For many first-time buyers in Scotland, the closing of the First Home Fund may come as a disappointment. But don’t worry—there are still options to help make your dream of homeownership a reality. The Scottish Government has redirected funding into the Low-cost Initiative for First Time Buyers (LIFT), which includes valuable alternatives like the New Supply Shared Equity (NSSE) scheme. In this post, we will compare the two initiatives and provide actionable advice on how to navigate these options.
What Was the First Home Fund?
The First Home Fund served as a shared equity scheme that helped first-time buyers in Scotland. It offered up to £25,000 towards the purchase of a property, aiming to make it easier for buyers to get on the property ladder. However, the scheme has now permanently closed and will not reopen.
How Does the Low-cost Initiative for First Time Buyers (LIFT) Help?
The LIFT initiative has replaced the First Home Fund and provides support for first-time buyers on low to moderate incomes. The initiative consists of two main schemes:
Open Market Shared Equity (OMSE) Scheme
The Open Market Shared Equity (OMSE) scheme aimed to help first-time buyers purchase a property on the open market. Unfortunately, the Scottish Government has paused new applications for OMSE for the 2024–2025 financial year. As a result, first-time buyers cannot apply for assistance under OMSE until the scheme reopens.
New Supply Shared Equity (NSSE) Scheme
The New Supply Shared Equity (NSSE) scheme remains active and provides financial support for those wishing to buy new-build properties from councils or housing associations. This scheme is ideal for buyers interested in new homes and helps to reduce the amount of mortgage required.
What Are the Key Differences Between the First Home Fund and LIFT?
Here’s a comparison of the two initiatives:
| Aspect | First Home Fund | LIFT (NSSE) |
|---|---|---|
| Purpose | Assist with up to £25,000 towards purchase. | Shared equity for new-build properties. |
| Application Status | Closed | Active for new-build properties only. |
| Target Audience | First-time buyers in Scotland. | First-time buyers with lower to moderate incomes. |
| Property Types | Open market properties. | New-build properties from councils or housing associations. |
| Eligibility | Available to first-time buyers. | Available to those purchasing new-build homes. |
What Can First-Time Buyers Do Now?
If you’re a first-time buyer in Scotland, you may feel uncertain about your next steps now that the First Home Fund is no longer available. Here are a few tips on navigating the new options:
- Explore the NSSE Scheme: If you’re interested in buying a new-build property from a council or housing association, the NSSE scheme might be your best option. This scheme is still open, and you can apply for assistance to reduce your mortgage.
- Stay Informed About OMSE: While OMSE is currently paused, it’s worth keeping an eye on future developments. Check the Scottish Government’s website regularly for updates on when applications might reopen.
- Look Into Other Funding Options: The Scottish Government offers various other funding initiatives that can help first-time buyers, including Help to Buy (Scotland). Be sure to explore all available options.
For more information about the LIFT initiative and its eligibility criteria, visit the Scottish Government’s Homeowners page.
Next Steps for First-Time Buyers
Now that you understand the available options, it’s time to take action. Whether you’re interested in the NSSE scheme or other funding initiatives, there are resources available to help you purchase your first home in Scotland. Start by reviewing the eligibility requirements and reaching out to a financial advisor or mortgage lender to determine your next steps.
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