Scotland shared equity scheme hit as demand plummets

  More than one in five homes built for first-time buyers in Scotland are lying empty, according to figures from the Scottish government.   The properties built using the New Supply Share Equity scheme, which was to allow people on lower incomes to buy new-build properties by housing associations paying up to a 40% stake in the property.   According to the figures, 1324 homes have been built since 2005 for shared equity programmes, and 278 are still empty, with the highest number in Edinburgh. The homes are likely to be used now as rented social housing instead, according to the Scottish Government.   David Stewart, policy and strategy manager with the Scottish Federation of Housing Associations, said “demand had just gone”.   The New Supply Shared Equity programme has grown since 2005-06, when 195 homes were completed, to a high of 519 in 2007-08.   A spokeswoman for the Scottish government said: “Shared equity, especially open market shared equity, is still popular. Over 260 New Supply Share Equity homes, along with over 390 open-market shared equity homes, have been sold across Scotland since April last year.   “However, we are aware that a significant proportion of the new supply shared equity developments have been affected and have put in place new guidance for staff to allow flexibility to find the best solution for each development.”   helen.roxburgh@egi.co.uk