A new scheme has been announced; The Starter Home initiative will come into effect in the New Year, the government has announced. 100,000 new build properties are to be offered to people under the age of 40 at with a 20% discount on the property value.
The proposals are now open to an eight week period of consultation. The developments will be built on under-used or brownfield land, and will relax certain criteria for the developers, making it easier for them to build. By removing certain planning costs and levies, houses will become cheaper to build, and therefore can be sold for below market values.
Currently, the government say that certain planning charges can cost developers up to £15,000 per home per site, adding thousands of pounds to the cost of a site.
Those who are eligible can register their interest, and the homes will be offered to first time buyers under the age of 40. If they can get a mortgage on a home with at least 20% off, with similar repayment periods as other mortgages, then the monthly payments will be greatly reduced.
David Cameron said that this scheme will be “Unlocking home ownership for a generation” that otherwise would not be able to afford a home.
Overall, it should help to boost the amount of homes that are built, which is the surest way to try and bring prices down across the entire market.