Tuesday, 15 March 2016

Labour Peer Calls For Answers On Starter Homes

A senior Labour peer has called on the government to explain what is happening with Starter Homes. The Housing and Planning Bill introduces the government’s flagship homeownership policy. Under the policy, first-time buyers under 40 years of age can buy a property with a 20% discount. Major lenders are concerned that buyers would be able to sell their Starter Homes at full market value after five years and make a profit and that this would distort the market and incentivise people to overpay, and have warned the government that they will not support the scheme as it stands. Most major lenders want the 20% discount to be held in perpetuity or for the period where the discount applies to a resale to be extended. Read more on Inside Housing.

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