Government plans to build 100,000 discounted starter homes
16/12/2014
The Government is planning to build 100,000 new, discounted homes for first time buyers over the next five years.
The “starter homes” will be available to any first time buyers under the age of 40 years, and will cost at least 20% below market value. Buyers will be prevented from selling their homes for a set number of years after their purchase.
As well as helping first time buyers move onto the property ladder, the initiative also seeks to boost new-build construction by reforming planning rules and allowing housing construction to take place on land that is currently allocated, under the existing planning framework, for industrial and commercial use.
A charge which developers usually have to pay, that is designed to help pay for infrastructure needed to support new developments in local areas, will be waivered for all developers in this scheme.
Secretary of state for communities and local government Eric Pickles said:
“Our ambition is for 100,000 new starter homes to be built across England through this initiative over the next five years.
“We want to work with developers, local authorities, and land owners to ensure the first starter homes are delivered quickly and to a high quality that meets the aspirations of today’s first-time buyers.”
Council of Mortgage Lenders director-general Paul Smee said:
“Mortgage lenders support measures that deliver affordable ways for people to access home-ownership. This new scheme should provide a modest additional flow of lower-cost housing for first-time buyers, which we welcome.
“Lenders will need to consider whether there are any specific lending risks involved, and we will respond to the consultation to help ensure that the scheme is practical and workable from a lending perspective. Once it is up and running, we will help signpost first-time buyers to government website information about the scheme.”
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