The new First Homes Fund, which will be available from June, applies to properties valued at up to £300,000 and is designed to help more buyers onto the property ladder.

Claire Bathgate, head of sales for Dandara Scotland, which has developments in Aberdeen and East Lothian, said: “Anything that helps first-time buyers in Scotland is hugely positive news. Without them, the entire housing market slows down. Amid the ongoing cost-of-living pressures, many first-time buyers tell us it feels harder than ever to save for a deposit and owning a home can seem like an impossible dream.

“We hope the scheme is distributed fairly and in well-spaced tranches. With previous Scottish Government initiatives, much of the funding appeared to be allocated very quickly after launch. As a result, it often benefited buyers who were already close to purchasing homes and able to move fast, rather than bringing much-needed new buyers into the market.

“What we would really like to see is an exemption for first-time buyers from paying LBTT on all properties, as that would make a really significant difference.”

Craig Fairfoull, group director at Dundas Estates, said: “This is extremely positive news for first-time buyers in Scotland. It’s particularly encouraging that the scheme supports both new-build and existing properties, while allowing buyers to repay the interest-free loan only when the home is sold.

“The announcement couldn’t have come at a better time. Following last week’s news of rising fuel bills, many households are facing growing affordability pressures, so measures like this will provide much-needed support and reassurance for aspiring homeowners.

“Coupled with reports that some of the UK’s biggest lenders are cutting mortgage rates, the outlook for the Scottish property market is becoming much more encouraging.”

Jamie Thomson, commercial director of Lochay Homes Limited, added: “Supporting first-time buyers in Scotland is vitally important. The average first-time buyer in Scotland is now aged between 30 and 32, and many already have families. They are desperate to secure a stable future, move out of rental accommodation and into a home of their own.

“While this new scheme will undoubtedly help buyers, there are questions over whether it goes far enough. A previous Scottish Government scheme offered a more generous £25,000 equity loan and, with the average first-time buyer deposit in Scotland now exceeding £43,000, affordability will remain a major challenge for many aspiring homeowners.”