Scottish Help to Buy runs out of money

BBC Scotland reported that the budget for the central area of Scotland has now been allocated meaning anyone hoping to use Help to Buy before April 2015 will be unable to do so.

In April, the government set aside enough money to fund 2,000 home deals. But the start of July saw just 600 deals available.

Scott Kennedy from the mortgage firm Lifetime Planning, told BBC Scotland: “These people potentially have been planning this for a very long time and, within 10 days, the scheme has literally closed, so there will be a number of people who will be upset by this there's no question.”

A spokesperson for the Scottish government added: “More than 2,000 homes have been purchased through Help to Buy Scotland to date with an additional 2000 likely to be completed by the end of the financial year. All applications that have so far been approved will proceed.

“We are also actively considering how further demand can be supported in this financial year.

“In the meantime, if people who have not yet had an application approved are considering buying a house through the scheme, they should in the first instance contact the agents managing the scheme to check availability.”

A sum of £140m was allocated for this financial year and from April 2015 just £100m is due to be available.

Industry body Homes for Scotland responded: “This news is extremely disappointing as it follows a recent meeting with a small group of the Homes For Scotland board and Deputy First Minister Nicola Sturgeon to voice our concerns regarding the budget situation and the need for a longer-term scheme.”