New Initiative to Support First-Time Buyers
Details of a new scheme which will offer help for first-time buyers have been released. The government initiative will provide a number of homes at a discounted rate, enabling young buyers to get their first step on the property ladder.
This initiative will enable those under 40 who are buying their first home to receive at least a 20% discount on some new properties. The Starter Home Initiative will initially fund 100,000 homes across the country, which will be available at a discount to eligible buyers. This will offer more people the chance to own their own home, maybe with an external spiral staircase.
Even though the housing market is in a recovery phase, we are still about 50% down on the number of new homes we require each year. This figure has been established to reduce the effect of price increases and to ensure there are sufficient numbers of homes for first-time buyers.
The homes that will be built as part of this new scheme will be funded through alterations to the planning process and a decrease in affordable-housing requirements. They will be constructed on brownfield and under-used sites.
Developers will not have any of the requirements to fund affordable homes or provide facilities for the community, which can add additional costs to the price of a new home. The affordable-housing criteria can increase the cost of each home by £15,000. This is on top of £6,000 to fund community infrastructure projects. Without these restrictions, developers can make the homes available for less.
Consultation Process Under Way
Further details of this initiative will be released next year, when buyers will also be able to register their interest in the scheme. It is currently going through the consultation process, which will finalise many of the finer points. It will determine the length of time before the property can be resold for its market value. This is expected to be around five to fifteen years.
These new homes will be constructed in addition to housing schemes that are already planned. They are set to be built on sites that have not been secured and are in areas that developers might not have ordinarily considered.
The scheme has already received a great deal of support, especially from major developers and local councils. This will be backed up by a team of architects and designers, who will ensure that all the properties constructed as part of this initiative are well built and of a high quality. There will be a range of different types of properties, some with families in mind or with an external spiral staircase.
The launch of the Starter Home Initiative is a further step in tackling the housing shortage in Britain. This will enable more people to get a foot on the housing ladder. As more buyers enter at the bottom of the market, it will provide a boost to the rest of the market and enable more homeowners to move up.