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Government announces plans for one in five homes to be a starter home
The Department for Communities and Local Government has declared a new move to support 200,000 new homes for first time buyers under 40, as part of a pledge to build one million homes.
The plans will mean housing sites of 10 homes or more will have to ensure one home in five is a starter home in order to help more people become home owners. Starter homes will be available at a minimum 20 per cent discount below market value allowing starter homes to be more accessible to those on moderate incomes.
Other measures proposed in the consultation include: starter homes can only be resold to other first time buyers, at a discount, for five to eight years after purchase; this is to ensure the homes benefit genuine first time buyers and to discourage speculative buying; restrictions also on sub-letting so starter homes are not buy-to-let opportunities; and allowing joint purchasers where one partner is above 40 and one below to be eligible for a starter home.
Brandon Lewis, Housing and Planning Minister, said: “We want to ensure young people who aspire to own their own home can settle down and enjoy the security home ownership brings. This is why 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.
“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.”
The government’s £2.3 billion starter homes support package will fund a wave of up to 60,000 starter homes, including £1.2 billion for brownfield land housebuilding.
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