Home Builder Guidance for applying to the Help to Buy (Scotland) Scheme important information – the help to buy (scotland) scheme’S 2015/16 budget has been fully allocated

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Home Builder Guidance for applying to the Help to Buy (Scotland) Scheme


  1. As the Help to Buy (Scotland) scheme is not currently accepting any more application forms, home builders can only register to participate in the Help to Buy Small Developers Scheme. This document sets out the detail for both schemes and it will set out the registration process for home builders wishing to register to participate in the Small Developers Scheme.


  1. The Help to Buy (Scotland) scheme was launched on 27 September 2013 by the Deputy First Minister Nicola Sturgeon. It will provide funding for property transactions covering the period between 27 September 2013 and 31 March 2016. No transactions can conclude past the date of 31st March 2016.

  1. The Help to Buy (Scotland) Small Developers scheme was launched on 12 January 2015 by the First Minister Nicola Sturgeon. It will provide funding for properties completed between 01 April 2015 and 31 March 2016.

  1. Help to Buy has a budget of £325m split over three financial years as follows:

£35m for financial year 2013-14;

£140m for financial year 2014-15; and

£130m for financial year 2015-16. (including £30m for Small Developers scheme).

  1. In 2015-16 the Help to Buy (Scotland) scheme only funds properties sold by the top twenty builders (see Annex A).


  1. The Help to Buy (Scotland) schemes are demand led and once funding for the scheme has been fully allocated, no further applications can be considered.

  1. IMPORTANT INFORMATION - The Help to Buy (Scotland) scheme’s 201516 budget has now been fully allocated. All applications received by our administering agents before the closure deadline will be assessed and supported if eligible under the rules of the scheme.

  1. Application forms can be submitted nine months prior to the anticipated completion date. Please note that transactions approved cannot conclude after 31 March 2016. If the transaction is due to conclude after this date, it will fall and no assistance can be provided to eligible buyers.

The Position with the Help to Buy (Scotland) Small Developers Scheme

  1. The Help to Buy (Scotland) Small Developers scheme is still open for applications from small and medium sized builders and any new registered builders. The scheme administering agents are aware which registered builders are participating in the scheme.

An overview of the Help to Buy (Scotland) Scheme and the Help to Buy (Scotland) Small Developers Scheme

  1. Assistance will be offered to buyers who wish to purchase a new build home from a home builder who has registered to participate in the Help to Buy (Scotland) Small Developers scheme with the Scottish Government.

  1. The scheme will not be available for part-exchange, buy-to-let or self-build.

  1. Please apply at least three months in advance of the completion date to allow the necessary legal paperwork to be completed.

  1. The maximum property price for Help to Buy is £250,000. Any homes sold for a price above this maximum threshold will not be eligible for assistance under the scheme.

  1. Buyers will be required to purchase at least 80% of the purchase price of a home through mortgage and deposit, a minimum of a 25% mortgage is required to participate. Buyers will be able to obtain assistance from the Scottish Government from 10% to 20% of the purchase price (subject to the maximum threshold price of £250,000). The Scottish Government will hold its equity stake by way of a shared equity agreement that it will enter into with the buyer.

  1. Home builders will receive the sale price for purchased homes through a combination of the buyer’s mortgage finance and the assistance provided by the Scottish Government to the buyer. The Scottish Government’s contribution will be made available to the buyer’s solicitor at legal completion of the purchase.

  1. The scheme is managed and administered by administering agents on behalf of the Scottish Government. Further details on these organisations can be found in Annex B.

Registration Details for House Builders and Developers

  1. All small and medium sized builders are eligible to register to participate in the Help to Buy (Scotland) Small Developers scheme.

  1. Since 12 January 2015 no large builder (see Annex A) can register a subsidiary company or Joint Venture to participate in the Help to Buy (Scotland) Small Developers scheme. Home builders can request a Registration Form from housingmarkets@scotland.gsi.gov.uk.

  1. Home builders will also be sent a blank Participation Agreement, which they are strongly advised to read as they will be required to confirm their agreement to it when they register to participate in the scheme.

  1. In the Registration Form, home builders are asked to provide accurate sales forecasts for 2015/16, per quarter, as well as accurate sales values of properties to be sold under Help to Buy. Home builders should note that sales for 2015/16 must complete by 31 March 2016. No funds will be available after this date and sales will not proceed if they do not conclude before this date.

  1. Home builders should complete the Registration Form and return it the Scottish Government by email to housingmarkets@scotland.gsi.gov.uk. All Registration Forms that are submitted by home builders will be reviewed by the Scottish Government.

  1. The Scottish Government will use the information provided by home builders in the Registration Form to estimate demand across Scotland.

  1. Please note that the scheme is very popular and registrations do not guarantee that funds will be available for future sales. Funds will be allocated on a first come, first-served basis for individual members of the public.

  1. If their registration is successful, home builders will be required to enter into a Participation Agreement with Scottish Ministers. Home builders will be sent a Participation Agreement electronically, to be printed off. The document should be signed and witnessed, with the home builder retaining a copy for their own records.

  1. The name of Company who will be entering into the Participation Agreement with Scottish Government should be the name entered on all documents relating to the reservation, application and sale of eligible properties.

  1. An electronic version of the full document should be returned by email to housingmarkets@scotland.gsi.gov.uk with a full, signed, hard copy returned to: Housing Supply Division, 1G- South, Victoria Quay, Edinburgh, EH6 6QQ.

