A SHARED equity scheme designed to help home-buyers shows the Scottish Government helps people in tough times, claims Deputy First Minister Nicola Sturgeon.
The Government will provide £120 million over the next two years to help both first-time buyers and existing homeowners looking to buy new-build property.
Ms Sturgeon said the scheme will help buyers while boosting the construction industry.
Ministers are working with key figures in the house-building sector to develop the initiative.
"People in Scotland who should rightly be able to afford a mortgage are still facing real challenges buying a home," Ms Sturgeon said at the Homes for Scotland annual conference.
"We are well aware of the challenges that people face and want to continue to do all we can to help," she added. "The £120m funding announced today will not only help people to buy their first home, it will also help second-steppers to be able to sell their home and to move to another property.
"But this is not only about helping people to buy houses. Our actions are also stimulating the economy. By supporting house-buying and construction, we are creating new work for the sector and supporting jobs.
"This demonstrates that in these tough financial times, the Scottish Government will step in, both to help households and crucial sectors of our economy."
Those who successfully apply to the scheme will buy the majority share of a new-build property, with the Government taking the rest.
When the property is sold on, the Government then receives a cash sum proportionate to its share.
Jim Preston, the new chairman of industry body Homes for Scotland, said a well-funded shared-equity scheme can be a "game changer". He said: "Home building is one of the most effective ways to stimulate the economy because of its strong employment and output-multiplier effects.
"With strong evidence to demonstrate the significant positive impact shared-equity schemes can make, a well-designed and funded initiative could be a game-changer in Scotland."
Paul Smee, director general of the Council of Mortgage Lenders, said: "We welcome the Scottish Government's efforts to stimulate the house-building sector and we look forward to working constructively with the Government to help deliver this scheme."
John Perkin, financial services director at Slater Hogg & Howison, said: "Anything that supports house sales and mortgages, especially for first-time buyers, is to be applauded. While the amounts are not significant, they do help as average prices in Scotland and average mortgages are generally lower than most of the UK."
Scottish LibDem housing spokesman Jim Hume said: "News of this extra investment is welcome , but serves to highlight the SNP's broken promise of delivering socially-rented homes."
Faisal Choudhry, associate director of residential research at Savills in Glasgow, also supported Government backing for the market, saying: "It gives people encouragement they can start to think about moving. It also unlocks the market. Second- steppers have been waiting a long time [to move]. Everyone benefits from this."
l WORK has begun on a multi-million pound development that will increase the number of affordable homes in Scotland over the next 18 months. The 81 homes are being built by Barratt East Scotland as part of a £10m investment by Home Scotland, at Kirkliston Village in Edinburgh.
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