Could the Starter Home initiative help you onto the property ladder?
The government has recently announced its intention to extend a plan to offer new homes to first time buyers at a discount of 20%.In December 2014, the government stated that they would make 100,000 new build homes available to first time buyers under the Starter Home initiative. This has now been extended to a commitment to make 200,000 properties available by 2020.
How will the Starter Home initiative work?
The Starter Home initiative will free under-used or unviable brownfield land from certain planning costs and levies. Developers will then need to pass on those savings to first time buyers.The government has stated that the homes will be available to first time buyers at 20% under the market price.In some cases, developers can face bills of £15,000 per home. But the Starter Home initiative will mean that developers will not have to pay certain charges.To guarantee that developers pass these savings onto you, homes will not be able to be re-sold at market value for a fixed period of 5 years.The maximum cost of any new home built outside of London will be £250,000. For homes built in the capital, the maximum cost is extended to £450,000.
Do I qualify?
In order to qualify for the Starter Home initiative you must be a first time buyer under the age of forty years old.
When will the homes be available?
More than 30 large and small house builders have already pledged their support. Local authorities are also now beginning to offer support to the plan.The government has announced that the building of the first homes 'is expected to start within monthsâ?.
Another bonus for first time buyers?
The Starter Home initiative is one of a number of plans which aim present more options to first time buyers. This includes the recently announced Help to Buy ISA, which offers a 25% bonus on the cash saved by first time buyers.Anyone saving for their first home can use the Help to Buy ISA to save up to £200 per month. Those saving the maximum amount will receive £50 bonus each calendar month. A first time buyer can then use the account to save a maximum of £12,000 which will rise to £15,000 when combined with the government contributions.
We can help you move
If you are looking to buy your first home, this initiative may help you get on the property ladder.Helen Robinson, Head of Conveyancing at at our Head office of Farnworth Rose Solicitors in Lancashire, comments: 'Any step to increase the building of homes and help first time buyers onto the property ladder has to be encouraged.'With further incentives for first time buyers including the Help to Buy Isa announced in the recent budget, more options are becoming available for those searching for their first home.â?Here at Farnworth Rose Solicitors, we're available to offer anyone thinking of buying a new home the conveyancing advice they need.We are here to make sure that legal side of buying your house runs smoothly, allowing you to concentrate on the things that are important to you.
Contact Farnworth Rose Solicitors today
If you are in need of expert advice on the process of buying a new build home, contact Farnworth Rose Solicitors today.You can speak directly to a specialist residential solicitor by calling us on 01282 695 400.Or, get your quote online today by clicking the button below to complete our quick online conveyancing quote calculator.
Farnworth Rose Limited, All Rights Reserved.