DCLG and Prime Minister's Office
2 March 2015
Reform of planning policy to enable starter homes to be built on
under-used or unviable commercial or industrial sites not currently
identified for housing, whether privately or publicly owned.
Developers will be exempted from section 106 affordable housing and
tariff-style contributions, and from Community Infrastructure Levy
(CIL) provided homes are sold to first-time-buyers under 40 at a
minimum discount of 20% below market value.
Homes resold or let within 5 years will also have to be offered at
20% below market value.
Revised planning guidance will be published shortly; the Government
will seek reform of CIL regulations in the next Parliament.
In December 2015, DCLG consulted on a scheme to provide
discounted starter homes on unusable or surplus commercial and
industrial land. At that time the Government estimated that
100,000 starter homes could be provided under this
On 2 March, Housing Minister Brandon Lewis announced the outcome of
the consultation and confirmed the Government's intention to
proceed with the scheme. On the same day, the Prime Minister
made a speech increasing the estimate of the number of homes that
could be provided under these arrangements to 200,000 by
2020. The Government has also issued a press release
announcing that aspiring homes owners may register their interest
in buying a discounted starter home on a new website.
The number of homes provided under this scheme will depend on
the number of sites that meet the criteria stipulated in the policy
and where the cost of development enables constructed dwellings to
be offered at the required discount. The estimate that 200,000
homes can be provided under this scheme is, at this stage, largely
Councils will have the discretion to allow a small proportion of
homes to be offered at market value to make schemes viable.
The Government's presumption, however, seems to be that on these
sites, homes for discounted purchase will replace other types of
affordable housing, such as shared ownership or homes for
affordable or social rent.
Link to consultation paper
Link to Ministerial statement
Link to press release