  1. Please be aware that you cannot participate in the scheme or advertise the scheme until we have received the signed copy of the Participation Agreement. Once we have received a signed copy we will add your company to the list of participating home builders on our website (www.gov.scot/htb).

Other Key Information for House Builders and Developers

  1. As a general rule, all properties must be covered by an industry-recognised warranty, such as NHBC and home builders are expected to have adopted the Consumer Code for Homes Builders


  1. On a case by case basis Scottish Government may agree that particular homes may be covered by a suitable professional consultant’s warranty, but only where a purchaser’s primary lender has confirmed its acceptance of such a warranty and where the benefit of the warranty is also extended to Scottish Ministers.

  1. Homes which have been previously occupied either by an owner occupier or a tenant before sale may not be purchased with assistance under the scheme.

  1. Homes built to fulfil affordable housing obligations pursuant to Section 75 Agreements (under the Town and Country Planning (Scotland) Act 1997) are not eligible for assistance under the scheme. Homes sold under the scheme must be market sale homes that are advertised on the open market.

  1. Home builders may have their own independent financial advisors although they must inform prospective buyers that they may seek independent financial advice from any other source.

Reservation Fees

  1. If a person has paid a deposit/reservation fee to a home builder and they are not eligible to receive funding from the scheme any deposit/and or reservation fee that they have paid should be returned to them by the home builder. Home builders must comply with Section 4.6 of the Participation Agreement that they have entered into with Scottish Ministers. It reads as follows:-

Non-compliant contracts with purchaser
The Provider (i.e. the home builder) hereby agrees that in the event it enters into any contract with an Eligible Purchaser for the purchase of a Dwelling using the Help to Buy (Scotland) Scheme  and the Provider is not eligible to receive Equity Funding in relation to such transaction (whether as a result of a Provider Default or otherwise) then the Provider shall unconditionally release the Eligible Purchaser from such contract and return to them any deposit and/or reservation fee paid by that Eligible Purchaser. 

General Information on Scottish Government Equity Stake

  1. The sale price of homes sold under the scheme must be no greater than the main mortgage lender’s independent valuation. It is a requirement of the scheme for buyers to take out and maintain a mortgage with a qualifying lender. A list of lenders is available on the Help to Buy (Scotland) website (www.gov.scot/htb).

  1. Home builders should be aware that any incentives offered to purchasers will need to comply with Council of Mortgage Lenders (CML) Guidance and not exceed 5% of the open market purchase price. Home builders will be required to use the CML ‘Disclosure of Incentives’ form which can be downloaded at


  1. If an owner decides to sell their property and for example has an 80% stake in their property, the Scottish Government will receive 20% of the value at the time of the sale. Owners may choose to ‘tranche up’ and purchase additional equity in their home and the minimum amount they are expected to ‘tranche up’ by is 5 %.

Role of Agents administering the scheme

  1. There are currently four Administering Agents who will administer the scheme on behalf of the Scottish Government. Contact details are provided in Annex A.

  1. Home builders are strongly encouraged to work closely with the agent administering the scheme in their area.

  1. Administering Agents will assess applications to the scheme from prospective buyers to determine whether they meet certain criteria. They will inform prospective buyers if their application is eligible, also notifying the developer and buyer’s solicitor, within five working days.

Registration Process Queries

  1. If a home builder has any registration process, enquiries or general questions about the scheme, please email housingmarkets@scotland.gsi.gov.uk and we will respond to you as soon as possible.

Housing Supply Division

May 2015
Annex A
For 2015-16 the developers listed below will be supported by the Help to Buy (Scotland) scheme, all other builders will be supported by the Help to Buy (Scotland) Small Developers scheme.

BDW Trading Limited (Barratts & David Wilson Homes)

Bellway Homes Limited

Bett Homes Limited

CALA Management Limited

Charles Church Developments Limited

Cruden Homes Group (Cruden Estates Limited & Cruden Homes (East) Limited)

Dawn Homes Limited

Dundas Estates & Development Co Limited

Kier Homes (Caledonia) Limited

MacTaggart & Mickel Homes Limited

Miller Homes Limited

Muir Homes Limited

O'Brien Properties Limited

Persimmon Homes Limited

Robertson Homes Limited

Springfield Properties PLC

Stewart Milne Group Limited

Taylor Wimpey UK Limited

Tulloch Homes Limited

Walker Group (Scotland) Limited

Annex B

Contact Details of Administering Agents


Local Authority Areas Covered

Albyn Enterprises Limited

68 MacLennan Crescent




01463 701 271


Eilean Siar (Western Isles)

Shetland Islands

Grampian Housing Association Limited
Huntly House
74 Huntly Street
AB10 1TD


0800 1214496


Aberdeen City



Link Homes
Watling House
Callendar Business Park

Telephone: 08450 020 163

Mobile: 03451 400 100

Edinburgh, East Lothian, Midlothian,
West Lothian, Scottish Borders and Fife

Angus, Clackmannanshire, Dundee, Falkirk,
Perth & Kinross and Stirling

Glasgow, East Renfrewshire, Renfrewshire,
East and West Dunbartonshire, Inverclyde,
North and South Lanarkshire, North, South and
East Ayrshire, Argyll & Bute and
Dumfries & Galloway

Orkney Housing Association Limited
39a Victoria Street
KW15 1DN


01856 875253

Orkney Islands

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