Now SNP delivers a £110m blow to f irst-time buyers
FIRST-TIME buyers have been hit with a £110million cut to a fund aimed at helping them onto the housing ladder.
The Scottish Government is also slashing the value of homes that qualify.
It had previously committed £305million over three years to Help to Buy, where it purchases up to 15 per cent of a property.
Even then, the fund ran out within weeks each year, leaving many disappointed.
Yesterday, the Government announced the fund will be cut to £195million over the next three years. There will be £80million available in 2016-17, £65million in 2017-18, and £50million in 2018-19.
The value of the homes that qualify will also fall, from £230,000 next year, to £200,000 in 2017-18 and £175,000 in 2018-19.
According to estate agent Your Move, the average house price is £240,751 in Edinburgh, £216,618 in Aberdeen, £188,048 in Perth and £141,868 in Glasgow.
Scottish Labour communities spokesman Ken Macintosh said: ‘Today’s news that the SNP Government plans to reduce support for first-time buyers through cuts to the Help to Buy scheme will make it so much harder for young people to get on to the housing ladder.’
Scottish Tory housing spokesman Alex Johnstone said: ‘ It looks like the SNP’s contempt for home ownership continues.
‘The fact is that Help to Buy can, and should, play a vital role in providing the kind of balanced housing stock that delivers sustainable communities.
‘ We know home ownership remains the tenure of choice for the majority of people, but the SNP is simply giving aspiring home owners false hope with the crumbs off the table.’
Industry body Homes for Scotland urged the Government to commit to more housebuilding, after a rapid increase in England led to the creation of 100,000 jobs last year. But it fears yesterday’s announcement falls short.
Incoming chief executive Nicola Barclay said: ‘ Whilst £195million of funding has
‘A significant reduction’
been announced for the next three years, the fact is this represents a significant reduction.
‘The changes in criteria, with reducing price ceilings, means some builders will be excluded from the programme altogether, which may restrict supply in some parts of the country.’
The Government has also committed £80million to help homebuyers in 2016- 17 through its Open Market Shared Equity Scheme.
Social Justice Secretary Alex Neil said: ‘I am delighted we can help 5,000 home buyers into affordable home ownership i n the coming financial year, underpinned by £ 160million, which is £35million more than originally planned for this year.
‘Importantly, this new funding is specifically targeted to support thousands of lowincome individuals and families across Scotland get on or up the housing ladder.’