Government announces new starter home incentive
The government has confirmed that it will be introducing a new incentive scheme to help first tie buyers purchase their first starter homes. The scheme is set to be be introduced in January and is will be paid for by a change in the planning system.
The new scheme will allow buyers to purchase a newly built property at a 20% discount. The government is going to change the current rules for developers paying contributions towards the community infrastructure (CIL). Because of the changes property developers will be able to build homes for less and they will have to pass this discount onto first time buyers. Ultimately there will be a reduction in the numbers of social housing being built but more people will be able to purchase their first homes.
The new scheme has been welcomed by house builders and the home buyers alliance who point out that we are still only building half of the number of homes that we need each year. We currently need to build in excess of 250,000 properties every year to keep up with demand. Currently we are only building just over 100,000 which means that house prices and rents are being pushed up to levels not seen before.
The coalition government is desperate to get as much good news flowing as possible before the general election next year and is keen to show us that they are the party we can trust with the housing market and thus the economy.