Buying a home - Scottish Government support

Author: Kate Berry

PDF Published: Tuesday 18 Sep 2018 (SB 18-58)

Expand
Overview
Report

Hide

Hide

Overview
Report
- Executive Summary
- Home ownership in Scotland - background
  - Impact of the global financial crisis on home ownership
  - The importance of first time buyers in the housing market
  - Barriers to home ownership
- Government initiatives to support home ownership - background
  - Current Scottish Government initiatives
  - Summary table of Scottish Government shared equity schemes
- Low-Cost Initiative for First Time Buyers
  - LIFT planning and management
  - Numbers of affordable home ownership completions
  - Geographical pattern of affordable home ownership investment
  - Who buys homes under the LIFT schemes?
- Help to Buy (Scotland) Affordable New Build Scheme & Small Developers Scheme - Background
  - Help to Buy Sales - statistics
  - How much Help to Buy equity funding has been repaid to the Scottish Government?
  - Geographical pattern of Help to Buy sales
  - Help to Buy sales by local authority area
  - Impact of Help to Buy on the housing market
  - Help to Buy sales as a proportion of new build sales
  - Which builders do Help to Buy purchasers buy from?
  - Who buys homes under the Help to Buy scheme?
- Comment on home ownership schemes
  - GB comment on impact of home ownership schemes
Sources

Image: The proportion of younger owner occupiers has fallen since 1999

Image: Figure 2: Private sector new build completions in Scotland 1999/00 to 2016/17

Image: Figure 3: Number of residential house sales in Scotland 2004/05 to 2017/18

Image: Mortgage cost-to-income ratios for first time buyers have fallen since 2007

Image: The average house price in Scotland is around £176k (May 2018).

Image: Number of first time buyers have increased in recent years

Image: The average first time buyer deposit is £18,900.

Image: This diagram shows how a shared equity stake would work on a property costing £170k.

Image: Diagram of the Scottish Government's More Homes Budget 2018/19

Image: A quarter of all completions funded through the Scottish Government Affordable Housing Supply Programme are for affordable home ownership

Image: Map 1: Help to Buy sales by local authority area

Image: Map 2: Help to buy sales as a proportion of total sales 2017/18

Scottish Governmnet. (n.d.) Housing Statistics for Scotland 2016: Key Trends Summary. Retrieved from https://beta.gov.scot/publications/housing-statistics-scotland-2016-key-trends-summary/documents/00505400.pdf [accessed 20 July 2018]

Scottish Government. (2017, September). Scottish Household Survey Scotland’s People Annual Report | 2016. Retrieved from http://www.gov.scot/Resource/0052/00525075.pdf [accessed 26 June 2018]

Scottish Governmnet. (2018, September). Scotland's People Annual Report: Results from the 2017 Scottish Household Survey: Tables and Charts. Retrieved from https://www.gov.scot/Resource/0054/00540023.xlsx [accessed 9 September 2018]

Marshall, L., Wishart, R., & Smith, N. (2017, October 4). First-time Buyers 2017 Understanding the hopes and concerns of aspiring homeowners, prepared for Yorkshire Building Society. Retrieved from http://natcen.ac.uk/media/1488130/first-time-buyers-2017.pdf [accessed 26 June 2018]

Palframan, M., De, P., & Fernandes, A. (2018, May). First -time Buyers 2018. Retrieved from https://www.ybs.co.uk/assets/files/first-time-buyers-report.pdf [accessed 18 July 2017]

Scottish Government. (2018, June 11). Housing Statistics for Scotland: Private new build. Retrieved from http://www.gov.scot/Resource/0053/00536534.xls [accessed 26 June 2018]

Scottish Government. (2018). Housing Statistics for Scotland - Private new build. Retrieved from http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS/NewBuildPrivate [accessed 23 July 2018]

