Are starter homes really providing a good foundation for the future?

The government has announced that thousands of new starter homes have been proposed to be built in the UK on current brownfield sites. 

The aim is to try and help more people afford to buy a house, as well as creating regeneration for town centres which seem to be a slow and dying breed. However, this all comes with many challenges of its own, as local councils and charities are concerned that starter homes are still out of reach for the majority of young people who are trying to get on the housing ladder.

In 2014, the coalition government brought in The Starter Homes Land Fund at the cost of £1.2 billion in order to try and sort out the UK’s current housing crisis.

Starter homes are only available to buyers aged between 23 and 40, and those set to be built are supposed to sell at 20% less than their valued market price. The issue with this is that young people are still expected to come up with a deposit, something that is near impossible when they’re already having to struggle with the high prices of renting, as well as day to day living costs.

According to the Chief Executive of the Federation of Master Builders (FMB), Brian Berry, “It’s great to see the Housing Minister kick off 2017 by giving the green light to the first Starter Homes. These homes will help some first time buyers get a foot on the housing ladder, and our small house builders are enthusiastic about delivering on that vision”.

However, he also stated, “starter homes will not be a panacea. A wider set of measures aimed at increasing the capacity of the house building industry are needed to overturn the long-term under-supply of new homes. Central to this must be getting small and medium-sized (SME) builders delivering more new homes”.

These developments could create up to 48,000 new homes. For better or for worse, the government seem set to prove that 2017 will be the year where things are turned around for the better in terms of housing.