The threshold of the Open Market Shared Equity Scheme in Scotland has been raised by 9% to reflect rising house prices.

The scheme allows people to buy a home without having to fund its entire cost. 

Buyers pay for the biggest share, which sits between 60% and 90% of the property’s cost while the Scottish government holds the remaining share under a shared equity agreement. 

The scheme is open to first-time buyers (FTBs), people aged 60 and over, social renters, disabled people, members of the armed forces, veterans who have left the armed forces within the past two years, and widows, widowers and other partners of service personnel for up to two years after their partner lost their life while serving. 

Applicants can also make offers on properties above the formal valuation amount, where they have funds available. 

Meanwhile, people who have an application in progress do not need to reapply to benefit from the changes.

Thresholds are set at the lowest 25% of house prices in urban areas and the lowest 50% of house prices in rural areas. 

A further review of the threshold will take place in December 2022 to determine any further changes needed for 2023.

Commenting on the latest threshold review, Scottish government housing secretary Shona Robison says: “These are positive changes which will put applicants on a more level playing field with other buyers when purchasing an affordable home.”

“We are well aware of the rise in house prices, and we have listened to people’s feedback. That is why we are acting to make the process fairer and to offer a helping hand in challenging times.”

“Our evidence-based approach ensures that the scheme continues to be targeted at priority groups and to ensure that, across Scotland, all areas can benefit from a viable scheme with a reasonable number of purchases.”