Taylor Scott International News
Discounted starter homes could be out of reach for the majority of families in need of an affordable home in many parts of the UK, it is claimed. First time buyers will be able to buy 200,000 new starter homes over the next five years at a minimum discount of 20% of the market value with discounted prices capped at £450,000 in London and £250,000 elsewhere. However, according to an analysis by the Local Government Association while the national starter homes scheme could help some people onto the housing ladder it won’t help everyone who wants one of these homes. The LGA pointed out that crucial details of the scheme are yet to be confirmed but it is concerned it will help the fewest numbers of people in areas where the housing affordability crisis is most acute and will be out of reach for many people in need of an affordable home in the majority of local areas. Although house builders will be able to build and sell starter homes below the price caps, councils are concerned that this could be difficult for developers to achieve without compromising on quality, particularly in areas with higher house prices. Town hall leaders are calling for the system to be flexible regarding the number, type and quality of starter homes so that they meet the needs of local communities. Councils also need powers to provide affordable rented homes that are crucial for enabling people to save money towards a deposit, and the means to secure investment in vital infrastructure that new home buyers will expect and will rely on. The analysis by real estate services firm Savills for the LGA reveals that discounted Starter homes prices will be out of reach for all people in need of affordable housing in 67% or 220 council areas and are out of reach for more than 90% of people in need of affordable housing in a further 80 council areas. People in need of affordable housing are defined as those who would have to spend 30% of their household income to rent or buy a home. The research says that for the average earner with a minimal deposit of 5% looking to buy an average priced house, a 20% discount would make it possible to borrow enough to buy a starter home in just 45% of all council areas in England. This includes all average priced homes in the North East of England, 95% in the North West and 90% in the East Midlands. Being able to save a 20% deposit would make an average priced home with a 20% discount affordable to buy in a further 29% of local areas. This includes a third of council areas in Yorkshire and Humber and the West Midlands. The average earner living in 85% of London boroughs, 49% of council areas… Taylor Scott International
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