Registers of Scotland. (2018). Property Market Report 2007-08 to 2017-18. Retrieved from https://www.ros.gov.uk/__data/assets/pdf_file/0008/96632/Property-Market-Report-2007-08-to-2017-18.pdf [accessed 26 June 2018]

Registers of Scotland. (2018). Property Market Report 2007-08 to 2017-18 tables. Retrieved from https://www.ros.gov.uk/__data/assets/excel_doc/0006/94551/Property-Market-Report-2007-08-to-2017-18-Tables-Protected.xls [accessed 17 July 2017]

Stephens, M., Perry, J., Wilcox, S., Williams, P., & Young, G. (2018). 2018 UK Housing Review. Retrieved from https://www.ukhousingreview.org.uk/ukhr18/compendium.html [accessed 23 July 2018]

BBC. (2017, July 23). Mortgage rationing gets tougher. Retrieved from http://news.bbc.co.uk/1/hi/business/7811357.stm [accessed 23 July 2018]

Scottish Government. (2018, June). Scottish Housing Market Review Q2 2018. Retrieved from http://www.gov.scot/Resource/0053/00537502.pdf [accessed 16 July 2018]

Registers of Scotland. (2018). Local Authority Residential Property Data for the Calendar month of May 2018. Retrieved from https://www.ros.gov.uk/__data/assets/pdf_file/0005/98510/monthly_stats_la_table_May_2018.pdf [accessed 23 July 2018]

UK Finance. (2018, February 21). Strong growth across the mortgage market. Regional lending tables. Retrieved from https://www.ukfinance.org.uk/wp-content/uploads/2018/02/Regional-lending-trends-Scotland-FINAL-1.xlsx [accessed 19 July 2018]

Council of Mortgage Lenders. (2017, May 30). Housing in Scotland: a key political issue. Retrieved from https://www.cml.org.uk/news/news-and-views/housing-and-mortgage-markets-north-of-the-border/ [accessed 19 July 2017]

UK Finance. (2018, May 23). 23rd May 2018. Retrieved from Scotland remortgages at seven year high. [accessed 26 June 2018]

UK Finance. (2018, August 22). Remortgaging in Scotland continues to grow as house purchase activity softens. Retrieved from https://www.ukfinance.org.uk/remortgaging-in-scotland-continues-to-grow-as-house-purchase-activity-softens/ [accessed 29 August 2018]

UK and Irish housing markets: a first-time buyer perspective. (2017, September). Retrieved from https://www.ukfinance.org.uk/wp-content/uploads/2017/09/UK-and-Irish-housing-markets-Final.pdf [accessed 23 July 2018]

Scottish Government Centre for Housing Market Analysis. (2018, March). Scottish Housing Market Review Q1 2018. Retrieved from http://www.gov.scot/Resource/0053/00533728.pdf [accessed 26 June 2018]

Bank of Scotland. (2018, July 13). Half of Scots no longer believe they will buy their own home. Retrieved from https://www.lloydsbankinggroup.com/globalassets/documents/media/press-releases/bank-of-scotland/2018/180713_hsl_homeowners.pdf [accessed 16 July 2018]

Legal and General. (2018). Bank of Mum and Dad. Retrieved from https://www.legalandgeneral.com/retirement/retirement-news/2018/bank-of-mum-and-dad-report-2018.pdf [accessed 02 July 2]

Udagawa, C., & Sanderson, D.P. (2017, March). The impacts of family support on access to homeownership for young people in the UK. Retrieved from https://www.cchpr.landecon.cam.ac.uk/Projects/Start-Year/2016/Research-impact-family-support-access-homeownership-young-people-UK/family_support/DownloadTemplate [accessed 16 July 2018]

Scott, J., Macmillan, K., & Reid, S. (2011). The Evaluation of Low Cost Initiative for First Time Buyers. Retrieved from http://www.gov.scot/resource/doc/338455/0111369.pdf [accessed 02 July 2018]

