News Article

A Tayside property developer has welcomed a new Scottish Government Scheme which will provide first-time buyers with up to £25,000 towards the purchase of a home.

The First Home Fund, a £150 million national pilot scheme to help first time buyers purchase their first property, was launched in December 2019 and will operate until 31 March 2021 or until funding runs out. 

It will run alongside other existing shared equity schemes and aims to help first-time buyers purchase a property that meets their needs and is located in the area where they want to live.

Karen Nicoll, Managing Director of DJ Laing Homes said: “DJ Laing Homes has enjoyed strong sales performance over the past few months in the Dundee market, with many buyers taking advantage of the current Help to Buy Scheme. “With the recent opening of the V&A museum and further plans for investment and the regeneration of the Waterfront, our return to the area has been extremely positive. Our clients have been taking advantage of a variety of finance options including Help to Buy funding which is available for new properties below £200,000. The new ‘First Home Fund’ will allow even more first time buyers to get on the property ladder and continue to boost the Tayside property market.”

It will run alongside other existing shared equity schemes and aims to help first-time buyers purchase a property that meets their needs and is located in the area where they want to live.

Key features of the scheme include:

  • The scheme is open to first-time buyers, who are those who have not previously held title to a property. Where joint applicants apply, only one must be first time buyer, but financial assistance will be awarded per property purchase. 
  • Beyond the requirement that a buyer is a first-time buyer, there is no means testing, no price cap on properties nor further targeting of the scheme.
  • The scheme will support the purchase of new builds and existing homes.
  • An offer will have been accepted on a property before an application may be made to the scheme. 
  • Buyers will be required to take out a mortgage, and there will be a minimum mortgage requirement of 25% of the property value, as is the case for Help to Buy.
  • Buyers will also have to fund a minimum of 5% of the value of their new house from their own funds as a deposit.
  • The Scottish Government contribution will be secured on the equity of the home; is repayable in full at any time; and must be repaid if the home is sold. No monthly payments will apply.  
  • The new scheme is to run in conjunction with the current shared equity schemes, but applicants will not be able to benefit from another Scottish Government shared equity scheme to support the same home purchase.
  • People will be able to combine contributions from the UK Government’s Help to Buy ISA or the Lifetime ISA (which do not have to be repaid to the UKG) with support from this scheme, as is the case for existing shared equity schemes.
  • All buyers must reside in the house as their main residence. There is a corresponding prohibition on letting, lodgers, sharing occupation etc.
  • Scottish Ministers equity stake will be no more than 49%.

For further information, please contact the DJ Laing Homes team on 0845 257 2290 or email homes@djlaing.co.uk