Starter Homes Risk Distorting Housing Market

The Council of Mortgage Lenders (CML) has warned Starter Homes could distort the housing market and urged the government to set a less ambitious target. CML said the government’s aim to build 200,000 Starter Homes by 2020 risks destabilising the market because they would make up a “significant” proportion of all new build properties. In its response to the government’s Starter Homes consultation, CML said a “less ambitious” target would lead to a “more successful” scheme. It said: “In the context of overall new build housing, the scheme would represent a significant proportion of all new build, and that presents a market distortion risk.” The CML also issued a warning that lenders may not support combining of government schemes such as Help to Buy with Starter Homes. Read more on the CML website.