Who Will Be Eligible for the New Starter Homes Scheme?
2 minute read
The Government’s Help to Buy mortgage guarantee scheme may have come to a close at the end of 2016, but there are other initiatives and schemes currently running, working to help more Brits get onto the housing ladder. The Right to Buy scheme, for example, which helps English housing association and council tenants purchase their homes with discounts amounting to £77,900 outside of London and £103,900 inside the capital, is still available and widely used. For non-council and housing association tenants who want to make the leap from renting to owning property, a scheme which has been in the pipeline for three years will look to finally bear fruit in 2017. The Starter Homes scheme was announced three years ago, but the Government has remained largely silent about the project until this January.
Building is Under Way
Now that the areas in the UK where the very first starter homes are to be built have been announced, the scheme appears to at last be underway. Developed to help first-time buyers aged between 23 and 40 to get on the property ladder, the Starter Homes scheme offers a 20% discount on designated properties below £250,000 across England and below £450,000 in London. The scheme has also been designed to help stimulate the UK’s foundering house building statistics. Any new homes designated as ‘Starter Homes’ under the scheme must fulfil certain criteria. For example, they must have been built in a specifically delineated area, which must be on previously under-used or industrial land that is not currently assigned for housing development.
Getting on the Ladder
It may be some time before a decent quantity of appropriate housing becomes available under the scheme. Despite its launch being announced in 2014, Starter Homes scheme properties only broke ground in January 2017, which may mean a longer wait until homes hit the market. Whilst the full details about this particular scheme are still unknown, the Government’s ‘Help to Buy Shared Equity’ offering is still available for those who wish to consider purchasing a new-build home. Although the Government pledged to build 200,000 starter home properties by 2020, it is now unlikely that this target will be achieved. However, keeping your eyes peeled and staying abreast of the latest Starter Homes news may help you secure a property for just 80% of its value.