The Scottish government has announced that no more applications for the Help to Buy Scotland scheme will be accepted.
In the past, Scotland has seen the Help to Buy schemes pulled up short because of a lack of funding, as demand far outstrips the cash available. And the same has happened again this year, as the funding runs out just two months into this round of availability.
As of Tuesday 26, at midnight, the scheme will close to new applicant, with the sales already in the pipeline thought to take until February 2016 to be resolved.
The Scottish government had set aside £100 million, but so many people were eager to use the first time buyers scheme that the money has run out.
However, funding for this financial year has been available for people to apply for since July last year.
7,500 house sales through the scheme are expected to be completed this financial year.
The Housing Minister, Margaret Burgess, said “Participating builders have been informed that the main Help to Buy scheme is nearly fully subscribed and we are giving seven days’ notice to allow final applications to the scheme.
“I am pleased sales have far exceeded the industry’s original target of 4,500 and given people across the country the opportunity to buy a new-build home which they could not otherwise afford.”
The fact that the Scottish version of the scheme ran out of funding so quickly indicates how many people are struggling to buy a home. People seem to be desperate to become a homeowner and will flock to anything that could help them on the way to home ownership.
Of course, despite the success of the Help to Buy scheme in helping out individuals, the problem is still that houses are unaffordable to the majority of first time buyers.