HomeStake, similar to the HomeBuy schemes in England and Wales, gives help to borrowers on low incomes who wish to buy a property. Following a review of its growth, Communities Scotland has extended its pilot scheme to Aberdeen, Aberdeenshire, Moray, Perth and Kinross in addition to Stirling and Highland local authority areas.
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The Council of Mortgage Lenders (CML) indicated that HomeStake would be available primarily in new housing developments with registered social landlord (RSL) properties taking priority. Targeted properties would include projects which granted fund RSLs to build new property for sale on a shared equity basis and projects which granted fund RSLs to purchase properties at a discount from property developers for future shared equity purchases.
Projects which grant funds to develop new properties for sales on a shared equity basis to existing owner occupiers whose homes are scheduled for demolition and who want to be take part in an agreed redevelopment plan will also be considered for the scheme.
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Announcing the extension of the HomeStake scheme, Communities Minister Rhona Brankin, admitted that increasing home ownership was a key priority for the Scottish Executive over the next 12 months.
She 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.
“By making more money available for the Homestake initiative 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.”
