According to official figures, since its introduction in 2013, over twelve thousand households have already taken advantage of the scheme which allows participants to purchase qualifying new build homes with a 5% deposit.
This, in turn, has supported an estimated nine thousand jobs and contributed over half a billion pounds in Gross Value Added to the economy.
Kevin Stewart, Housing minister, said: "A third of the annual £50m budget - £18m - will be reserved for sales from SME builders, who were particularly affected by the drop in development finance after the financial crisis.
We know house builders still see Scotland as a place to continue to develop and invest, with the latest figures showing new house completions grew by 5% over the last year.
Housing is about more than bricks and mortar - we want to provide safe, warm homes, help create a fairer Scotland, and preserve a diverse and more resilient construction sector."
Nicola Barclay, chief executive of Homes for Scotland, commented: “This is great news on a number of different fronts as the Scottish Government clearly recognises the value and wide-ranging benefits that its Help to Buy initiative provides.
By allocating further targeted funding until 2021, it is not only extending the opportunity of home ownership to more Scots who are currently saving to buy their own home but will also provide the much-needed confidence and certainty that housebuilding companies need to continue to invest and grow their businesses in Scotland. This positive message is fundamental to helping us work together to increase the supply of new housing.
It is essential to remember that, as well as being directly responsible for additional new homes being built, Help to Buy is also relieving pressure on the public sector with earlier figures showing that around five per cent of purchasers have moved from social rented housing and a further five per cent were on a social housing waiting list.
With Help to Buy providing an equity stake that is repayable to the Scottish Government, and with receipts received to date higher than projected, the scheme is already demonstrating its value as an effective housing policy driver for the delivery of new homes, enabling Scots to purchase a new-build home without the need for a large deposit, and with very little impact on the public purse.”
Douglas Cochrane, Chair of the UK Finance Scotland Mortgage Committee, said: “The extension of Help to Buy in Scotland is good news for buyers and home movers with low deposits, who will continue to receive vital support when buying a new-build home.
Last year the number of first-time buyers in Scotland reached its highest level in a decade, boosted by vital schemes like Help to Buy.
Today’s announcement will bring welcome stability to the Scottish mortgage market and help more people get a foot on the housing ladder in the years ahead.”
