Scottish Government Launches First Homes Fund for First-Time Buyers

The Scottish government announced that first-time buyers will be able to apply for interest-free loans of up to £10,000 starting next month. The loans are available for homes valued at £300,000 or less. The government will hold an equity share in each property, repaid when the home is sold.

Housing Secretary Shirley Anne Sommerville told parliament the fund will open for applications by the end of June. She said the program is intended to help 50,000 households over five years. Sommerville stated the loans target people who are "stuck in a rent trap" and cannot save for a deposit.

The SNP had pledged a £100 million fund that extends a pilot scheme active from 2019 to 2022. That pilot supported deposits for more than 10,000 homes. A 2020 Scottish government survey found most participants bought homes sooner and larger than they otherwise could have.

Griffin said the scheme could raise house prices. Reform MSP Thomas Kerr called it a "gimmick" that would not address the housing crisis. Green MSP Ariane Burgess cited evidence from earlier programs showing reduced affordability. Tory MSP Meghan Gallacher noted that nearly seven in 10 prior applicants had above-average household incomes.

Sommerville said the government had set a maximum price cap to focus aid on those who need it most. Housing completions last year reached their lowest annual total since 2017-18, aside from the Covid-restricted year of 2020-21.