On 1st February, the Scottish government revealed that they will no longer be accepting applications for the country’s Help to Buy scheme after Friday 5th February. This has left prospective buyers with a week to apply. Before this announcement, the Scottish version of the scheme was set to run until March 2022.
The announcement came after the Scottish Budget, which revealed a 16% spending cut for Scotland’s Affordable Housing Supply Programme. Scottish housing minister, Kevin Stewart, has said the cuts are a direct result of the 66% reduction (equalling £412 million) in the Scottish government’s budget for financial transactions, which is set by the UK government.
In his statement, Stewart explained that the reduction in budget has meant Scottish ministers have “had to make difficult choices in how we best use these limited resources to support our shared equity schemes.”
Although the main Help to Buy scheme will close to new applications, the Help to Buy smaller developers scheme will continue with a budget of £14 million. Additionally, the Scottish First Home Fund will also continue in 2021/22 with a budget of £60m. This offers first-time buyers up to £25,000 for purchases of both new build and existing properties.