Scottish Executive. (2005). Homes for Scotland's People: A Scottish Housing Policy Statement. Retrieved from http://www.gov.scot/Resource/Doc/37428/0023276.pdf [accessed 02 July 2018]

Offord, C. (2018, July 23). The CML on Scotland’s housing market vs the rest of the UK. Retrieved from https://www.mortgageintroducer.com/cml-scotlands-housing-market-vs-rest-uk/ [accessed 23 July 2018]

Scottish Government. (2017, November 8). Help to build own home. News release 8 November 2017. Retrieved from https://beta.gov.scot/news/help-to-build-own-home/ [accessed 26 June 2018]

Scottish Government. (2018, February). A consultation on the Proposed Land and Buildings Transaction Tax First-Time Buyers Relief. Retrieved from http://www.gov.scot/Resource/0053/00531199.pdf [accessed 17 July 2018]

Scottish Government. (2018, January). Affordable Housing Supply Programme Out-turn Report 2016-17. Retrieved from https://beta.gov.scot/publications/affordable-housing-supply-programme-out-turn-report-2016-2017/AHSP%20-%202016-2017%20-%20Out-turn%20Report.pdf?inline=true [accessed 02 July 2018]

Scottish Government. (2018). Housing Statistics for Scotland - AHSP summary. Retrieved from http://www.gov.scot/Topics/Statistics/Browse/Housing-Regeneration/HSfS/NB-AHIP [accessed 17 July 2018]

Scottish Government. (n.d.) No title Retrieved from https://beta.gov.scot/publications/affordable-housing-supply-programme-out-turn-report-2015-2016/AHSP%20-%202015-2016%20-%20Out-turn%20Report%20-%20February%202017.pdf?inline=true

Berry, K. (2016, November). Scrutiny of the Draft Budget 2017/18: Summary of written evidence -housing supply. Retrieved from http://www.parliament.scot/S5_Local_Gov/Inquiries/20161116_Budget_SPICeSummaryOfEvidenceHousing.pdf [accessed 25 June 2018]

Scottish Parliament. (n.d.) Written Question S5W-13325, Answered 20 December 2017. [accessed 17 July 2017]

Scottish Government. (2017, May 13). Fresh help for house buyers. News release 17 May 2013. Retrieved from http://www.gov.scot/News/Releases/2013/05/Shared-equity-17052013 [accessed 26 June 2018]

Scottish Housing News. (2017, March 31). Help to Buy scheme higher price cap retained for 2018/19. Retrieved from http://www.scottishhousingnews.com/14687/help-to-buy-scotland-scheme-higher-price-cap-retained-for-201819/ [accessed 02 July 2018]

Scottish Government. (2017, November 17). Help to Buy (Scotland) monitoring information 2013-2016: report. Retrieved from https://beta.gov.scot/publications/help-to-buy-scotland-monitoring-information-report-2013-2016/ [accessed 02 July 2018]

Scottish Government. (2018, June 12). Help to Buy (Scotland) monitoring information report 2017-2018. Retrieved from https://beta.gov.scot/publications/help-to-buy-scotland-monitoring-information-report-2017-2018/ [accessed 02 July 2018]

mygov.scot. (n.d.) Help to Buy (Scotland) Affordable New Build scheme. Retrieved from https://www.mygov.scot/help-to-buy/information-for-lenders-and-ifas/ [accessed 17 July 2018]

Scottish Parliament. (2018, June 26). Scottish Parliament Written Question S5W-17297, answered 26/6/18. Retrieved from http://www.parliament.scot/parliamentarybusiness/28877.aspx?SearchType=Simple&Keyword=help%20to%20buy&ExactPhrase=True&DateChoice=0&SortBy=DateSubmitted&ResultsPerPage=10 [accessed 18 July 24]

Registers of Scotland. (2018). Quarterly statistics time series. Retrieved from https://www.ros.gov.uk/__data/assets/excel_doc/0013/22324/JAN-MAR-18-TIMELINE.XLS [accessed 23 July 2018]

