Help to Buy Scotland is a scheme developed to help homebuyers purchase with a deposit as low as 5%. Many individuals find the demand for higher deposits to be a barrier to homeownership and as such thousands in Scotland and the rest of the UK have jumped at the chance to purchase a home using the Help to Buy scheme.
However, the popularity of Help to Buy has meant that funds in Scotland are running short. At the start of the financial year there was funding available to support 2000 Help to Buy purchases, by the end of June provision for only 600 remained. All of the funds for Scotland’s central belt, the Borders, Argyll, and Bute have now been allocated leaving just a few opportunities in Inverness, Orkney and Aberdeen.
Scott Kennedy from the mortgage firm Lifetime Planning says the news that the funding will no longer be available for most of the country has come out of the blue.
“These people potentially have been planning this for a very long time and, within 10 days, the scheme has literally closed, so there will be a number of people who will be upset by this there’s no question,” he told BBC Scotland.
The Scottish government said demand for the scheme had been “extremely high” and minister had already allocated an additional £50m to the scheme this year, taking total funding to £275m.
A total of £140m was set aside for this financial year and, from April 2015, a smaller amount of money – just £100m – is due to be available.
Judging by the demand for Help to Buy this year, it is likely that the provision set aside for 2015 will also quickly run out.