Plans have been proposed to ensure 1 in 5 new homes will be starter homes for first time buyers. This is part of the government’s pledge to build 1 million new homes.
Originally proposed in the Starter Homes Regulations, a technical consultation, this will apply to 1 in 5 homes on sites of 10 or more houses. These houses will have a price cap of £450,000 for Central London and £250,000 elsewhere, with availability exclusive only to first time buyers under 40.
These regulations that are set to be introduced in the Housing and Planning Bill, which will also contain the following proposed measures: Legislation to ensure that these properties can only be resold to other first time buyers, 5 to 8 years after purchase, at a discount: Restrictions on renting these properties to prevent buy to let: Allowing joint purchase when one partner is below the age of 40.
These plans have been drawn up with the intention of helping first time buyers get onto the property ladder and to reduce the stranglehold which is currently on the market; there are too many people looking to buy with far too little stock available, creating a highly competitive market.
Brandon Lewis, the Housing and Planning Minister, said “We want to ensure young people who aspire to own their own home can settle down and enjoy the security homeownership 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.”