Scottish Government. (2017, November 29). Help to Buy (Scotland) Affordable New Build Scheme: FOI release. Retrieved from https://beta.gov.scot/publications/foi-17-02487/ [accessed 02 July 2018]

Persimmon PLC. (2017, December). Disciplined growth and value creation Annual Report 2017. Retrieved from https://www.persimmonhomes.com/corporate/media/340484/annual-report-2017.pdf [accessed 02 July 2018]

Taylor Wimpey PLC. (n.d.) Delivering quality Annual Report and Accounts 2017. Retrieved from https://taylorwimpeyar.blacksunplc.com/documents/annual-report.pdf [accessed 02 July 2018]

Scottish Government. (2015, January 9). Help to Buy: Guidance for Builders. Retrieved from https://beta.gov.scot/publications/help-to-buy-guidance-for-builders/ [accessed 17 July 2018]

Scottish Government. (2018, June 12). Help to Buy (Scotland) monitoring: characteristics of households report. Retrieved from https://beta.gov.scot/publications/help-to-buy-scotland-monitoring-characteristics-of-households-report-2016-2017/ [accessed 02 July 2018]

Wilson, W., Hannah, C., Seely, A., & Barton, C. (2017, December 28). Extending home ownership: Government initiatives. Retrieved from https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN03668 [accessed 18 June 2018]

Shelter Scotland. (2017). Scrutiny of Draft Budget 2017-18 Submission from Shelter Scotland. Retrieved from http://www.parliament.scot/S5_Local_Gov/Inquiries/20161024_Budget_ShelterScotland.pdf [accessed 18 July 2018]

McKee, K. (2010, July 29). Promoting Homeownership at the Margins: the experience of low-cost homeownership purchasers in regeneration areas. Retrieved from https://extra.shu.ac.uk/ppp-online/promoting-homeownership-at-the-margins-the-experience-of-low-cost-homeownership-purchasers-in-regeneration-areas/ [accessed 23 July 2018]

Homes for Scotland. (2018, April 4). Help to Buy scheme set to benefit even more Scots. Retrieved from https://www.homesforscotland.com/Latest-news/ArticleType/ArticleView/ArticleID/689 [accessed 2 July 2018]

Homes for Scotland. (2018, April 4). Help to Buy scheme set to benefit even more Scots. Retrieved from https://www.homesforscotland.com/Latest-news/ID/689/Help-to-Buy-scheme-set-to-benefit-even-more-Scots [accessed 18 July 2018]

Finlay, S., Ipos Mori, ., Williams, P., & Whithead, C. (2016, February). Evaluation of the Help to Buy Equity Loan Scheme. Retrieved from https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/499701/Evaluation_of_Help_to_Buy_Equity_Loan_FINAL.pdf [accessed 02 July 2018]

House of Commons. (2018, March 14). Written Questions - 131828 Answered by: Dominic Raab on 14 March 2018. Retrieved from https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-03-09/131828/ [accessed 18 July 2018]

Help to Buy Wales Evaluation Report. (2016, March 09). Retrieved from https://gov.wales/docs/caecd/research/2016/160309-help-to-buy-wales-interim-summary-en.pdf [accessed 2018 July 02]

National Assembly for Wales. (2018, May 1). National Assembly for Wales, Statement by the Minister for Housing and Regeneration: Low Cost Home Ownership Record Plenary 01/05/2018. Retrieved from http://record.assembly.wales/Plenary/4979#A43146 [accessed 23 July 2018]

National Assembly for Wales. (2018, July 10). Plenary Debate: The Affordable Housing Supply Review, 10 July 2018. Retrieved from http://record.assembly.wales/Plenary/4998#A44849 [accessed 23 July 2018]

Last Updated: 17/2 10:18pm

An error occured while loading, please try again in a few minutes.