A new ‘starter homes’ scheme, which is being launched by the government, will provide those who are purchasing their first home to enjoy a 20% discount off the property price. They are hoping to encourage an increase in home ownership, as well as a rise in the construction that takes place on ‘brownfield’ land, which is land that has previously been used for an industrial or commercial purpose and is now lying empty and unused.
The government is hoping that by 2020, there will be at least 100,000 homes that have been built specifically for new buyers. The huge discount can be achieved because of the fact that home builders on brownfield sites will not have to pay local authority fees, resulting in an average saving of £45,000 per property.
The homes will be built with quality in mind, and there will not be any compromises made when it comes to energy efficiency. The main condition that comes with the discount is that home owners will not be allowed to sell their homes in the first 5 years of owning it and if they do, they will have to repay the 20% discount.
Home ownership, which is currently at its lowest point in the last 30 years, will hopefully start to increase with this scheme, as well as with the Help to Buy scheme, which aims to help hopeful property owners who, although are able to make the regular mortgage payments, have had trouble coming up with the initial deposit.