Summary: The Scottish government has launched the First Homes Fund, offering first-time buyers a £10,000 deposit contribution for properties up to £300,000. While welcomed by industry leaders, critics argue the scheme does not tackle the underlying causes of Scotland’s housing crisis.

Scottish government launches support for first-time buyers

The Scottish government has officially launched its First Homes Fund to assist first-time buyers onto the property ladder.

Under the scheme, first-time buyers can receive a £10,000 contribution towards their deposit, applicable to any property valued up to £300,000.

The government estimates that more than 2,000 households could benefit from the scheme within the first 100 days of its introduction.

Making life easier for first-time buyers

Shirley-Anne Somerville, Cabinet Secretary for Social Justice and Housing, said: “We know how hard it is to get that first foot on the property ladder and the opening of this fund is a direct response to stories I have heard from so many people who are keen to buy their first home.”

She added: “The First Homes Fund is part of a broader programme of action, supported by a record £4.9 billion investment in affordable housing over the next four years.”

“We promised to act to make life easier for many and fairer for all and, through the First Homes Fund, we are delivering on that promise.”

The government expects that around 50,000 households will benefit from the £500 million scheme over the course of this Parliament.

Industry response to the scheme

Jane Wood, chief executive of Homes for Scotland (HFS), welcomed the fund, saying: “Reintroducing the First Homes Fund was a key HFS ask ahead of the election, so we welcome this important step from the Scottish government.”

Wood emphasised the importance of supporting first-time buyers, noting that 693,000 households in Scotland are affected by housing need. She added that the scheme could stimulate wider socio-economic growth by boosting investment confidence, particularly in areas where development viability is marginal, and help increase housing delivery across all tenures where it is most needed.

Several lenders, including Leeds Building Society, Scottish Building Society and Lloyds Banking Group, have signed up to support the scheme.

Criticism over addressing the housing emergency

However, critics argue the scheme does not address the root causes of Scotland’s housing emergency. As previously reported by Property118, Scottish Conservative MSP Meghan Gallacher criticised the initiative, stating: “This statement is yet another example of the SNP trying to distract from nearly two decades of failure that has fuelled Scotland’s housing emergency.”

Gallacher added: “Giving some first-time buyers a government-backed loan does nothing to address the real problem. The SNP have choked off housing supply through reckless rent controls, excessive red tape, and anti-growth policies.”

She also criticised the Land and Buildings Transaction Tax (LBTT), saying it makes it harder for young people and families to get on the property ladder. The Scottish Conservatives propose scrapping LBTT on primary residences, cutting bureaucracy, and delivering 80,000 affordable homes during the next Parliament.

Practical support for TLA members

For landlords and agents navigating the evolving housing landscape, staying organised and compliant is essential. TLA’s new property management and compliance platform, ORBIT™, currently available in BETA testing, is designed to help manage property portfolios efficiently. ORBIT™ assists in organising properties, managing key documents, and recording compliance activity, which can be particularly useful as government schemes and housing policies develop.

TLA membership also provides access to practical guidance and compliance resources tailored to the private rented sector. Members can explore how to maintain accurate records, monitor legislative changes, and prepare for new obligations that may arise from initiatives like the First Homes Fund. Readers interested in enhancing their property management approach can explore TLA membership or learn more about ORBIT™ BETA access.