Posted 11.08.15
Communities Secretary Greg Clark gave a boost to the Government's starter homes initiative by launching a £26 million fund for housebuilders to demonstrate a range of high quality homes that will be available for first-time buyers.
These will pave the way for the first wave of starter homes and show aspiring young homeowners the different types of properties they can come to expect from the scheme.
The fund will support architects, developers, councils, housing associations and small builders to build properties that will increase the quality of design, as the Government pursues its pledge to build 200,000 starter homes by 2020.
It will be used to acquire brownfield sites to provide land for starter homes. Money from the sales of these sites will go back to the government - securing good value for the taxpayer.
In a further move to support aspiring homeowners, the Government has also made available up to £10 million for local authorities to prepare more brownfield land for development of starter homes.
Key Facts
Starter homes will be offered exclusively to first-time buyers aged under 40 with a discount of 20% on market values.
The £26 million fund will be used to identify and purchase sites and prepare them in 2015 to 2016. This will enable more of the properties to be started in 2016 to 2017 and 2017 to 2018. The majority of the sites will be underused brownfield land, currently not allocated for housing.
The up to £10 million grant funding will be open to councils to assist them in bringing forward brownfield sites that are currently underused or vacant. It will help them carry out preparation, clearance and infrastructure work to make them viable for starter homes.
These are one-off funds designed to accelerate provision of starter homes.
Comment
Kathleen Kelly, Assistant Director of Policy and Research at the National Housing Federation said:
"We welcome Greg Clark's announcement that will help more people achieve their aspiration of home ownership.
"Housing associations are poised to work in partnership with government to end the housing crisis, build high quality well designed homes and give more people a leg up onto the housing ladder. It is great news that more land will be brought forward to make way for these new homes.
"This is a step in the right direction to help housing associations achieve their long-term ambitions to build 120,000 homes every year."
