Government plans to make 1 in every 5 homes a Starter Home

Under new Government proposals, housing developers that embark upon projects of 10 or more houses are required to make 1 in every 5 a Starter Home

The project will aid in the construction of 200,000 new homes for first-time buyers as part of the government’s pledge to build more than one million homes by 2020.

The Starter Homes will be available at a minimum of 20% below market value. House prices for these properties will be capped at £450,000 in London and £250,000 in areas outside of the capital, helping Starter Homes to be genuinely affordable for those on moderate incomes.

The plan, outlined by housing minister Brandon Lewis yesterday, aims to make at least 20 per cent of all new homes constructed available to people under 40 years of age looking to buy their first house. He said: “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.”

As part of the proposal, Mr. Lewis also stipulated that the new Starter Homes would also be available for injured military personnel and the partners of servicemen who have lost their lives, regardless of age, saying: “It’s absolutely right that we provide help and a home for our heroes. We’re proposing that starter homes should be available to injured soldiers and partners of those who have made the ultimate sacrifice for our country.”

Mr. Lewis’ plan is backed by a £2.3bn funding package set aside to begin 60,000 Starter Home builds, including £1.2bn for brownfield development.

Other measures proposed include:

  • The resale of Starter Homes will be limited to other first-time buyers at a discount, for five to eight years. Meaning the homes will benefit genuine first time buyers.
  • Restrictions on sub-letting so that the homes don’t just become buy-to-let opportunities.
  • Allowing joint purchases in cases where one partner is aged over 40 and one below to be eligible for a Starter Home.

Mr. Lewis said: “We want to ensure young people who aspire to own their own home can settle down and enjoy the security homeownership brings.”

A consultation on the policy will now be launched, with local authorities invited to submit expressions of interest by 13 May.