Improvements to shared equity housing scheme

Shared Equity Housing Scheme
The threshold of the Open Market Shared Equity Scheme in Scotland – which allows people to buy a home without having to fund its entire cost – has been raised by 9 per cent to reflect rising house prices.

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Buyers pay for the biggest share which is usually between 60 and 90 per cent of the property’s cost. The Scottish Government will hold the remaining share under a shared equity agreement.

It’s open to first-time buyers and:

  • people aged 60 and over
  • social renters (people who rent from the council or a housing association)
  • disabled people
  • members of the armed forces
  • veterans who have left the armed forces within the past two years
  • widows, widowers and other partners of service personnel for up to two years after their partner has lost their life while serving

Applicants can also make offers on properties above the formal valuation amount, where they have funds available. People who have an application in progress do not need to reapply to benefit from the changes.

Thresholds are set at the lowest 25 per cent of house prices in urban areas and the lowest 50 per cent of house prices in rural areas. A further review of the threshold will take place in December 2022 to determine any further changes needed for 2023.

"These are positive changes which will put applicants on a more level playing field with other buyers when purchasing an affordable home. We are well aware of the rise in house prices, and we have listened to people’s feedback. That is why we are acting to make the process fairer and to offer a helping hand in challenging times. Our evidence-based approach ensures that the scheme continues to be targeted at priority groups and to ensure that, across Scotland, all areas can benefit from a viable scheme with a reasonable number of purchases."
Shona Robinson
Shona Robison
Housing Secretary | Scottish Government

Credit: PropertyMark

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