The Starter Home Initiative was created with the aim of “unlocking home ownership for a generation”, according to David Cameron at the time it was announced. It aims to make 100,000 new build homes available for first time buyers under the age of forty with a discount of at least 20% of the property value.
Savings are to be made by relaxing levies and charges that come with acquiring planning to build on certain land sites.
The government say that these kinds of Section 106 charges can add an extra ?15,000 onto the price of building, per home per site. Over a large site, this number can add hundreds of thousands of pounds to the costs of building for the developers.
By freeing the developers of these charges, the government aim to get 20% off for first time buyers.
The savings made are ensured to be passed onto the homebuyer because the homes are not allowed to be re-sold at market value for a fixed period of time, preventing people buying them cheap so that they can sell them on at full price for profit.
Unfortunately, there have to be limitations as to who can access these properties. With only 100,000 up for grabs, not everyone who needs a home will be able to get one. It is only available to those under the age of forty who are first time buyers.
Despite being cheap, a good quality build is ensured by a panel of architects including Sir Terry Farrell and Sir Quinlan Terry. Good design, well built, at a cheaper cost.
Registration for the Starter Home initiative started at the beginning of 2015, and those interested must register online. The opening of the scheme was brought forward by six months from its original start date.
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Whether you're a first-time buyer or already a property owner you could buy a new home with a small deposit of 5%, heres how.
How Help to Buy Equity Loans Work
- First time buyers and those already on the property ladder can apply.
- To qualify a 5% deposit is required.
- A 75% mortgage must be secured from your bank or building society.
- The remaining 20% of the property’s value is funded by an equity loan provided by the Government.
- House prices can’t be more than £600,000 in England and £300,000 in Wales.