Proposed starter homes initiative puts spring in first-time buyers’ step
Those looking to take their first steps onto the property ladder will be delighted to know that the government has started consulting on its new Starter Homes initiative that will see 200,000 new homes built specifically for first time buyers under 40 years old.
As part of the government’s pledge to build more than one million new homes by 2020, they are currently in talks about establishing an initiative that would see one in every five new homes built as a Starter Home, with 20 per cent taken off the market price. These will be built with the aim of helping more people realise their ambition of owning a home and getting Britain’s building!
With new homes continuing to remain in high demand and average houses prices for first-time buyers in England standing at around £218,000, being able to save on average £43,000 could be great news for young people looking to buy their first home.
In order to ensure these homes continue to benefit first time buyers for years to come, the government’s plans for these homes would mean they can only be resold to another first-time buyer, at a discount, for five to eight years after the original purchase. Further restrictions on the scheme mean these homes cannot be sub-let to ensure they are not viewed as a buy-to-let opportunity.
The initiative would not only benefit the younger generation. Under the new scheme, injured military personnel and partners of those who lost their lives in service would also be eligible for a Starter Home, regardless of their age.
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.