Government plans for 1 in 5 new builds to be a Starter Home

Monday 04 April 2016

DCLG have announced its plans to introduce legislation that will ensure 1 in 5 new homes on sites of 10 or more must be Starter Homes.

The proposed plans were revealed in Starter Homes Regulations, a technical consultation that DCLG is undertaking to gather industry insight and opinion on regulations that are set to be introduced in the Housing and Planning Bill.

Other measures that are proposed in the consultation include:

  • Introducing legislation that ensure Starter Homes can only be resold to other first time buyers, at a discount, for 5 to 8 years after purchase.
  • Placing restriction on the renting of these properties to prevent them being bought as buy-to-let properties.
  • Allowing joint purchases of starter homes where one partner is above the age of 40 and one is below.

Starter Homes will be available exclusively to first-time buyers under 40 and will be sold for at least 20% below the open market value. A price cap of £250,000 outside Greater London applies, and £450,000 in Greater London. 

However, DCLG have said that they are committed to ensuring that Armed Forces personnel are well looked after and should be exempt from the 40 year age limit. 

They are also asking for opinion on whether the existing proposals which prevent starter homes being sold at full market value should be refined – to allow the proportion of market value the individual is able to realise on sale to increase gradually with the number of years they have lived in the property before the restriction is completely lifted.

Consultation responses will help to inform the preparation of the regulations following the Housing and Planning Bill’s Royal Assent.

The consultation closes on Wednesday 18 May 2016


Complete the online survey

email your response to:

Remember to state whether you are responding as an individual, or submitting an official response on behalf of your organisation and include. 

If you prefer, you can submit your response to one or all of the questions to our in-house Policy and Campaigns Officer, Tim Douglas -