Under plans confirmed today, developers will need to make one home in five a Starter Home as part of government efforts to boost property ownership. Starter Homes are set to be sold at 20% below market rates and will be counted towards affordable home quotas under of revised section 106 deals with local authorities.
Setting out further details, Lewis said 200,000 could be built for first-time buyers aged under 40 by the end of the Parliament.
“We want to ensure young people who aspire to own their own home can settle down and enjoy the security home ownership brings,” he said.
“This is why we have committed to building 200,000 high quality homes exclusively for first time buyers backed by £2.3bn government funding to get building underway including on brownfield sites.”
Lewis has also confirmed rules for the re-sale of Starter Homes. Owners will only be able to sell to other first-time buyers, at a discount, for up to eight years after purchase. There will also be restrictions on sub-letting so Starter Homes are not buy-to-let opportunities. Joint purchases will be allowed where one partner is aged over 40.
The details come after Local Government Association warnings that the homes will be out of reach for those most in need of affordable homes in two-thirds of council areas.
