January 19, 2015

Scheme offers 20pc discount to first time buyers

Prime Minister David Cameron has launched a new initiative offering 100,000 first-time buyers the chance to buy new homes at a 20 per cent discount.

Under the scheme, launched on 15 December, aspiring home owners will be able to register their interest in buying via the Starter Home initiative from the start of 2015.

The Starter Home project will work via a change to the planning system to free under-used or unviable brownfield land from planning costs and levies.

Currently, builders can face an average bill of £15,000 per home in Section 106 affordable housing contributions and tariffs. Under the proposals, developers offering starter homes would be exempt from Section 106 charges and Community Infrastructure Levy charges in return for selling homes built on the site at below market value prices.

A total of 100,000 homes will be available to first time buyers aged under 40, with work on the first phase starting in 2015.

More than 30 house builders, including Barratt, Persimmon and Bellway, have pledged to support the scheme, along with several local authorities.

As well as benefiting the largest developers, the Starter Home initiative has the potential to create new opportunities and contracts for smaller firms and sub-contractors within the construction sector.

Whatever the size of a business, having access to construction law specialists is likely to prove a wise investment, as the right advice at the right time can be crucial to prevent costly and time-consuming disputes arising at a later date. For more information, please contact Adam Davis.