First Homes Fund - Scotland

 

Dreaming of owning your first home in Scotland? The new First Homes Fund could help get you moving sooner. 

The First Homes Fund has been exclusively designed to help eligible first-time buyers take that exciting step onto the property ladder by providing an interest free equity loan towards the deposit on their first home. Here’s everything you need to know. 

The Scottish First Homes Fund Explained 

Put simply, the First Homes Fund is a shared equity scheme for first-time buyers in Scotland. The Scottish Government can contribute up to £10,000 towards your deposit on a home worth up to £300,000, in return for a small share in the property.

You’ll still own and live in your home as normal, and there’s no rent to pay on the government’s share. 

And when the time comes to sell your home, you’ll simply pay the government back the same percentage of the property’s value that they originally contributed. 

Having launched on Wednesday 24th of June 2026, this scheme is the latest version, having previously been available from 2019 to 2022 with different conditions. 

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First Homes Fund Equity Example

The Scottish Government’s equity stake is calculated as a percentage of the purchase price or valuation of your property, whichever is lower.

For example, if the government contributes £10,000 towards the purchase of a £100,000 property, it owns a 10% equity share. If the property is later sold for £200,000, the government would receive £20,000, representing 10% of the sale price.

 

First Homes Fund Eligibility Criteria

The Scottish Government’s equity stake is calculated as a percentage of the purchase price or valuation of your property, whichever is lowest.  

For example, if the government contributes £10,000 towards the purchase of a £100,000 property, it owns a 10% equity share. If the property is later sold for £200,000, the government would receive £20,000, representing 10% of the sale price.

 

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What are the First Homes Fund Scotland’s Pros and Cons?

As with any scheme, Scotland’s First Homes Fund has pros and cons that are important to consider before applying. 

Pros:

  • No monthly payments: You pay a lump sum back to the government when your home sells. 

  • Potential to have a lower loan to value: The government contribution means you’ll be able to put down a larger deposit, which could reduce your loan to value and offer more favourable mortgage rates.

 

Cons: 

  • Government repayment scales with value: You repay a percentage of the final sale price rather than the amount you borrowed from the government meaning that if your property value increases, so does the amount required to be paid back to the government. 

  • Special permission is required from the government to remortgage or rent out the home: If you’re purchasing a home with the intention of renting it out in the future, this scheme may not be suitable.

 

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Avant Developments Taking Part

The First Homes Fund is available to first-time buyers interested in purchasing selected plots on the following developments*:

*Available on selected plots and developments only. To find out more about First Homes Fund, speak to your Sales Advisor or Financial Advisor.

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For more information, you can read about the First Homes Fund on the  Scottish Government’s website as well as their supporting information about the scheme.

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