Home Residential PropertyNew Build No homes built under home starter plan

No homes built under home starter plan

by LLP Editor
5th Nov 19 10:48 am

A government plan to create 200,000 new homes for first-time buyers has resulted in no homes being built, the National Audit Office has found.

Announced in 2014, “starter homes” were meant to be aimed at those under the age of 40 and sold at a 20% discount.

But legislation to take the project forward was never passed.

Property analyst Kate Faulkner told Radio 5 Live’s Wake Up To Money that the system was complicated with Help to Buy having been more successful.

The industry and the government has not been good at explaining schemes.

“The idea was – remember the timing, we were just coming out of a pretty severe recession – so what the government was coming up with ideas to… encourage developers to build more stock and… trying to improve home ownership levels,” she said.

“The idea was if you could sell a home for 80% that would be more affordable for a first time buyer that seling one at a 100%.. Help to Buy [which has been more successful] you effectively got a home for 80% but the 20% was free for the first five years via a loan,” she said.

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