The Scottish Government

The Scottish Government is committed to helping people on low to moderate incomes to meet their aspirations to become home owners, where that is sustainable for them.

Its Low-cost Initiative for First Time Buyers (LIFT) brings together several ways to help households get onto the housing ladder. These include:

• the New Supply Shared Equity Scheme to allow first time buyers to buy a new build property either from a housing association, or from a private housebuilder;
• the Open Market Shared Equity Pilot Scheme to allow first-time buyers to buy a property on the open market;
• Rural Home Ownership Grants (RHOGs). These are grants that help towards the costs of acquiring, building or renovating a home for people in rural areas who could not otherwise afford to buy. Further information is available in a brochure, Helping you become a home owner in rural areas;
• shared ownership where households buy part-ownership of a property and make an occupancy payment to a registered social landlord on the remaining portion; and
• GRO grants for owner occupation. These are grants to private developers to build houses for sale. They are used both to introduce housing for sale in areas with little or no private housing and to help meet local shortages.

What is shared equity?

Shared equity is a way to buy a home without having to fund all of it. When you buy a shared equity home from a housing association or on the open market you pay for the majority share in it and the Scottish Government pays the rest under an agreement which it enters into with you. You own the home outright, but the Scottish Government holds a security over the proportion of it has funded. When you later sell your home (or earlier if you want to increase your stake), the Government will receive the value at the time of sale of the percentage equity stake funded. If, for example, the Government funds 30% per cent of the purchase price, when the property is sold 30% per cent of the sale value of the property will be returned to the Scottish Government.

When you buy a LIFT shared equity home from a private housebuilder, you also own the home outright, but the Government and the private housebuilder will jointly fund an interest-free equity loan for you and each hold a security over the proportion of your home they have funded. When you later sell your home (or earlier if you want to increase your stake), the Government and the private housebuilder will each recieve the value at the time of sale of the percentage equity stake funded. If, for example, the Government and the private housebuilder each fund 15% of the purchase price, when the property is sold the government and the housebuilder will each recieve 15% of the sales value of the property.

Who is shared equity for?

Our shared equity schemes are open to all first-time buyers on low to moderate incomes. Some buyers (for example, people currently living in council or housing association housing or those from the armed forces) may be given priority if there are more buyers than available houses.

The schemes can also sometimes help people who are not first-time buyers, for example those who are looking for a new home after a big change in their household circumstances. They may also be able to help disabled people to access more suitable housing.