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Help to Buy extended for two years in Scotland

The Scottish government’s Help to Buy scheme is to be extended for another two years from April 2019.

From April 2019 a further £100 million will be invested over two years, helping up to 4,000 households to purchase a new home. Since 2013, the scheme has supported more than 12,000 Scottish households into a new home.

Help to Buy (Scotland) is open to first time buyers and existing homeowners, and provides up to 15% of the purchase price of a new build home. The maximum purchase price is £200,000.

Scottish housing minister Kevin Stewart announced the extension to the scheme during a visit to Calderwood Village, Coatbridge.

Stewart said: “Since we introduced Help to Buy, the scheme has not only helped thousands of buyers into new homes – it has supported around 9,000 jobs. A third of the annual £50 million budget – £18 million – will be reserved for sales from SME builders, who were particularly affected by the drop in development finance after the financial crisis.

“We know house builders still see Scotland as a place to continue to develop and invest, with the latest figures showing new house completions grew by 5% over the last year. Housing is about more than bricks and mortar – we want to provide safe, warm homes, help create a fairer Scotland, and preserve a diverse and more resilient construction sector.”

Douglas Cochrane, chair of the UK Finance Scotland mortgage committee, said: “The extension of Help to Buy in Scotland is good news for buyers and home movers with low deposits, who will continue to receive vital support when buying a new-build home. Last year the number of first-time buyers in Scotland reached its highest level in a decade, boosted by vital schemes like Help to Buy.

“Today’s announcement will bring welcome stability to the Scottish mortgage market and help more people get a foot on the housing ladder in the years ahead.”

Source: Mortgage Finance Gazette