The move will support 200,000 new homes for first time buyers under 40 as part of the government’s pledge to build 1 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.
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 include:
- 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.
The move will help this group who may otherwise face issues accessing the starter homes scheme.
The consultation runs until 18 May 2016 and seeks views on the details for the regulations to be made under powers contained in the Housing and Planning Bill.
Details of the £1.2bn land fund are set out in the Starter homes: unlocking the land fund prospectus.
Local authorities are invited to submit initial expressions of interest by 13 May.
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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.
“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.”
Mr Lewis also said:
“It’s absolutely right that we provide help and homes for our heroes, that is why 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.”