A £150m pilot scheme is to be launched by the Scottish government, where first-time buyers who can fund at least 5% of the purchase price can borrow up to £25,000 to top up their deposit.

The loan will be secured on the equity of the property. It can be repaid in full at any time and must be repaid when the home is sold.

There will be no monthly payments, and no restrictions on the property type or its value.

The scheme, which will launch later this year and run until the end of the current parliament in 2021, will be open to couples even where one of the partners has previously been a home owner.

First Minister Nicola Sturgeon announced the scheme at the SNP conference in Edinburgh.

She also announced a consultation to enable local authorities to tackle excess short-term lets, such as Airbnb in Edinburgh.

Sturgeon said: “For many people, short-term lets have enabled cheaper, more flexible travel.

“It’s one of the reasons Scotland’s tourism industry is booming.

But for others – particularly in tourist hot spots – it is making it harder to find homes to live in.

“We are asking for views on a new system of regulation to make short-term lets subject to the same controls as other accommodation. And give councils the power to control the number of lets and ensure they make a contribution to the services they use.”