The Scottish government's new First Homes Fund has been launched, aiming to help first-time buyers get a foothold in the property market. Up to £10,000 can be contributed towards deposits for homes worth up to £300,000 across Scotland, with 50,000 households set to benefit from the £500 million scheme.
Cabinet Secretary for Social Justice and Housing, Shirley-Anne Somerville, stressed the importance of addressing the challenges faced by first-time buyers: "We've heard countless stories about how hard it is to get on the property ladder. This fund responds directly to those concerns, providing a much-needed boost to aspiring homeowners." She also highlighted the government's record £4.9 billion investment in affordable housing over four years.
Homes for Scotland (HFS) had long advocated for a first-time buyer fund, and its Chief Executive, Jane Wood, welcomed the move: "This initiative will not only alleviate existing housing need but also stimulate socio-economic growth across Scotland." Supporting first-time buyers could unlock investment confidence in areas where development is challenging.
Major lenders have already signed up to participate, including Leeds Building Society, Scottish Building Society, and Lloyds Banking Group. However, critics argue that the fund does not address fundamental issues like housing supply shortages and perceived red tape.
Scottish Conservative MSP Meghan Gallacher questioned whether direct financial assistance is enough: "This loan might help some, but it doesn't tackle problems like a shortage of available homes and a tax regime that makes it harder for young people to buy." The Scottish Conservatives propose scrapping LBTT on primary residences and focusing on delivering 80,000 affordable homes.