PRIME MINISTER TO PROMISE 200,000 STARTER HOMES

The Prime Minister is set to announce plans

for 200,000 new affordable homes to buy in his speech at

the Conservative conference today.

House builders in England will no longer be forced to provide low-cost rental

homes in new developments. Instead, they will be able to offer

starter homes for first time buyers aged under 40 at discounted prices as well.

David Cameron will tell Tory members that he hopes to transform generation rent into generation buy. Those that buy these new starter homes will be unable to sell them for a quick profit under the new policy, which aides insist will provide 200,000 new homes by 2020. 

Mr. Cameron’s speech began at 11:30.

 The PM is already facing opposition to his Right to Buy plans, which will

see housing association tenants given the option of buying their

homes.

However, Mr. Cameron has focused on homeownership in

his campaign, as levels have decreased significantly in recent

years due to spiralling house prices and high deposit requirements.

He will state that more needs to be

done to make housing affordable for young

people.

“When a generation of hard-working men and women in their 20s and 30s are waking up each morning in their childhood bedrooms, that should be a wake-up call for us. “For years, politicians have talked about building affordable homes, but the phrase was deceptive. It basically means homes that were only available to rent. What people want are homes that they can actually own.”1 – David Cameron at the event in Manchester

He will claim that local authority planning rules

demanding certain types of affordable

housing prevent house building and

he will vow to introduce more

flexibility into the system.

Policy Manager at lobby group Generation Rent, Dan Wilson Craw, insists that starter homes will not help tenants that are “really struggling” and urges Mr. Cameron to prioritise social house building instead.

“Under the Prime Minister’s plans, only 200,000 relatively well-off households will get to buy a home. But there are five million households who will remain stuck in private rented housing, paying our half of their income to their landlord.”1 –Dan Wilson Craw

The starter homes scheme was first revealed in the general election campaign and will offer discounts on homes worth up to £250,000 outside of London and £450,000 in the capital. Buyers will be unable to sell these homes for up to five years.

 

1 http://www.bbc.co.uk/news/uk-politics-34460822