Open Market Shared Equity Scheme

The Scottish Government is committed to helping people meet their aspirations to become home owners and has recently announced an expansion of its scheme to help first-time buyers, The Open Market Shared Equity Pilot (OMSEP). The scheme is being rolled out across Scotland with an increased budget of £60 million for 2009-2010. It is expected to help around 1,500 households this year.

The scheme is part of the Scottish Government's Low-cost Initiative for First Time Buyers (LIFT), to help people on low to moderate incomes buy an affordable home.

Through OMSEP, buyers can own a home, but only pay for a proportion of it - usually between 60 and 80 per cent of its value - with the Government funding the remainder through taking an interest-free equity stake. The buyer does not pay any charges on the equity stake, but pays the Scottish Government a proportion of the sale price when they decide to sell further down the line, or earlier if they wish.