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.
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