Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Scottish Government Launches Interest-Free £10,000 Deposit Scheme for First-Time Buyers

The Scottish Government has opened the First Homes Fund, offering up to 2,000 first-time buyers a £10,000 interest-free deposit contribution. The scheme is available for homes priced up to £300,000 and is part of a shared-equity initiative to help first-time buyers onto the property ladder.

The First Homes Fund officially opened on 24th June and is targeted at individuals who have not previously owned a property in Scotland or anywhere else in the world. The scheme is designed to support first-time buyers by providing a deposit contribution without monthly payments or interest charges to the Scottish Government.

Participating lenders in the scheme include Leeds Building Society, Scottish Building Society, Glasgow Credit Union, Nat West, and Lloyds Banking Group. The Scottish Government will hold an equity share in the property as a security, but the homeowner will have full title to the property. The government’s equity share is typically repaid when the home is sold or when a payment event occurs, as outlined in the shared equity agreement.

The First Homes Fund is part of a broader programme supported by a £4.9 billion investment in affordable housing over the next four years. The scheme aims to make it easier for first-time buyers to access home ownership and is expected to have an impact on the wider housing sector in Scotland.

For letting agents and inventory clerks, the launch of this scheme may influence demand in the first-time buyer market and could affect rental sector dynamics as more individuals are supported in purchasing their first homes.