Starter homes regulations

posted on 31 March 2016, updated on 31 March 2016

The DCLG is consulting on the details of regulations to be made under powers contained in the Housing and Planning Bill, including options for the starter homes requirement on reasonably sized sites.

The DCLG is proposing that for sites with ten or more homes, one fifth of homes must be starter homes. Local authorities will only be able to grant planning permission for new developments where this requirement is met. The starter homes requirement would be secured through a Section 106 agreement. Exemptions would be allowed for certain types of development, or where there are “overwhelming viability constraints”.

Starter homes will be available to first time buyers aged under 40 for at least 20% below market value. There will be restrictions on sub-letting and the homes can only be resold to other first time buyers, at a discount, for five to eight years after purchase.

The consultation, Starter Homes Regulations: Technical Consultation, closes on 18 May 2016.

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