At the Conservative Party conference, David Cameron pledged to build more affordable homes across the UK.
Under
the "starter homes" programme, originally announced a year ago, 200,000
first-time buyers will be able to purchase new houses or flats at a 20%
discount.The quid pro quo of this arrangement is that developers will be relieved of their obligations to provide affordable homes for rent, or having to pay for general local infrastructure such as roads, or indeed schools.
While this may be good news for Britain's aspiring homeowners, the worry is that there will be fewer homes for poorer families to rent.
And local authorities fear they will have billions of pounds less to spend on infrastructure.
What is the starter homes programme?
When, eventually, the first building bricks are laid, the government's starter homes initiative will offer first-time buyers a much better deal than they currently get on the Help to Buy programme.Buyers will need to be under 40, and cannot have owned their own home previously.
They will get at least a 20% discount on the purchase price, but they will not be allowed to sell or rent the properties for their full market value for five years.
According to the plans published so far, the discounts will apply to properties worth up to £250,000 outside London, or £450,000 in the capital.
Permission will only be granted where land is scheduled as under-used, or as an unviable commercial or industrial site.
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