EDINBURGH - The housing market in the UK may be floored, but the Scottish Communities minister Malcolm Chisholm is by no means beaten as he has announced a new scheme to allow first time buyers and families with low incomes to actually realize their dream of owning a home.
Chisholm unveiled this scheme called as Homestake at Inverness. The main aim of the new scheme is to help out first time buyers and low-income families. Prospective buyers will be able to buy homes by paying up to 60 to 80 percent of the total costs. The remainder would be held by housing associations with the owners having the option to increase their stake at a later date.
It is estimated that around 20 Homestake projects are in the works for the current year and would help 1,000 buyers annually. At present, almost 500 buyers have expressed an interest in the scheme. Individuals will need to have an income in the range of £18,000-£23,000 to be eligible for the scheme. The scheme is being run by Communities Scotland, the Executive's regeneration and housing agency.
"We think that helping aspiring homeowners and giving them new opportunities is crucial. The Homestake scheme is based on new build, in other words it's increasing the supply of properties," Chisholm said when asked about the project. He added that the Scottish Executive was aware of the financial difficulties faced by a large number of prospective buyers and was committed to the policy of making housing affordable to one and all. Towards this end, 21,500 homes would be built over the next three years, he said. "Low-cost home ownership won't just help the individuals who are going to benefit from the Homestake scheme, it will also relieve pressure on the social rented sector," Chisholm said.
He asked local authorities to make sure that adequate land was available for the scheme. "This is a uniquely Scottish solution for the distinct and different needs of communities across Scotland," he concluded. Welcoming the introduction of this scheme, Kennedy Foster, of the council of Mortgage Lenders (CML) in Scotland said that it was a positive step.
Posted
on : Thu, 22 Sep 2005 09:25 GMT | Mortgages News
By : Pippa Fielding
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