Friday, 6 January 2017

First Wave Of Starter Homes Reignites Distortion Fears

The first wave of Starter Homes will be sale-only products, reigniting fears over their distorting effect on local housing markets. Housing minister Gavin Barwell had suggested some ‘Starter Homes’ would be rent-to-buy products. The government has confirmed that all homes built on brownfield sites by the 30 partner councils would be entirely for-sale products. These councils will use a share of £1.2bn of government cash to prepare brownfield sites for large developments of the homes, which will be sold at 80% of market value. Experts warned these units could be almost impossible to value against market rates and may even create a sub-market for Starter Homes, as demand for these cheaper properties spirals, skewing prices. Read more on Inside Housing.

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