The Scottish Government’s new First Homes Fund opened to applications today, offering first-time buyers up to £10,000 towards the cost of buying their first home. It is a shared equity scheme, which means the government takes a share in your property rather than lending you money you have to pay back month by month. For anyone trying to get a first foot on the property ladder in Scotland, it is welcome news. It also comes with conditions that are worth understanding before you apply, so here is a clear look at how it works, who can use it, and how we can help you through the process.
What is the First Homes Fund?
The First Homes Fund is a shared equity scheme funded by the Scottish Government. It opened to applications on 24 June 2026 and is backed by £500 million over the course of this Parliament. The government expects it to help around 50,000 households become homeowners, with up to 2,000 supported in the first hundred days alone.
It is worth clearing up a common source of confusion straight away. This is not the same as the original First Home Fund that ran between 2019 and 2021, which contributed up to £25,000. The new First Homes Fund is a separate scheme with different terms. The contribution is now up to £10,000, and it can be used towards any home valued at up to £300,000.
How the scheme works
Under the scheme, the Scottish Government contributes up to £10,000 towards your purchase and, in return, takes an equity share in your home. The size of that share depends on the price of the property. If you buy a home for £100,000 and receive the full £10,000, the government owns a ten per cent share. On a more expensive property, the same £10,000 represents a smaller percentage.
Importantly, you still own your home outright in the everyday sense. You hold full title and the deeds are in your name. There are no monthly payments to make to the government and no interest is charged on its share. That share is normally repaid only when you sell the property, or when another payment event set out in your shared equity agreement is triggered. To take part, you will need a mortgage on the property, which is how the government’s share is protected.
Who is eligible?
The scheme is aimed squarely at first-time buyers. For these purposes, a first-time buyer is someone who does not currently own, and has never previously owned, a property in Scotland or anywhere else in the world. If you are buying jointly, it is sensible for each of you to check that you meet that definition before applying.
Beyond that, the property you are buying must be valued at no more than £300,000, and you must have a mortgage in place.
Which lenders are taking part?
A scheme like this only works if mortgage lenders are on board. At launch, the following lenders have signed up: Leeds Building Society, Scottish Building Society, Glasgow Credit Union, NatWest and Lloyds Banking Group. The Scottish Government has said it expects more lenders to join in the months ahead, so it is worth checking the latest position when you come to arrange your mortgage.
Your responsibilities as the owner
Although the government holds a share in your home, the day to day responsibilities of ownership sit entirely with you. You remain responsible for your mortgage, your buildings insurance and home contents insurance, all repairs and maintenance, your Council Tax, your heating, lighting and water bills, and the fittings and furniture in your home. In other words, the equity share affects how the value of the property is divided when you sell, not how the home is run while you live in it.
The legal side, and where your solicitor comes in
A shared equity purchase has a few more moving parts than a standard purchase, and this is where having an experienced conveyancing solicitor really matters. Alongside your mortgage, the Scottish Government’s share is secured over your home, which means there is a shared equity agreement and an additional security to prepare and register correctly.
Your solicitor will examine and report on the title, deal with both your lender’s standard security and the government’s security, and make sure everything ties together properly at settlement. Just as importantly, we will explain the longer term implications, particularly what happens to the government’s share when you eventually sell or decide to repay it. You can read more about what we do for buyers in our guide to conveyancing for buyers in Scotland and our comprehensive guide to buying a house in Scotland.
Do not overlook first-time buyer tax relief
The First Homes Fund is not the only help available to first-time buyers in Scotland. When you buy, you will normally pay Land and Buildings Transaction Tax, but first-time buyers benefit from a relief that raises the nil rate threshold from £145,000 to £175,000. That is a saving of up to £600, and your solicitor will claim it for you and file the return with Revenue Scotland as part of the purchase.
Could you combine it with a Lifetime ISA?
Many first-time buyers also save for their deposit using a Lifetime ISA, which adds a government bonus to your savings. The two can work alongside each other, but timing and procedure matter, especially around the date of entry. We explain the practical points in our article on using a Lifetime ISA to buy your first home in Scotland.
Frequently Asked Questions about the First Homes Fund
Q: Is the First Homes Fund the same as the old First Home Fund?
A: No. The First Homes Fund launched in June 2026 and contributes up to £10,000. The earlier First Home Fund, which ran between 2019 and 2021, contributed up to £25,000. They are separate schemes with different rules.
Q: Do I have to pay the money back?
A: There are no monthly payments and no interest. The government’s equity share is normally repaid when you sell your home or when another payment event in your shared equity agreement occurs.
Q: Do I need a mortgage?
A: Yes. You must have a mortgage on the property so that the government’s share is protected.
Q: What is the most expensive property I can buy?
A: The home you are buying must be valued at no more than £300,000.
Q: Who counts as a first-time buyer?
A: Someone who does not own, and has never previously owned, a property anywhere in the world.
How Wallace Quinn can help
If you are thinking about using the First Homes Fund, the best time to speak to a solicitor is early, before you commit to a purchase, so that everything is lined up and there are no surprises later. Our residential conveyancing teams across our offices in Baillieston in Glasgow, Livingston and Bathgate help first-time buyers onto the property ladder every week, and we would be glad to guide you through both the scheme and the wider buying process.
To get started, you can request a quote using our residential conveyancing or new-build fee calculators or simply get in touch with your nearest office. You can also read the official scheme details on mygov.scot and the Scottish Government’s announcement.
If you liked this, you might also like these articles: