New opportunities for first time buyers

More opportunities for first time buyers

The government’s recent announcements on starter homes and garden villages could make home ownership possible for thousands of first time buyers.

30 local authorities will get £1.2 billion from the Starter Homes Land Fund to build housing on brownfield sites. The local authorities have been chosen because of their commitment to build homes ready to sell in 2018. The full list is:

Blackburn, Blackpool, Bristol, Central Bedfordshire, Cheshire West and Chester, Chesterfield, Chichester, Lincoln, Ebbsfleet, Fareham, Gloucester, Greater Manchester, Lincolnshire, Liverpool, Luton, Mid Sussex, Middlesbrough, North Somerset, Northumberland, Pendle, Plymouth, Rotherham, Rushmoor, Sheffield, South Kestevan, South Ribble, South Somerset, Stoke-on-Trent, West Somerset and Worthing.

The starter homes will offer 20% discount for first time buyers aged between 23 and 40 and prices will be capped at £250,000 (£450,000 in London). The homes cannot be sold at full market value for five years after the initial purchase.

The government’s aim is to have 200,000 starter homes available by 2020, though some experts have doubted whether this is achievable.

You can register your interest in the starter homes scheme and keep updated on new developments at the new homes website of the Home Builder’s Federation.

Garden villages and towns announced

The other big New Year announcement was the location of 14 planned ‘garden villages’. These new, self-contained communities will have their own facilities (e.g. schools and shops) and will include green spaces as part of the design. With between 1,500 to 10,000 inhabitants, locations range from Cumbria in the north to Cornwall in the south. 3 garden towns (of more than 10,000 inhabitants) are also planned for Somerset, Buckinghamshire and the Essex-Hertfordshire border.

The new garden villages will provide 48,000 new homes and are due to receive £6 million in funding for technical and financial support to deliver the schemes.

Although the government has stated the importance of schemes being locally led, there has been opposition in some areas. Concerns have been raised that the character of existing communities will be significantly changed.

Remember, we can help with your conveyancing, whether you’re a first time buyer or an old hand at moving house. Give us a call on 0114 249 6926 or email info@pmpl.co.uk.

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