The Prime Minister’s announcement last December that first time buyers will be eligible for a 20% discount on new homes is still under consultation while the exact details of the scheme are worked out. The Government has confirmed that the initiative will be open to first time buyers who are under 40 years of age and that the new homes will be built over the next five years. Under the proposals starter homes are to be built on under-used or unviable brownfield sites that are not currently identified for housing on public and private land. Developers and councils are being asked to ensure the changes will unlock a variety of sites across the country. The plans are expected to include a clause about the re-sale of the properties in order to stop buyers making a ‘windfall profit’.
This may mean that buyers who take advantage of the scheme could be prevented from selling their home for between five and fifteen years. This change to the planning system will free builders from costs incurred under Section 106 affordable housing contributions and tariffs, allowing the savings to be passed onto home buyers. Leading house builders and councils across the country have pledged their support for this initiative.
Prime Minister David Cameron said ‘hardworking young people want to plan for the future and enjoy the security of their own home…. this is all part of our long term economic plan to secure a better future for Britain and making sure that we are backing those who work hard and get on in life.’ As this has been included in the Conservative Party’s manifesto for the forthcoming election, we can anticipate that this will be a scheme they continue to encourage. The Chairman of the Home Builders Federation, Stewart Baseley, said that the industry is keen to work with government to develop policies that will allow for more high quality homes to be built in the right places.
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