Government mortgage schemes in Scotland are hitting their targets by helping first-time buyers rather than fuelling price hotspots, the industry said this week.
First-time buyers took out 5900 new loans in Scotland in the first quarter of 2014, up 31% on a year ago, and 45% higher in value, according to the Council of Mortgage Lenders. The CML said government schemes had had the most impact outside London and on lower-value properties.
Paul Smee, CML director-general, said the initiatives “appear to be successfully reaching their target group of creditworthy borrowers who would otherwise be unable to buy until they had accumulated a more significant deposit”.
A UK survey by LSL, owner of estate agent Your Move, found first-time buyer transactions up 47% year on year, with one in nine citing the shared equity Help to Buy schemes as being pivotal to their success.
Philip Hogg, chief executive of industry body Homes for Scotland, said: “The hugely successful Help to Buy (Scotland) scheme, which has generated over 3000 reservations and sales since launch, has had a significant impact.”
He also called for the scheme to be extended to 2020, as it has been south of the Border. It is currently due to end in 2016 in Scotland.