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In his keynote speech in Manchester today, David Cameron has promised to boost the number of affordable starter homes for first time buyers.

The Prime Minister wants to scrap planning rules that require property developers to provide a certain amount of low-cost rental homes in new housing developments. Before the election, the Conservative party promised to provide 200,000 new “affordable” homes by 2020; Mr Cameron now wants to instigate this, whilst offering discount prices for first time buyers under the age of 40.

The reform will see the definition of affordable housing change to include “starter homes” as well as properties for rent, which will mean that property developers will still be fulfilling their obligations to the local council if they build cheap starter homes to buy.

Housing: the “big unfinshed business”

Since the Prime Minister took office in 2010, his record on housing hasn’t been great. Home ownership has dramatically declined since he took charge with property prices surging and mortgage deposits increasing. There are also less houses available for ownership now than at any point since the 1970s.

Mr Cameron has now said he wants to transform the “generation rent” that has established in the UK to “generation buy”. In his speech he said that housing is the “big unfinished business”. In a bid to prevent people from making a quick profit, buyers who utilise the policy will be unable to sell their property for five years.

The scheme is also likely to be popular with developers as building homes for purchase enables them receive an income on the sale of the property, whereas property for rent comprises a much slower rental return over a much longer period.

Next Steps

Once your offer has been accepted your next steps are to instruct a solicitor who knows what they are doing. Gorvins’ Residential Property Conveyancing Team will provide the expert, professional service you need to move into your new home. For a no-obligation fixed fee quote, give us a call today on 0343 507 5151 (standard landline charge and included in mobile minutes) or send your enquiry to enquiries@gorvins.com and a member of our team will be in touch with you.