Scots ministers blame budget cuts after scrapping Help To Buy scheme

Homebuyers have been dealt a blow by a Scottish Government decision to close a flagship scheme aimed at helping people get on the housing ladder.

Applications to the main Help To Buy scheme for 2021/22 will be closed this week after cuts to funding from the UK Government left Scottish ministers facing “difficult choices”.

The Help To Buy Affordable New Build scheme offered interest-free equity loans of up to 15% of the purchase price of a newly-built home worth no more than £200,000. Holyrood yesterday blamed Westminster’s decision to cut the Scottish Government financial transactions allocation by two-thirds.

Pauline Mcneill, Scottish Labour’s housing spokesperson, said young people could now be excluded from owning their own homes. She said: “It takes so long to save up a deposit and for most people trying to make ends meet they don’t have excess money. Having a scheme like that was critical.” Housing Minister Kevin Stewart said current approved applications for the main Help To Buy scheme would be honoured if delayed because of Covid, as long as there was no change to the applicant’s financial position. He added: “There has been a 66% cut to the Scottish

Government Financial Transactions – allocations from the UK Government – a reduction of £412m. This means we have had to make difficult choices.”

He added that the Help To Buy smaller developers scheme would be retained, but added: “We are, unfortunately, unable to continue with the main Help To Buy scheme, and it will close to 2021-22 applications on Friday, February 5.”