A NUMBER of Scotland's largest construction firms have backed Labour plans to offer deposits to first-time buyers.
Under the scheme, the city council will support first-time buyers who can afford mortgage payments but not the 25% deposit demanded by most banks and building societies.
The council will guarantee the mortgage deposit to these buyers who would pay a much smaller deposit – typically 5% – at a more favourable rate of interest.
Douglas McLeod, regional director Barratt Homes Scotland, said: "This is a fantastic initiative which can only help stimulate the Scottish housing market of which the first-time buyers section is critical."
Alastair Wylie, chairman and chief executive of Glasgow-based construction firm CCG, said: "The proposals to assist purchasers through underwriting a proportion of their loan value will create greater opportunity for people to own their own home and help stimulate much-needed recovery. The knock-on effect will bolster house-building, while also supporting jobs in the construction trade and related sectors."
Labour council leader Gordon Matheson said he was delighted the plan to help first-time buyers had won the backing of some of the country's major construction firms and added: "Our city needs more homes to rent and buy and Labour will do both.
"Labour's First Foot scheme for Glasgow will offer help to those who can pay their mortgages but can't raise the massive deposits."