Homestake scheme to be extended
14 Mar 07
Six more areas to follow Edinburgh pilot aimed at housebuying on a low income
A pilot scheme to help first-time buyers and others on low incomes to buy their own homes on the open market is to be extended to a further six local authority areas.
Communities Minister Rhona Brankin said that the open market version of the shared-equity Homestake scheme would be tested in six more areas of high property demand, following its success in Edinburgh and Lothian, where it has helped more than 530 people buy their homes over the past 18 months.
Later this year, open market Homestake, which is managed by Communities Scotland, will also be made available to people on low incomes in Aberdeen, Aberdeenshire, Moray, Perth and Kinross, Stirling and Highland local authority areas.
The open market Homestake scheme is different to the mainstream new build Homestake programme, which is currently available across Scotland.
The latter scheme involves housing associations part-funding a share in a property and holding a part "equity stake" with the homeowner. Under the open market scheme people can buy an existing property on the open market with the help of a housing association.
The association funds a share in the property and holds a part equity stake along with the homeowner. The owner's share will be between 60% and 80% at the start. Most Homestake owners can later increase their stake up to 100%.
Ms Brankin said: "The Scottish Executive is committed to increasing the supply of affordable housing for rent and low-cost home ownership across Scotland.
"Homestake is the most flexible scheme of its kind in the UK. Over the past year it has helped provide over 1,000 homes on a shared equity basis."