First-time buyer scheme expanded

Ministers said the scheme would help more than 1,000 people this year

A Scottish Government pilot scheme to help first-time buyers get on the property ladder is being rolled out to the whole of Scotland.

The £60m shared equity initiative, which has been increased from £24m, could help 1,500 people this year.

Under the scheme, buyers pay 60% to 80% of the price of the property, with the government funding the remainder through an interest-free equity stake.

Ministers said the move would also help those struggling to sell their homes.

Alex Neil, the housing minister, said the scheme was an important part of the government's economic recovery plan.

'Much-needed boost'

"This scheme will help first time buyers across Scotland to access the housing market," he said.

"It will also help people who are struggling to sell their homes in the current climate by stimulating sales of properties in local housing markets. It will provide a small, but much-needed boost to house sales in a number of areas across Scotland."

The expansion was backed by the Council of Mortgage Lenders Scotland, house building body Homes for Scotland and the Royal Bank of Scotland.

Under the scheme, which initially covered 10 council areas in 2008-09, the buyer does not pay any charges on the equity stake, but would pay the Scottish Government a proportion of the sale price at the time of sale, or earlier.

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