Housing sites of 10 homes or more will need to make 1 house in 5 a starter home under new plans published by the government.
The changes will aim to support 200,000 new homes for first-time buyers under 40 as part of plans to build 1 million new homes – offering affordable sale, rental and private purchases.
Starter homes will be offered at 20% below market value, helping buyers to purchase affordable housing on moderate incomes.
Other measures include:
- starter homes can only be resold to other first time buyers, at a discount for 5 to 8 years after purchase
- starter homes will be prevented from becoming buy-to-let opportunities
- joint purchasers will be eligible for a starter home when one partner is above 40 and the other is below.
The new plan is the latest government measure aimed at people under 40 who are looking to purchase their first home. Budget 2016 saw a new lifetime ISA announced for adults to help them save towards their first home.
From April 2017 adults under 40 will be able to save up to £4,000 each year while receiving a 25% government bonus up to £1000.The ISA limit will also increase from £15,240 to £20,000 a year.
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.”