Starter Homes Consultation
The Government has announced further details of its plan for Starter Homes.
It is proposed that:
- Starter Homes should be provided on residential sites providing 10 or more units.
- 20% of all units to be provided on such sites should be Starter Homes.
- Starter Homes are to be available at a minimum 20% discount below market value, and only to people under 40 years old.
- Injured soldiers and partners of those losing their life in service would be eligible to the discount at any age.
As with existing affordable housing contributions, in certain circumstances, developers may be allowed to provide financial contributions instead of onsite homes to build starter homes elsewhere.
Controls have been proposed to try to avoid abuse of the Starter Home Initiative. For example, it is proposed that for five to eight years after purchase, Starter Homes can only be resold to other first time buyers, at a discount. Restrictions are also to be imposed on sub-letting so that Starter Homes do not become buy-to-let opportunities.
The plans are still at consultation stage at present and the Government is inviting comments until 18 May 2016.
If you would like to discuss this further or require more information, please contact Jonathan Buckwell or call 01622 776226.