Published on : Wed, 21 Sep 2005 09:36GMT
by : Richard Byers

In an attempt to help low-income groups purchase homes, Scotland’s communities minister has introduced a scheme wherein people struggling to own a new house will realise their dreams and be able to purchase a home for themselves.

Malcolm Chisholm, the communities’ minister, has launched a scheme called Homestake, especially designed for people with low incomes and first-time buyers. The Homestake scheme is a shared equity scheme in which buyers will have to pay around 60% to 80% of the market value of the property. They however, have the option to increase the stake to 100% later and do not have to shell out a rental amount in addition to the mortgage for the part of the land that is not theirs.

Over 500 people were already looking hopefully at the scheme, and Leachkin Hill reported eight Homestake properties under construction. Chisholm was quoted saying, “Renting a home is as valid a choice as home ownership, but we must respond to the aspirations of many to own a home of their own. This is a uniquely Scottish solution for the distinct and different needs of communities across Scotland.”

Another such venture as a part of this scheme is to be executed in Lothians and Edinburgh to assist buyers there who are suffering from hefty property prices in that region. Nevertheless, single buyers need to have an income less than £19,700 and bigger families cannot earn more than £25,100 to qualify for the Edinburgh scheme.

Meanwhile, Council of Mortgage Lenders’ Kennedy Foster hoped that the Homestake scheme would reach out to a number of potential first time buyers and fulfill their dreams of having a home of their own.