Early success of First Home Fund in relation to first-time buyers
The First Home Fund available in Scotland, which offers first-time buyers loans of up £25,000 for their deposit, launched in December 2019 to pilot a new approach to supporting first-time buyers, is likely to be re-opened for further applications during early 2021. The scheme is open to all first-time buyers and can be used for new build and existing properties. The Scottish Government invested a further £50 million pounds in July 2020 in response to reduced availability of higher loan-to-value mortgages caused by the COVID-19 pandemic. The new scheme has been popular since the housing market re-opened in June 2020 and is expected to support more than 8,000 households into home ownership by the end of the financial year. The pilot scheme undertaken this year will now be evaluated, with the results expected to be made available in January 2021. The Housing Minister has indicated that the fund will re-open in the New Year for home purchases completing in 2021-22.