What is a Golden Share?

The Golden Share housing scheme in Edinburgh is an affordable homeownership initiative. Designed to help people buy homes at a reduced price in one of Scotland’s most expensive housing markets. It allows eligible buyers to purchase a property at below market value, typically around 80% of its open market price, while ensuring the home remains affordable for future buyers through legal restrictions.

Unlike renting or Shared Ownership models, the Golden Share scheme provides full home ownership from day one. Conditions are attached to preserve long-term affordability.

In a city like Edinburgh, house prices are significantly higher than the Scottish average. This scheme plays an important role in helping first-time buyers and moderate income households get onto the property ladder.

Why was the Golden Share Scheme introduced in Edinburgh?

Edinburgh has experienced long-term housing pressure due to several factors:

• Strong population growth
• High demand from students and professionals
• Limited land for new housing development
• Rising private property prices
• Strong investment interest in the city

As a result, many local residents, particularly younger buyers and key workers find it difficult to purchase homes on the open market.

The Golden Share scheme was introduced as part of broader affordable housing policy requirements placed on developers. When new housing developments are built, a proportion of homes must be made affordable. Golden Share homes are one way developers meet this obligation.

How does the Golden Share Scheme work in practice?

The Golden Share scheme works by applying a discounted purchase price combined with legal resale controls.

A typical structure looks like this:

• The property is sold at approximately 80% of market value
• The buyer pays a lower deposit and mortgage based on this reduced price
• The buyer owns the home outright (100% ownership)
• Legal conditions are attached to the property title
• Future resale is restricted to maintain affordability

For example:

• A home valued at £350,000 on the open market
• Would be sold for around £280,000 under the scheme

This makes the initial cost significantly more manageable for eligible buyers. However, the key condition is that the discount is not simply a one-time benefit, it is designed to be preserved when the property is sold again.

Who is eligible for Golden Share housing in Edinburgh?

Eligibility criteria are set to ensure the scheme benefits those most in need of affordable housing. While exact rules can vary slightly depending on the development and council guidance, common requirements include:

• Being a first-time buyer or currently in housing need
• Having a strong local connection to Edinburgh
• Being unable to afford the property at full market value
• Meeting minimum income thresholds for mortgage approval
• Securing a mortgage agreement in principle

Golden Share is about need and affordability, not strictly first time buyer status

Applicants may also need to demonstrate that they:

• Do not already own another property
• Are not in a position to purchase suitable housing on the open market

Because demand is often high, eligibility alone does not guarantee access. Properties are usually allocated on a priority basis.

How much cheaper are Golden Share homes?

Most Golden Share homes are priced at around 80% of their market value, though the exact percentage can vary depending on the development agreement.

This discount affects affordability in several ways:

Lower deposit requirements: A lower purchase price means buyers need a smaller upfront deposit.

Reduced mortgage borrowing: Because the loan is based on a lower value, monthly payments are more manageable.

Improved access to lending: Some buyers who might not qualify for a full price mortgage may be able to borrow under the scheme.

Do you fully own a Golden Share property?

Yes. One of the most important features of the scheme is that buyers receive full legal ownership of the property.

This means the owner is responsible for:

• Mortgage payments
• Maintenance and repairs
• Insurance

There is no landlord and no rent is paid.

However, ownership comes with restrictions on resale value and eligibility for future buyers. These conditions are embedded in the property’s legal title and are designed to ensure the home remains affordable over time.

What happens when you sell a Golden Share home?

When a Golden Share property is sold, the affordability rules remain in place.

Typically:

• The resale price is capped based on the original discount
• The buyer must meet eligibility criteria similar to the first purchaser
• The home must remain within the affordable housing framework

This means the property does not simply increase in value in line with the wider housing market. Instead, its value is controlled to maintain affordability. This ensures the affordability benefit is preserved for future generations of buyers.

How does Golden Share fit into Edinburgh's housing strategy?

Golden Share homes are part of a wider affordable housing system in Edinburgh, which includes:

• Shared equity schemes
• Mid market rent housing
• Council and housing association homes
• Developer led affordable housing units

Local planning policy requires private developers to include a percentage of affordable homes in new developments. Golden Share is one mechanism used to meet these obligations.

How is Golden Share different from Shared Equity?

What are the Pros of the Golden Share Housing Scheme?

• Lower purchase price
• Full ownership from the start
• Access to higher demand locations
• Long term affordability is protected
• Straight forward ownership structure

and what are the Cons of the Golden Share Housing Scheme?

• Limited financial gain when selling
• Restrictions on who you can sell to
• Less flexibility overall
• Strict eligibility criteria
• Limited availability

Do any new build developments offer Golden Share properties?

Yes, Tower Street at Merchant Quay by Barratt Homes offer select Golden Share apartments.

This development is a modern residential scheme located in the Leith waterfront area, a popular regeneration zone just a short distance from Edinburgh city centre. It forms part of a wider masterplan to create high quality urban housing with a mix of private and affordable homes, helping to support demand in one of the city’s fastest growing neighbourhoods.

Tower Street at Merchant Quay offers a range of 1, 2 and 3 bedroom apartments. Designed with contemporary layouts, energy efficient features and access to strong transport links including nearby bus and tram routes connecting directly into the city centre and beyond.

The development is positioned close to key local amenities such as shops, parks, cafés and the Shore area of Leith, making it attractive for both professionals and first time buyers.

Check if you are eligible for a Golden Share apartment at Tower Street here.