The Scottish Government's revamped policy to help homeowners facing repossession during the recession has been branded a "postcode lottery with no winners", excluding the majority of the middle classes who are struggling to cope with mounting debts.
The criteria for the flagship Mortgage to Rent scheme was changed three months ago in an attempt to provide help to people who are in danger of having their homes repossessed amid rising unemployment.
But the initiative has faced criticism for failing to help white-collar, middle-class earners have been most damaged by the downturn in the economy - with many of them unable to cover their mortgage costs because of the scheme's £100,000 ceiling on what a property is worth.
A snapshot by 25 Citizens Advice Bureaux (CAB) and Money Advice centres across the country revealed that over four out of five people believed the changed scheme now made it more difficult for homeowners to access help.
It is feared homeowners in middle-class communities affected by the recession, such as East Renfrewshire and East Dunbartonshire, are missing out on the initiative's benefits because of huge disparities of up to £100,000 between a property's value and the average price of a similar home in neighbouring Glasgow, for example.
In East Renfrewshire, the fund will only bail out those whose three bedroom houses were valued at £105,000, despite the average price for this type of house being £206,000.
CAB and Money Advice found that more than half of those who took part said the new maximum property prices were unrealistic and acted as an obstacle to preventing those facing repossession getting help under the scheme.
There were very few reported applications to the government's Shared Equity Scheme, with many respondents claiming it was too cumbersome and difficult to qualify for. Eligibility for the scheme was changed in March when the government widened the area from which it would get an average house price from the immediate vicinity to local authority-wide.
Mike Dailly, a housing campaigner and principal solicitor at Govan Law Centre in Glasgow, has been pushing the government on the issue.
He said: "The Homeowners' Support Fund now amounts to a postcode lottery with no winners. Our survey shows the government has created so many obstacles that most people applying for help are now excluded."
Last night opposition parties rounded on the government, urging it to seize on the findings.
Labour's health spokeswoman, Cathy Jamieson, said the report provided evidence that the Mortgage to Rent scheme had been "vandalised by the SNP".
She added: "Exactly how many people will be helped by a scheme that nearly no-one can actually be accepted for? The sad fact is that Nicola Sturgeon's complacency and incompetence have left Scots more exposed to repossession than homeowners in any other part of the UK."
Liberal Democrat housing spokesperson Ross Finnie said: "It is disappointing that proposals intended to help the situation have in fact proved to be more of a hindrance."
A Scottish Government spokesman said: "Since the Mortgage to Rent scheme began in 2003, more than 850 households have received assistance. And since January, nearly 120 Scottish families have been helped by the scheme, which compares to only two reported in England."
