Scotland’s flagship Open Market Shared Equity plan is shifting focus, squeezing out first-time buyers in favor of targeted groups.
The Scottish Government has revamped its OMSE (Open Market Shared Equity) scheme, removing most first-time buyers except those in priority categories such as social renters and people with disabilities. Critics say the changes risk sidelining young Scots struggling with high rents and mortgage hurdles.
Priority Groups Prevail—But at What Cost?
First-time buyers, once the backbone of OMSE, now find themselves largely ineligible.
This shift follows a sharp fall in scheme participation last year.
Government officials argue that narrowing the focus will make the best use of limited funds.
Yet many worry that sidelining newcomers will shrink the pool of potential homeowners, leaving rental markets even tighter.
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Those who once relied on the scheme to cover 10–40% of a property’s cost are scrambling for alternatives.
How OMSE Worked—and Why It’s Under Pressure
OMSE let buyers pay 60–90% of a home’s price, with the government picking up the rest.
• Income thresholds capped access for higher earners.
• Private tenants and those living with family benefited most.
• Shared equity reduced mortgage sizes, cutting monthly outlays.
But rising house prices have outpaced OMSE’s limits, making many properties out of reach.
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Experts say frozen price bands have rendered the scheme less useful where housing costs ballooned fastest.
A Closer Look at Eligibility Shifts
The new rules carve out eligibility for:
| Buyer Type | Old OMSE Status | New OMSE Status |
|---|---|---|
| First-Time Buyers (General) | Eligible | Ineligible |
| Social Renters | Eligible | Remain Eligible |
| Disability Claimants | Eligible | Remain Eligible |
| Key Workers | Eligible | Remain Eligible |
| Private Tenants | Eligible | Ineligible |
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This table shows who gains—and who loses—under the updated criteria.
Voices from the Frontline: Fallout and Frustration
For thousands of Scots, OMSE was the only viable path to homeownership.
Anna and Martin Sutherland bought through the scheme in 2019.
They credit it with lifting them out of insecure rentals.
“Without OMSE, we’d still be paying rent and feeling stuck,” says Anna.
Now, she worries about her niece, who earns less and can’t meet the new criteria.
Mortgage advisers echo the concern, calling first-time buyers a “vital lifeline.”
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Housing charities warn that excluding newcomers contradicts the government’s declared national housing emergency, announced only a year ago.
What Comes Next for Scotland’s Housing Market?
Market watchers say the squeeze on first-time buyers could fuel rent hikes as more people compete for fewer tenancy options.
Landlords may respond by raising prices, feeling less pressure from would‑be buyers.
That, in turn, might push more Scots to seek bigger deposits or co-ownership schemes—which are even rarer than OMSE slots.
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Meanwhile, the government faces calls to revisit its “short‑sighted” decision and restore general access soon.
