Property

Gov: 20% of new homes to be starter homes

|
29th March 2016
""

Under new government proposals published today, new housing development sites that have 10 or more properties on them will have to make 1 in 5 of those properties a starter home.

Under the new scheme, starter homes will be available at a minimum 20% discount below market value first time buyers under 40 as part of the government’s pledge to build 1 million new homes, including affordable housing for sale, rental and private purchase.

Housing and Planning Minister Brandon Lewis said: "We want to ensure young people who aspire to own their own home can settle down and enjoy the security home ownership brings. This is why we have committed to building 200,000 high quality homes exclusively for first time buyers backed by £2.3 billion government funding to get building underway including on brownfield sites.

Today’s proposals mean starter homes will be built on hundreds of housebuilding sites across the country, encouraging private and affordable housing is built side by side in mixed communities.

The government’s starter homes support package is £2.3bn for a first wave up to 60,000 starter homes, including £1.2bn for brownfield land housebuilding.

Other measures proposed in the consultation include:

- starter homes can only be resold to other first time buyers, at a discount, for 5 to 8 years after purchase; this is to ensure the homes benefit genuine first time buyers and to discourage speculative buying

- restrictions also on sub-letting so starter homes are not buy-to-let opportunities

- allowing joint purchasers where one partner is above 40 and one below to be eligible for a starter home

Also under the proposals injured military personnel and partners of those who lost their lives in service would be eligible for a starter home at any age, rather than see a cut off at age 40.

The move will help this group who may otherwise face issues accessing the starter homes scheme.

Brandon Lewis said: "It’s absolutely right that we provide help and homes for our heroes, that is why we’re proposing that starter homes should be available to injured soldiers and partners of those who have made the ultimate sacrifice for our country."

Related articles
More from Property
Latest from Financial Reporter
Latest from Commercial Reporter