How does a shared equity scheme work for buying a home in Scotland?

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Shared equity in Scotland works differently in detail from shared ownership schemes elsewhere in the UK, though the underlying principle -- part-buy, part-subsidised-equity -- is similar, aimed at helping people who cannot afford to buy a home outright on the open market. **How the scheme works** A buyer purchases a share of a property (the exact percentage depends on the specific scheme and their affordability assessment, but commonly falls somewhere between 60% and 90%), funding this through a mortgage and their own deposit in the normal way. The remaining share is retained by a public funder (commonly the Scottish Government working through housing associations or local authorities), and crucially, no rent or interest is charged on this retained equity share -- unlike some English shared ownership models, which do charge rent on the landlord's retained share. **Open Market Shared Equity (OMSE) vs New Supply Shared Equity (NSSE)** Open Market Shared Equity applies to homes bought on the open market (existing homes for sale generally, not specifically built for the scheme), typically aimed at specific priority groups such as first-time buyers, social tenants wanting to buy, and people with particular support needs. New Supply Shared Equity applies to new-build homes specifically developed as part of the scheme, often built by housing associations in partnership with developers. **Eligibility** Eligibility criteria include income limits (varying by scheme and household composition), being unable to afford to buy a suitable home on the open market outright without the scheme's help, and often being a first-time buyer, though some schemes have provisions for other priority groups too. **Staircasing -- buying more of the property over time** Buyers can generally choose to "staircase" -- purchasing additional shares of the equity from the public funder over time, working towards full ownership, though this is not compulsory, and some buyers remain on a shared equity basis long-term or indefinitely, depending on their circumstances and the specific scheme rules. **Selling a shared equity property** When the property is eventually sold, the proceeds are split proportionally between the buyer and the funder based on their respective equity shares at the time of sale -- since no interest or rent has been charged on the funder's share throughout ownership, but the funder's share does benefit (or lose out) proportionally from any change in the property's market value, similarly to the buyer's own share. **Comparison with shared ownership in England** A key difference from English shared ownership (where rent is typically charged on the landlord's retained share, in addition to mortgage payments on the owned share) is the absence of rent on the Scottish public funder's equity share, which can make Scottish shared equity comparatively cheaper on a month-to-month basis for an equivalent ownership percentage, though overall affordability still depends on the buyer's specific mortgage terms and deposit. **Practical tip** Check current eligibility criteria, available equity share percentages, and property availability through Scotland's official shared equity scheme information (administered regionally through housing associations and local authorities), since specific scheme rules and available funding can change, and demand for new-build shared equity homes in particular can significantly exceed supply in some areas.

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