This item was published during the term of a previous administration that ended in April 2007
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Homestake scheme to be expanded
13/03/2007
A pilot scheme to help first-time buyers and others to purchase their own homes on the open market is to be extended to a further six local authority areas thanks to £10 million of funding.
Communities Minister Rhona Brankin said that the open market version of the shared-equity Homestake scheme, which is managed by Communities Scotland, would be tested further in six areas of high property demand following its success in the Edinburgh and Lothians.
Later this year, open market Homestake will also be made available to people on low incomes in Aberdeen, Aberdeenshire, Moray, Perth and Kinross, Stirling and Highland local authority areas.
Addressing the Chartered Institute of Housing (CIH) conference in Aberdeen, Ms Brankin said:
"The Scottish Executive is committed to increasing the supply of affordable housing for rent and low-cost home ownership across Scotland. Our total investment this year is a record £584 million and will provide around 8,000 affordable homes.
"Homestake is an important part of our affordable housing programme. It has proved highly successful across Scotland and 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.
"The open market pilot has proved extremely successful in Edinburgh and the Lothians; it has attracted double the interest we initially expected and has so far helped over 530 people purchase their home.
"Already this year, we have invested £20 million in open market Homestake in Edinburgh and the Lothians. In 2007/08 we are increasing our investment in the open market scheme to £30 million to enable the extension of the pilot.
"By making more money available for Homestake and expanding the open market pilot to six new local authority areas, we are further increasing our support to people on low incomes who wish to buy a home of their own."
The open market Homestake scheme is different to the mainstream new build Homestake programme, which is currently available across Scotland.
The mainstream Scotland-wide new build 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 have the opportunity to purchase an existing property on the open market with the help of a housing association.
Homestake is the Executive's shared-equity scheme which is managed by Communities Scotland and aimed at people on low incomes who wish to be homeowners but cannot pay the full price for a house. Housing associations will part-fund a share in the property and hold a part 'equity stake' in the property with the homeowner. Typically the owner's share will be between 60 and 80 per cent at the start. Most Homestake owners will have the option later to increase their stake up to 100 per cent.
In addition to the nationally-operating new build Homestake scheme, a pilot open market scheme has been running in Edinburgh and the Lothians for around 18 months. It has been evaluated by researchers at Heriot-Watt University whose report will be published shortly on the Communities Scotland website.