On 24 June 2026, the Scottish Government’s First Homes Fund opened for applications, offering first-time buyers an equity contribution of up to £10,000 towards a home with a purchase price of no more than £300,000. The scheme is open to anyone who has never owned a property anywhere in the world, purchasing either a new-build or existing home with a mortgage. 

The mechanics are straightforward. The Scottish Government takes an equity share in the property proportionate to its contribution. A £10,000 stake in a £200,000 property represents a 5% equity share. There are no monthly payments and no interest charged. The share is repaid as a percentage of the sale price when the property is eventually sold. Applications are handled through Link Housing, once an offer has been accepted or a plot reserved. 

Cabinet Secretary for Social Justice and Housing described the fund as a direct response to the experience of people across Scotland, particularly younger buyers who find that the deposit barrier is simply too high even when their income could support a mortgage. The scheme is expected to support 2,000 households in its first 100 days and 50,000 over the life of this parliament. 

For the property sector, this is a meaningful demand-side intervention at a time when transaction volumes and buyer confidence are being closely watched. It is worth noting the practical limits: in Edinburgh, where the average selling price for a mortgage buyer was approximately £296,000 in April 2026, the £300,000 cap means many city-centre properties will not qualify, and buyers in higher-value areas will need to look carefully at what the scheme can realistically support. But for first-time buyers in most of Scotland, the fund represents a genuinely useful reduction in the upfront savings required.