Ruth Maguire MSP today welcomed the news that more than 2,000 households will be able to buy a new build home as the Help to Buy (Scotland) Scheme has been extended until March 2022.
The decision to extend the scheme has been taken to provide long term support to house builders as they recover from the economic impact of the Covid-19 pandemic.
The Help to Buy initiative will be supported with £55 million of funding from the Scottish Government for 2021/22.
The SNP MSP said: “I’m pleased to learn that the Help to Buy scheme will be extended until March 2022. This scheme has helped so many people in North Ayrshire and Scotland, particularly young people, in getting onto the property ladder.
“Those who have been unable to save for a deposit for a new build due to financial pressures caused by the Covid-19 pandemic will benefit from the extension of this scheme.
“This will also provide a long term financial benefit to the housebuilding sector of the Scotland’s economy as we look to recover from the disruption caused by the current public health crisis.”
Housing Minister Kevin Stewart said:
“A strong and growing house-building industry is vital to Scotland’s future economic prosperity – and particularly as we plan our strategic economic recovery from COVID-19. This extension will provide us with the opportunity to reassess future priorities for the market, taking account of economic conditions following the pandemic, as well as providing a helping hand to those seeking to buy their own home.”
The Help to Buy (Scotland) scheme focuses on more affordable housing with a maximum purchase price of £200,000 and with £15 million ring-fenced support for the purchase of homes sold by smaller developers, from a total budget of £55 million. It bridges the gap between lower loan-to-value (LTV) mortgages now obtainable for new builds and the smaller deposits many households now have available to buy a new home.
Over the next two years the funding commitment for Help to Buy (Scotland) is:
- 2020-21 £50 million
- 2021-22 £55 million
79% of those supported by the scheme in 2018/19 were young people aged 35 and under.
An independent evaluation of the Scottish Government shared equity schemes, including Help to Buy has been published. This work was undertaken prior to the COVID-19 crisis.