The Scottish Government unveiled a £70m fund yesterday which will be available to families on what the Government deem “low and moderate incomes” in Scotland to enable them to buy their first homes.
The funds will be available through what is known as the Open Market Shared Equity Scheme (OMSE) which provides buyers with interest free loans. These loans are available to people with mortgage and savings that would cover between 60 – 90% of the value of a new build home. The balance is provided by a loan from the Scottish Government and, essentially, the Government takes a percentage equity stake in the property which is repaid upon the sale of the property.
This is part of a funding allocation the Government set aside for affordable housing generally and is a scheme which has proven successful in the past.
For those of you involved in construction or building unfortunately little additional information has become available as to what funding will be available to ensure the construction and development of more affordable properties for rent and sale. However, it is anticipated that the OMSE scheme will see an upturn in potential first time buyers.
If you are a developer and want more information on the Government’s policies on affordable properties, please do not hesitate to contact me.
If you are interested in purchasing a property under the OMSE Scheme, please contact our residential team