The move will support 200,000 new homes for first time buyers under 40 as part of the government’s pledge to build one million new homes, including affordable housing for sale, rental and private purchase.
Starter homes will be available at a minimum 20% discount below market value, helping starter homes to be genuinely affordable for those on moderate incomes.
Housing and Planning Minister Brandon Lewis said: “We want to ensure young people who aspire to own their own home can settle down and enjoy the security home ownership brings.
“Today’s proposals mean starter homes will be built on hundreds of house building sites across the country, encouraging private and affordable housing is built side by side in mixed communities.”
The government’s starter homes support package is £2.3bn for a first wave up to 60,000 starter homes, including £1.2bn for brownfield land housebuilding.
Other measures proposed in the consultation
- starter homes can only be resold to other first time buyers, at a discount, for 5 to 8 years after purchase; this is to ensure the homes benefit genuine first time buyers and to discourage speculative buyin
- restrictions also on sub-letting so starter homes are not buy-to-let opportunities
- allowing joint purchasers where one partner is above 40 and one below to be eligible for a starter home
Also under the proposals injured military personnel and partners of those who lost their lives in service would be eligible for a starter home at any age, rather than see a cut off at age 40.
