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Government launches consultation on plans for building starter homes (4 April 2016)

Date: 04/04/2016
Duncan Lewis, Legal News Solicitors, Government launches consultation on plans for building starter homes

The government has announced new plans for every one in five new homes built to be a starter home to boost affordable housing in the UK.

Under the proposal, housing sites of ten or more homes will have to make one in five homes a starter home – the move will support 200,000 new homes for first-time buyers under the age of 40, as part of the government’s pledge to build one million new homes, including affordable housing for sale, rental and private purchase.

Starter homes will be available at a minimum 20% discount below market value, so that they will be “genuinely affordable” for those on moderate incomes.

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.”

The proposals mean starter homes will be built on hundreds of sites across the country, with more private and affordable housing side-by-side in mixed communities.

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

Other measures proposed in the consultation include starter homes only being resold to other first-time buyers at a discount for five to eight years after purchase – this would ensure the homes benefit genuine first-time buyers and to discourage speculative buying, says the government consultation.

There will also be restrictions on sub-letting, so starter homes are not buy-to-let opportunities.

The proposals also allow joint purchasers where one partner is above the age of 40 and one below to buy a starter home – and injured military personnel and partners of those who lost their lives in service would also be eligible for a starter home at any age, rather than see a cut off at the age of 40.

The Housing Minister added:

“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.

Local authorities are invited to submit initial expressions of interest by 13 May.


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