Housing: East Scotland home developers offer help as Edinburgh first time buyers face difficulties

As Edinburgh faces a shortage in affordable housing and the government’s Help to Buy Scheme has been scrapped, an East Scotland developer has pointed to an alternative scheme and housing to support Edinburgh first time buyers.

Houses in Edinburgh remain the most expensive in Scotland, causing difficulties for first time buyers (Photo: Jane Barlow).

In 2020, Edinburgh was the least affordable area to stay in Scotland – with the average property price (£274,246) at 4.9 times average earnings – according to latest figures from the Bank of Scotland.

The main Help to Buy scheme – which gives first-time buyers a loan of up to 15% of the purchase price of a new build home – was closed to applications last week after the Scottish Government announced it was no longer financially able to support the initiative due to run until March 2022.

All these factors add up to create a difficult environment for First Time buyers, however, there is other help available for getting on the property ladder, according to Barratt Homes

The developers have pointed towards the First Home Fund – an alternative shared equity scheme offered by the Scottish Government that provides up to £25,000 to all first-time buyers towards the purchase of a home.

The scheme will re-open for applications on April 1 and run until 31 March 2022.

Unlike the Help to Buy Scheme, there is no cap on the property price, but buyers must ensure their ownership is sustainable and affordable for the long term.

Anne Ross, sales director for Barratt Homes East Scotland said: “We’re here to make the process of buying a dream home as easy as possible, and this includes sharing useful information about the funding options available.

"While the Help to Buy Scheme is discontinued, we’re here to remind people that the First Home Fund is available and that the journey to owning a home doesn’t have to stall.”

If the virus has shown us anything it’s that a comfortable home plays a big role in wellbeing.”

Barratt Homes is currently taking reservations for homes under the First Home Fund scheme at Mayburn Walk- a variety of three and four-bedroom homes in Loanhead, to the south of Edinburgh.

With quick access to the Edinburgh bypass, park and ride options and regular bus services, Barratt Homes said that Mayburn Walk offers the chance to own a house and private garden without having to compromise on location.

Over the next 10 years, Edinburgh City council plan to invest £2.5 billion to regenerate areas across the city with a pledge to build 20,000 affordable new homes by 2027.

Those looking to buying typically need a 5% deposit of the value of the property as a minimum, subject to lender requirements with a secured a minimum mortgage of 25% of the property purchase price.

You’ll need to have secured a minimum mortgage of 25% of the property purchase price. In addition to this, the equity stake from the Scottish Government must not be more than 49% of the property value.

In addition to this, the equity stake from the Scottish Government must not be more than 49% of the property value.

Barratt Homes has advised prospective property owners to speak to an independent financial advisor to help navigate the market and ensure you are getting the best mortgage deal.

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