Thousands of starter homes promised by the government will be ready for first time buyers by 2018.
Building of the homes will start this year, to create homes which will be sold at a discount of 20% to first time buyers. The government has earmarked £1.2bn to support the project, which will involve a partnership of 30 local authorities in England. Approval has also been given for new ‘garden villages’, which could result in another 48,000 new builds across the country, while also creating local employment opportunities.
Garden villages are communities which have their own facilities, so are self-contained. Each one will have between 1,500 and 10,000 homes, but rather than being built in existing areas, they will be built in new areas. The two initiatives are part of the government’s plan to build more affordable homes so that first time buyers have a chance of getting onto the property ladder.
Around 100,000 homes are required every year to keep up with current demand for housing. House prices are increasing due to the shortage of homes, making it even harder for first time buyers to afford their own home, or for existing home owners to move up the property ladder. To be eligible for the Starter Homes scheme, applicants must be aged between 23 and 40.
First time buyers may find that they need some advice from a CeMAP qualified mortgage adviser, to ensure that they secure an affordable property and a competitive mortgage deal.