The Prime Minister will today (15 December 2014) launch a new scheme that will offer 100,000 first-time buyers new homes with a 20% discount, as part of a major push to help people onto the housing ladder.
Aspiring home owners will be asked to register their interest in buying via the Starter Home initiative from the start of next year – at least 6 months earlier than planned. And many of the country’s leading house builders and councils are already looking at sites that could be used for new homes.
The government is today setting out how the scheme will work with a change to the planning system to free under-used or unviable brownfield land from planning costs and levies in return for a below market value sale price on the homes built on the site.
Developers and councils are being asked to respond to the proposals to ensure the changes will unlock a range of sites across the country.
100,000 homes will be available to first time buyers under 40 as part of the Starter Homes initiative – and work on the first raft will start next year.
Helping more people realise their dreams of home ownership and getting Britain building is a vital part of the government’s long-term economic plan to secure a better future for Britain and give hardworking people economic security.
The measures announced by the Prime Minister today include:
Innovative planning changes – to bring new homes onto the market at a minimum 20% discount
At the heart of the Starter Homes initiative is a change to the planning system. This will allow house builders to develop under-used or unviable brownfield land and free them from planning costs and levies. In return, they will be able to offer homes at a minimum 20% discount exclusively to first time buyers, under the age of forty. Currently, builders can face an average bill of £15,000 per home in Section 106 affordable housing contributions and tariffs, often adding tens of thousands to the cost of a site. Under the proposals, developers offering Starter Homes would be exempt from those Section 106 charges and Community Infrastructure Levy charges. The homes could then not be re-sold at market value for a fixed period – making sure that the savings are passed onto homebuyers.
Backing of country’s leading house builders and councils
Already leading house builders, including 3 of the nation’s largest and councils from up and down the country have pledged their support for the initiative, which will bring much needed homes onto sites that have previously been deemed unviable and are lying unused. More than 30 house builders have said that that they support the plans and would consider bringing forward land to develop the new, discounted houses, from next year.
High quality design
A new design panel, including world famous architects such as Sir Terry Farrell and Sir Quinlan Terry will be established to ensure that new homes are not only lower cost but also high quality and well-designed, giving hardworking house buyers attractive homes that meet the demands of modern life. The panel, announced by the Prime Minister today, will work with government to set the bar on housing design across the country.
Prime Minister David Cameron said:
Hardworking young people want to plan for the future and enjoy the security of being able to own their own home. I want to help them do just that.
Under this scheme, first-time buyers will be offered the chance of a 20% discount, unlocking home ownership for a generation.
This is all part of our long-term economic plan to secure a better future for Britain, making sure we are backing those who work hard and get on in life.
Stewart Baseley, executive chairman of the Home Builders Federation said:
Increasing housing supply is a huge and complex challenge and significant barriers remain. Bringing forward more land for house building, while also enabling more first time buyers to realise their ambition of home ownership would be another positive step on the way to tackling the housing shortage.
The industry is keen to work with government to develop policies that would allow for more high quality homes to be built in the right places.
Communities Secretary Eric Pickles said:
The 2008 housing crash blocked millions of hard-working, creditworthy people from becoming homeowners, at a time in their lives when they should have been able to expect to get on the property ladder.
We’re turning that around with Help to Buy, but today’s new Starter Homes scheme will offer a further boost, giving young people (under 40) the opportunity to buy low cost, high quality new homes for significantly less than they would normally expect.
Sir Terry Farrell CBE, Founding Partner at Farrells, said:
This panel has the potential to make a real difference. It builds on the recommendations of the Farrell Review, which highlighted the need for more proactive planning and better placemaking as we attempt to address the housing crisis, with radically higher priority given to landscape, sustainability and the public realm.
Only by planning and designing our villages, towns and cities together with local communities can we create the kind of built environment we all aspire to and should be demanding.
Notes to editors
The consultation will be live on Monday 15 December, and will run for 8 weeks.
The government will now work with the industry to develop a register that, from January, will allow prospective buyers to provide their details and register their interest in owning a Starter Home.
House Builders that have already pledged their support to the scheme. Between them, these developers built around 60,000 homes in the last year:
- Linden/Galliford Try
- Taylor Wimpey
- Capital and Centric
- Mount Anvil
- Development Securities
A further 15 smaller builders and members of the Federation of Master Builders have also pledged their support for Starter Homes. Between them these firms will build around 450 homes per year:
- Affleck Property Services
- Badger Building (E Anglia)
- Border Craft Homes
- Carr & Carr (Builders)
- Farnham Bros (Youldon & Barrett)
- Humber Construction Brick Baron
- John Collis Group
- Keigar Homes
- N London Construction
- REB South West
- Swale Valley Construction
- Swallow Hill Homes
- Swan Homes (East Midlands)
- Tilbury Projects
- Beattie Passiv
Local authorities that have already pledged support to the scheme:
- London Borough of Bexley
- Poole Borough Council (South West)
- Wychavon District Council (West Midlands)
- South Holland District Council
- Royal Borough of Windsor and Maidenhead
- Trafford Council
- Cheshire West and Chester Council
- Sevenoaks District Council
- North Norfolk District Council
The Design Panel announced today will be made up of the following appointments:
- Sir Terry Farrell
- Sir Quinlan Terry
- Roger Scruton
And representatives from:
- Design Council
- Create Streets
- Royal Institute of British Architects (RIBA)
- Royal Town and Planning Institute (RTPI)