First-time buyers in Scotland now have until 5 February to take advantage of the initiative, which was originally due to run until March 2022.
It comes after the Scottish government’s Affordable Housing Supply Programme had its spending cut by 16 per cent in the Scottish Budget.
Ministers said both changes were a result of a 66 per cent cut in the government’s budget for financial transactions which is set by the UK government.
Scottish housing minister Kevin Stewart said: “As highlighted in the Scottish budget, as a direct result of the UK Government’s Spending Review there has been a 66 per cent cut to the Scottish Government Financial Transactions – allocations we receive from the UK Government – with amounts to a reduction of £412m.
“This means we have had to make difficult choices in how we best use these limited resources to support our shared equity schemes.
“We have protected support for the SME housebuilding sector through retaining the Help to Buy smaller developers scheme with a budget of £14m.
“However, we are unfortunately unable to continue with the main Help to Buy scheme, and it will close to 2021/22 applications on Friday, February 5.”