Good news for young prospective buyers as construction begins on discounted homes throughout the UK. 2017 marks the beginning for the development of thousands of starter homes in 30 different sites across the country.
In an attempt to provide more affordable housing and encourage ownership for a generation leaning more towards renting, the government has launched a scheme in which they will be contributing £1.2 billion to provide first time buyers with the opportunity to buy a home 20% less than the usual market value. The cost of these homes will be capped at £250,000 and £450,000 if it is located in London.
In addition to the starter home scheme, the government has also given the green light on 14 new garden villages (small, self-contained communities) to be built across England and could provide more than 48,000 homes.
Both of these schemes are viewed as a necessary step in the right direction by many as the current level of demand continues to outpace the level of supply. It is estimated that the UK needs over 100,000 properties per year to battle the current housing shortage which is driving up property prices and making it difficult for first time buyers to get on the housing ladder.
Martin Tett, spokesman for LGA Housing, spoke on the recent announcements stating that: “It is good that the Government is working closely with councils to build more homes, alongside the infrastructure needed to support strong communities.
“Ultimately, local areas will need discretion on the number of starter homes required in new developments.
“This will allow councils to ensure a mix of homes - to rent and buy - are built, which are affordable for those people that need them and that are crucial for enabling people to save money towards a deposit.”
The list of councils offering starter homes is as follows…
