The House of Commons has produced a research briefing on
the government's Starter Homes scheme. The scheme was launched
in February 2015 and is aimed exclusively at first-time buyers
under 40 years of age.
Read the Starter Homes for young first-time
buyers briefing paper.
The briefing covers the scheme's background as well as the
consultation process it undertook in December 2014 along with the
government's response. Finally, it provides a summary of progress
on the scheme to date prior to publication of the Housing and
Planning Bill 2015.
In December 2014,PM David Cameron announced a new scheme
aimed at providing affordable Starter Homes, exclusively to
first-time buyers under 40 as part of the government's strategy to
increase home ownership across the country. The scheme was launched
in February 2015 with purchase and preparation of the first sites
planned to begin in the same year.
Starter Homes are exclusively available to young first-time
buyers, who benefit from a 20% reduction on market value; with
properties set to cost no more than £250,000 outside of London and
£450,000 within London. The 20% reduction is to be retained for
five years following the initial sale, after which the property
will be sellable at full market rate.
Starter Homes are to be built on brownfield ex-commercial or
industrial land (although other brownfield sites will also be
considered); with developers not required to make section 106 or
Community Infrastructure Levy contributions on sites provisioned
for the scheme. No Green Belt land is to be built on.
In order to increase the viability of the scheme, a small
proportion of market value homes are also to be built on Starter
Home sites, with the hope that this will also promote mixed
communities in keeping with the guidance found in the National
Planning Policy Framework.
Following an announcement from George Osbourne that the scheme
was to be rolled out to rural exception sites (where homes retain
their discounts in perpetuity against the Starter Homes' five
years); concerns were raised that the policy might affect rural
people's ability to afford to buy in their local areas and could
effectively result in commuters outbidding local people for
Read the Starter Homes for young first-time buyers
NB: Since this report was published the Prime Minister made an
announcement at the Conservative Party Conference that the
government plan to allow developers the right to build Starter
Homes for owner-occupation instead of affordable housing for rent
in fulfilling S106 planning requirements on private sites and the
government have published the Housing and Planning Bill 2015.