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First-time Buyer

PM launches discount home scheme for 100,000 first-time buyers

Lucinda Beeman
Written By:
Lucinda Beeman

The Prime Minister is set to launch a consultation into a scheme targeting those under 40 who have never owned their own homes.

The previously announced scheme, set to launch at the start of 2015 after being brought forward by six months, will offer a discount of 20 per cent on homes built on ‘used or unviable’ brownfield sites.

Those interested may register for the Starter Home Initiative from 2015.

Changes to the planning system allow certain brownfield sites to be redeveloped less expensively to allow the properties to be marketed for below value sales prices.

In a speech, pre-released to news agencies, Cameron will say: “Hard-working 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.”

He added: “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.”

At the moment, developers can face an average bill of £15,000 per home in Section 106 affordable housing contributions and tariffs but the scheme will exempt certain charges for those offering Starter Homes.

The government said to ensure the savings are passed onto buyers, the homes will not be able to be re-sold at market value for a fixed period. A design ‘panel’ has been set up to ensure the quality of the homes, said the government, but opposition MPs are questioning the clarity of the claims.

But the government said more than 30 house builders have already backed the plans, and say they would consider bringing forward land to be developed from next year.

This the extension of the Help to Buy 2 scheme and George Osborne’s surprise abolition of the slab Stamp Duty tax in the Autumn Statement, which is expected to benefit 98 per cent of home buyers.