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Thursday, 17 July 2014

The Scottish government's Help to Buy scheme has run out of money

The Scottish government's Help to Buy scheme has run out of money for this financial year, just three months after a new round started.

All the funds for the central area of Scotland have now been allocated - accounting for 80% of the funding. Buyers who were hoping for a Help to Buy deal there before next April will now have to find the extra money elsewhere or let their house deal fall through.

The government in April set aside enough money to fund 2,000 home deals but by the start of July there were just 600 still available.
Homes for Scotland Chief Executive Philip Hogg said:

“Having worked closely with the Scottish Government on monitoring of the Help to Buy (Scotland) scheme since its launch last September, we are frustrated but not surprised by this news. 

“Quickly aware of the high level of interest, we have consistently called for additional budget to ensure the scheme can meet the demand which clearly exists. This is demonstrated by the fact that it has already generated some 3500 sales and reservations.

“Without a doubt, the Help to Buy (Scotland) scheme has proved a huge boost, not only in terms of stimulating the building of much needed new homes but also in supporting jobs and wider economic recovery. 

“Whilst the scheme will remain in operation with £100m allocated for 2015/16 to support buyers across Scotland, any interruption now will obviously be hugely frustrating for both buyers and builders alike.  With Westminster having pledged support for the English scheme until 2020, we will continue to work closely with the Scottish Government on the development of a longer-term strategy here.”