The Scottish government has launched a second Help to Buy scheme to aid buyers in purchasing homes from smaller housebuilders.
The £30m Help to Buy (Scotland) Small Developers scheme works in the same way as the Help to Buy (Scotland) equity loan initiative but applies exclusively to homes built by small builders registered with the scheme.
The £30m is new funding and will not be taken from the main Help to Buy scheme.
Buyers may purchase a home with an 80 to 90 per cent mortgage while the Scottish government takes an equity stake of between 10 and 20 per cent.
Around 170 small builders have already registered with the scheme, which launched last week.
Scottish first minister Nicola Sturgeon says: “The Scottish government is supporting the housebuilding industry and Help to Buy (Scotland) is one of the creative ways we are stimulating new development, opening the market to thousands of housebuyers.
“This new support of £30m will be ringfenced to support purchases from smaller building companies that develop thousands of quality homes across the country. These are often in remote locations and keep jobs and skills in rural areas while having a positive knock-on impact on the wider economy.”
Leeds Building Society has signed up to lend through the scheme. General manager for business development Martin Richardson says: “We are one of only a handful of lenders to offer Help to Buy mortgages in Scotland and we welcome the announcement, which will support smaller housebuilders to better meet demand for new homes and enable more people to realise their property-owning aspirations.”
Around 4,100 homes have been purchased under the Scottish version of Help to Buy, which launched in September 2013.