open market property. The buyers will fund the remaining 60% through normal mortgage payments.
The assistance will be paid through grants provided by the Scottish Executive's agency, Communities Scotland.
The Executive estimates that around 300 homes will be provided under the scheme in the first year and that this will rise to 1,000 a year. Around 20 separate projects are due to start this year. A pilot scheme for Homestake in the open market is to be tested in Edinburgh and the Lothians this summer.
Announcing details of the scheme at the Chartered Institute of Housing's Scottish conference in Aberdeen, Chisholm said it formed a significant part of the Executive's low-cost home ownership investment programme.
He added: 'I believe it will prove an attractive option that will help people to bridge the awkward first step into home ownership, particularly helping first-time buyers and people on low incomes.'
Communities Scotland chief executive Angiolina Foster said Homestake was a welcome addition to the agency's programme.
Chisholm also announced a 23% increase in the Communities Scotland affordable housing investment programme, bringing the total to £404m for 2005/06.
PFmar2005
