Shared equity scheme details out
27 Aug 08
New supply shared equity intended to help people on low incomes get on housing ladder
The Scottish Government has published details of its "new supply shared equity" scheme, one of the measures by which it hopes to help those on low incomes become property owners.
Under the scheme, administered by the government along with Edinburgh and Glasgow City Councils, registered social landlords such as housing associations will buy or build houses specifically for sale on a shared equity basis. Intending purchasers will put up a proportion of the price, normally between 60 and 80% of the market value set by the district valuer, with the RSL becoming owner of the remaining stake.
The householder will pay the transaction costs and be responsible for upkeep of the property. After two years they will normally have the option to increase their stake to 100%. In the event of a sale they will receive the proportion of the price corresponding to their current stake.
The scheme is separate from the open market shared equity pilot scheme currently operating in a nunmber of areas. Details can be found in the booklet and in the guidance for housing agencies now on the Scottish Government website.