A trial scheme to offer first-time buyers on low incomes shared property ownership will be expanded to cover all of Scotland, the First Minister has announced.

The Scottish Government believes the measure will help provide affordable housing for vulnerable families, while also stimulating the economy by encouraging property sales at a time when housing market activity has crashed.

The Open Market Shared Equity Pilot – which offers Government funding for up to 40 per cent of the value of a home – was previously scheduled to cover l0 local authorities. It will now apply to all 32 authorities, with its £24 million budget for 2008/09 being expanded to £60 million for 2009/10.

"I am announcing an extension to the Open Market Shared Equity Pilot to offer first-time buyers across Scotland the opportunity to own a home on a more affordable basis, only paying for part of it. The £60 million will enable Government to fund the remainder as an interest-free equity stake," Alex Salmond said.

"In these difficult economic times, we are doing all we can to help families, households and businesses. Providing more access to affordable housing and greater support to first-time buyers will also help stimulate our housing market."

The Scottish Government predicts that the move will help up to 1,500 families on low incomes who are looking to buy their first home.

Salmond also stressed that his Government will continue to press Westminster for £1 billion in funding that Scotland is "due" from the Treasury, which the SNP has pledged to invest in reflationary measures north of the border.