New homes will be offered at a discount of at least 20% to first-time buyers, Housing Minister Gavin Barwell confirmed today.
The ‘Starter Homes’ to be built on brownfield sites nationwide – but not in London – will be available to first-time buyers aged between 23 and 40.
Some 30 local authority partnerships, which form part of the £1.2 billion Starter Home Land Fund set up in April 2016, have already got the go-ahead to launch these schemes.
The new developments will also support regeneration of the surrounding areas, including town centres.
To date, 71 sites have been identified and have received investment, including land in Plymouth, Stockport, Bristol, Swindon, and the Isle of Wight, with construction set to start later this year.
Each local authority partnership will work together with the Homes and Communities Agency to identify additional brownfield land that could potentially be used for Starter Homes.
The agency is also appealing for local councils, which are interested in using their land to deliver homes quickly through its £1.7 billion accelerated construction programme, to come forward. The government says this will see up to 15,000 homes started on surplus public sector land during this Parliament.
You won't however, be able to use Starter Homes for buy to let purposes.
Mr Barwell says: “This government is committed to building Starter Homes to help young first time buyers get on the housing ladder.
“This first wave of partnerships shows the strong local interest to build thousands of Starter Homes on hundreds of brownfield sites in the coming years. One in three councils has expressed an interest to work with us so far.”
Mark Hayward, managing director, National Association of Estate Agents, comments: "The dream of homeownership is too far out of reach for thousands of aspiring first-time buyers, and the building of new homes on disused brownfield sites, as well as a 20% discount for buyers aged 23-40 will go some way to bridging this gap.
“But while today’s announcement may feel like a welcome start to the New Year, as always we need to see these plans put into swift action."