The government has announced plans to build 200,000 starter homes for first time buyers under the age of 40.
It’s part of an overall plan to build a million homes by 2020. Ministers say the figure will be achieved by ensuring that 1 in 5 homes are starter homes on developments of more than 10 properties.
The starter homes will be available at a minimum 20% discount below market value, making them affordable for those on moderate incomes.
Injured soldiers and partners of those who lost their lives in service will be eligible for a starter home at any age under the proposals, which are now subject to public consultation.
Housing and Planning Minister Brandon Lewis said: “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. Starter homes will be built on hundreds of housebuilding sites across the country.”
Other measures 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 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.
We shall keep clients informed of developments.
Please contact us if you would like more information about the issues raised in this article or any aspect of buying and selling a home on residentialproperty@berrysmith.com or 029 20 34 55 11.