First wave of starter houses will be built this year for first-time buyers as government plans 400,000 new homes
They will be sold to first-time buyers aged between 23 and 40
THE first wave of discounted starter homes for young first-time buyers will be built this year, ministers will announce today.
The foundations for thousands of houses will be dug in brownfield sites in 30 local authority areas across England.
But they will only be sold to first-time buyers aged between 23 and 40 with an asking price of at least 20% below market value.
The cost of the homes will be capped at £450,000 in London and £250,000 outside.
Housing Minister Gavin Barwell said the project was part of the Government’s pledge to build 400,000 new affordable homes.
He said: “This Government is committed to building starter homes to help young first-time buyers get on the housing ladder.
“This first wave of partnerships shows the strong local interest to build thousands of starter homes on hundreds of brownfield sites in the coming years.
“One in three councils has expressed an interest to work with us so far.”
But Labour’s Shadow Housing Secretary John Healey cast doubt on when the homes would be available for buyers.
He said: “Ministers launched them in 2014 but will only start to build the first in 2017, promised they’d be affordable for young people when they’ll cost up to £450,000, and pledged to build 200,000 by 2020 but no-one now believes that’s possible.”
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Shelter’s Roger Harding added: “Efforts to build more homes are welcome but these starter homes are only likely to benefit people who are better off and already close to buying.
“Sadly they will do little to help the many millions of people on middle and low incomes who need somewhere genuinely affordable to buy or rent long term.”
David Cameron promised to build 200,000 starter homes by 2020 but it is unclear exactly how many will be built in the coming year.
There have been suggestions that Prime Minister Theresa May may seek to refocus the project, with a potential shift towards more rental homes.
LGA housing spokesman Martin Tett said: “It is good that the Government is working closely with councils to build more homes, alongside the infrastructure needed to support strong communities.
“Ultimately, local areas will need discretion on the number of starter homes required in new developments.
“This will allow councils to ensure a mix of homes - to rent and buy - are built, which are affordable for those people that need them and that are crucial for enabling people to save money towards a deposit.”