The Open Market Shared Equity Scheme is a new program being rolled out in Scotland and is designed to help first-time homebuyers get into the market. The £90 million two-year program assists buyers with a certain percentage of the purchase price, which is invested under a security in the home. A smaller version of the shared-equity program has worked in the past to help thousands get into their first homes and experts say the results have been positive. For more on this continue reading the following article from Property Wire.
People across Scotland are to be helped on to the property ladder with a £62 million funding boost announced by Housing Minister Margaret Burgess.
The funding for the Open Market Shared Equity Scheme will be available over the next two years for eligible buyers on low to moderate incomes who are looking to buy their first home. This increases the overall investment in the scheme over the next two years to £90 million.
Eligible buyers will be able to buy a home by paying a majority share in it, while the Scottish government provides the remaining amount which is secured under a security on the home.
Speaking during a visit to a home in Cruden Estates’ Golspie Street development in Govan where the homeowner benefited from support from the Open Market Shared Equity Scheme, Burgess said that people who should rightly be able to afford a mortgage are still facing real challenges buying a home.
‘This overall investment of £90 million over two years demonstrates our commitment to do all we can to help credit worthy buyers to buy their first home. Over the past four years this scheme has helped over 2,700 people on low to moderate incomes buy a home. And it has reduced pressure on the social rented sector through freeing up properties and reducing demand expressed through housing waiting lists,’ she explained.
‘Last week we announced the end of Right to Buy, a decision that will help to protect social housing for future generations to enjoy. This government remains absolutely committed to helping people buy a home and our shared equity schemes are helping and will continue to help thousands of people get a foot on the property ladder,’ she added.
Link Group chief executive Craig Sanderson said that having been involved in the administration of the OMSE scheme since its inception, the programme is having a positive result for many who could otherwise have not been able to secure affordable home ownership.
John Gallacher, managing director of Cruden Estates, said that schemes like OMSE are beneficial for buyers and house builders alike. ‘At Cruden Homes we’ve made a point of advising potential buyers who are concerned about affording a mortgage that there are options open to them through such Scottish Government schemes. This has allowed us to continue to build and sell homes for the First Time Buyer market as well as established buyers,’ he added.
This article was republished with permission from Property Wire.