The First Homes Fund will provide a £10,000 shared equity contribution from Holyrood towards the purchase of homes valued up to £300,000, helping eligible buyers enter the housing market sooner.

Welcoming the news, Sandy Begbie, CEO Scottish Financial Enterprise, said: “Our sector plays a key role in helping individuals navigate key life moments and realising their ambitions. 

“Getting on the housing ladder is one of these aspirations and this fund will support first-time buyers across Scotland. Many people face significant barriers to home ownership and we welcome the support our members have demonstrated in helping to deliver this scheme.

“We also look forward to working with the Scottish government on the wider housing challenges and opportunities here in Scotland.”

Cabinet Secretary for Social Justice and Housing, Shirley-Anne Somerville, said: “We know how hard it is to get that first foot on the property ladder and the opening of this fund is a direct response to stories I have heard from so many people who are keen to buy their first home.

“The First Homes Fund is part of a broader programme of action, supported by a record £4.9 billion investment in affordable housing over the next four years.”

Scottish Building Society, the world’s oldest remaining mutual, will be one of the first mortgage lenders to support borrowers through the new fund.

Paul Denton, CEO of Scottish Building Society, said: “Helping people buy their own homes remains one of our key priorities and yet buying a first home is still out of reach for so many. 

“Last year we doubled the number of first-time buyers we supported, and we know that many aspiring homeowners continue to face significant affordability challenges.

“There is no single solution to improving access to homeownership. Different buyers have different circumstances, which is why it is important that a range of options are available to help people take that first step. The First Home Fund is a welcome addition to the support already available and will provide another route into homeownership for eligible buyers.”

Lloyd Cochrane, head of mortgage propositions at Royal Bank of Scotland, added: “We are committed to championing all routes to home ownership and this initiative by the Scottish Government will enable thousands of first-time buyers to turn their aspirations into reality.”