17th July 2014
House builders are in an uproar with the Scottish government after news surfaced that its Help-to-Buy money pot has run dry for the current financial year.
The government initiative was launched in order to help would be homeowners get their leg on the property ladder, as the scheme allows potential home-buyers to purchase a new-build or existing home priced up to £600,000 with as little as a 5% deposit.
According to a report on specialist website Money Marketing, the Scottish government has confirmed that it will go ahead with all applications already received but is unable to any more on until April next year.
However, it says it is looking at alternative routes in a bid to satisfy demand. In the report, a spokesperson for the Scottish government said: “All applications that have so far been approved will proceed.
“Demand for the scheme continues to be extremely high and ministers have already allocated an additional £50m to the scheme this year. We are also actively considering how further demand can be supported this financial year.”
Homes for Scotland chief executive Philip Hogg told Money Marketing he was “frustrated” by the news.
He added: “We are frustrated but not surprised by this news.
“We have consistently called for additional budget to ensure the scheme can meet the demand which clearly exists. This is demonstrated by the fact that it has already generated some 3,500 sales and reservations.”
Hogg added that Homes for Scotland will continue to push the Scottish government to follow Westminster in extending the scheme until 2020.
To date, a reported 2,000 new-build purchases have sold the scheme, with another 2,000 anticipated to be finalised before the end of the 2014/15 financial year.