- First time buyers encouraged to apply
Up to 2,000 households could be supported to make their step on
to the property ladder in the first 100 days of this Government
through the First Homes Fund.
The first phase of the shared-equity scheme, which offers
first-time buyers a £10,000 contribution towards a deposit, is
now open. Over the course of this Parliament it is expected
around 50,000 households will benefit from the £500 million
scheme.
The deposit contribution can made used to buy any property with a
value of up to £300,000.
Cabinet Secretary for Social Justice and Housing said:
We know how hard it is to get that first foot on the property
ladder and the opening of this fund is a direct response to
stories I have heard from so many people who are keen to buy
their first home.
The First Homes Fund is part of a broader programme of action,
supported by a record £4.9 billion investment in affordable
housing over the next four years.
We promised to act to make life easier for many and fairer for
all and, through the First Homes Fund, we are delivering on that
promise.
Homes for Scotland (HFS) Chief Executive Jane Wood said:
Reintroducing the First Home Fund was a key HFS ask ahead of the
election, so we welcome this important step from the Scottish
Government. Supporting First Time Buyers is essential, not only
in helping to address Scotland's existing housing need, with
693,000 households affected, but also in stimulating wider
socio-economic growth across the country by unlocking investment
confidence across the sector, particularly in areas where
development viability can be more marginal and help increasing
delivery of housing of all tenures where it is needed most.
HFS is ready to help support the efficient delivery of the Fund
so that all stakeholders, particularly those young people buying
their first home, are ready and prepared for the launch of the
scheme.
Background
The First Homes Fund is a shared-equity scheme and opens to
applications on 24 June 2026. A first-time buyer is anyone who
does not own, or has not previously owned, a property in Scotland
or anywhere else in the world.
The Scottish Government will have an equity share in the property
in the form of a security, although the homeowner will own and
have full title to the property. There are no monthly payments to
be made towards the Scottish Government and no interest will be
charged. The Scottish Government's percentage equity share would
normally be repaid when the home is sold or a payment event is
triggered in line with the terms of the shared equity agreement
buyers enter in to.
So far the following lenders have signed up to the scheme the
Scottish Government expects more will follow in the coming
months:
- Leeds Building Society
- Scottish Building Society
- Glasgow Credit Union
- Nat West
- Lloyds Banking Group
First Homes Fund -
Guidance - Leaflet for Lenders and IFAs - PDF - Published Version
- June 2026.pdf
