John Swinney backs First Home Fund Scotland with £10,000 deposit help
first home fund scotland applications will open by the end of June, giving successful first-time buyers a £10,000 contribution toward a deposit on their first home. The shared-equity scheme will be open to prospective owners making their first step onto the property ladder.
Shirley-Anne Somerville said the Scottish Government was acting on what people across Scotland have experienced, with deposit savings often the biggest hurdle. John Swinney said the government should back first-time buyers facing the cost of living challenge.
Somerville on deposit barriers
Speaking in Holyrood on Wednesday, Somerville said the policy was a direct response to the experience of people across Scotland. “This is a direct response to the experience of people across Scotland. We have listened, and we are taking fast and decisive action.”
She said the largest obstacle is often not mortgage repayments. “We know that the single biggest hurdle facing first-time buyers is often not their ability to repay the mortgage, it is the difficulty in saving for the initial deposit, the upfront cost that prevents them even entering the market.”
Somerville added that too many people cannot count on family help to bridge the gap. “We also know that too many people cannot rely on financial support from family to bridge that gap, and nor should they be expected to.”
John Swinney in East Lothian
Swinney made the case while visiting a housing development in East Lothian with Somerville. He said he wanted the new Scottish Government to support people with the challenges of the cost of living, and that housing-market access came up throughout the election campaign.
“I want to make sure that the new Scottish Government takes all the actions we can take to support people with the challenges of the cost of living, and one of those examples which percolated throughout the whole of the election campaign was the challenges of people accessing the housing markets.”
He said the government should back first-time buyers trying to enter the market. “I want to make sure the Scottish Government is on the side of first-time buyers aspiring to join the property ladder to make sure they’ve got the opportunity to take forward that step in life.”
First Homes Fund limits
The fund will support 2,000 households in its first phase over the first 100 days of the new Scottish Government, with support expected for 50,000 households over the course of the Parliament. The scheme will apply to homes worth up to £300,000, and the government says it is intended to help buyers in every part of Scotland.
For first-time buyers, the practical step is simple: applications are due to open by the end of June, and the scheme is aimed at those buying for the first time. The immediate test will be whether the first phase reaches the 2,000-household target quickly enough to match demand from buyers who have been waiting for a deposit break.
