Government starter home pledge

One in five new homes to be a starter home

The Government has announced new proposals, which will help support its pledge to build one million new homes as well as first time buyers.

New developments, which have ten or more homes must ensure one that one five is a starter home, providing 200,000 new homes for first time buyers under 40 (and joint purchases were one partner is below 40).

This is a major step towards the Government realising its one million homes promise, including affordable housing for sale, rental and private purchase. The starter home support package comprises some £2.3Bn for the first wave of 60,000 starter homes, including £1.2Bn for house building on brownfield land.

The starter homes will be available at a minimum 20% discount below market value, making them genuinely affordable to those on moderate incomes.

Ensuring the homes benefit from genuine first time buyers, the homes can only be resold with a discount to other first time buyers five-to-eight years after purchase. There will also be restrictions on sub-letting the starter homes so they are not bought on a buy-to-let basis.

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 £2.3Bn 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 proposals would also see injured military personnel and partners of those who lost their lives in service 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.”

The consultation runs until 18 May 2016 and seeks views on the details for the regulations to be made under powers contained in the Housing and Planning Bill.

 

The post Government starter home pledge appeared first on UK Construction Online.