{"id":22859,"date":"2016-02-17T10:17:03","date_gmt":"2016-02-17T10:17:03","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=22859"},"modified":"2016-02-17T10:17:16","modified_gmt":"2016-02-17T10:17:16","slug":"lga-warns-starter-homes-unaffordable","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/lga-warns-starter-homes-unaffordable\/22859\/","title":{"rendered":"LGA warns starter homes are unaffordable"},"content":{"rendered":"<h2><span>A new analysis has suggested the government\u2019s discounted starter homes scheme is not affordable for the majority of first-time buyers\u2026<\/span><\/h2>\n<p>The starter homes scheme is designed to help first-time buyers gain a foot on the property ladder. It will see some 200,000 new homes built over the next five years at a minimum discounted price of 20 per cent market value. In London, this will be capped at \u00a3450,000 and for the rest of the UK at \u00a3250,000.<\/p>\n<p>However, the\u00a0<span><a href=\"http:\/\/www.local.gov.uk\/\" target=\"_blank\">Local Government Association<\/a><\/span>\u00a0(LGA) said while the scheme could help some people gain their own home there are concerns it will not help people in areas suffering an affordability crisis.<\/p>\n<p>Councils also warned the scheme could prove difficult for developers to achieve without compromising on quality\u2014particularly in areas with high house prices.<\/p>\n<p>Town hall leaders have asked for greater flexibility with the scheme to enable them to allocate the number, type, and quality of start homes for their area. This would allow them to discern the demand and need for these properties based on their community.<\/p>\n<p>Councils also said powers to provide affordable rented homes were imperative to help people save a deposit. People are defined as being in need of affordable housing if they have to spend 30 per cent of their household income to buy or rent a home.<\/p>\n<p>The analysis, which was carried out on the LGA\u2019s behalf by Savills, revealed starter homes in 220 council areas (some 67 per cent) would be out of price range for people in those communities. Furthermore over 90 per cent of people in need of affordable housing in an additional 80 council areas (25 per cent) would not benefit from the discounted scheme.<\/p>\n<p>The analysis also revealed that just 45 per cent of people in all council areas across England would be able to borrow enough to buy a starter home. This was based on an average earner with a minimal deposit of five per cent, seeking to buy an average priced home at a 20 per cent discount. This included all average priced homes in the North East of England, 95 per cent of the North West and 90 per cent of the East Midlands.<\/p>\n<p>The ability to save a 20 per cent deposit would make an average priced home with a 20 per cent discount affordable in a further 29 per cent of areas. This included a third of council areas in Yorkshire and Humber, and the West Midlands.<\/p>\n<p>Unsurprisingly, the outlook for starter homes in the south was bleak. The analysis suggested the average earner living in 85 per cent of London boroughs, 49 per cent of council areas in the south East, and 40 per cent in the South West would need to find a deposit of more than 20 per cent. This would enable this group to buy an average priced home with a 20 per cent discount.<\/p>\n<p>Building starter homes will also have a significant impact on affordable homes, as the 20 per cent discount would be funded by exempting developers from paying Section 106 contributions towards affordable rented housing and Community Infrastructure Levy contributions. In a government analysis, it was found that if a 100,000 starter homes were built through the planning system, between 56,000 and 71,000 social and affordable rented homes would not be built.<\/p>\n<p>The LGA said there needs to be more done to ensure affordable homes are built based upon local needs and that councils have the means to invest in community infrastructure.<\/p>\n<p>LGA Housing spokesman Councillor Peter Box said: \u201cThe shortage of houses in this country is a top concern for people who are finding that buying their first house is increasingly out of reach. Councils support measures to boost home ownership and starter homes are one of the ways this can be achieved.<\/p>\n<p>\u201cThis new analysis shows that starter homes will be out of reach for the majority of people that are in need of an affordable home. Not everybody is ready to buy, and it is crucial that councils are still able to ensure there is a mix of homes that are affordable for those people that need them.<\/p>\n<p>\u201cIn some places, such as the North-East and Midlands, the scheme will give people better chance to get on the housing ladder. However, a national scheme will not work for every area and fewer people will benefit from Starter Homes in areas where the housing crisis is most acute.<\/p>\n<p>\u201cCouncils must have the flexibilities to shape the number, location and types of starter homes to ensure that they meet local need, and the powers to secure vital investment in associated roads, schools, health and other community services that people will rely on.<\/p>\n<p>\u201cThe private sector has a key role to play in solving the housing shortage, but it cannot build the 230,000 needed each year alone. Councils need to be able to ensure genuine affordable homes continue to be built for rent and sale across the whole country for future generations and the millions of people stuck on waiting lists.\u201d<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>A new analysis has suggested the government\u2019s discounted starter homes scheme is not affordable for the majority of first-time buyers\u2026 The starter homes scheme is designed to help first-time buyers gain a foot on the property ladder. It will see some 200,000 new homes built over the next five years at a minimum discounted price [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-22859","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>LGA warns starter homes are unaffordable | Planning, Building &amp; Construction Today<\/title>\n<meta name=\"description\" content=\"A new analysis has suggested the government\u2019s discounted starter homes scheme is not affordable for the majority of first-time buyers\u2026\" \/>\n<meta name=\"robots\" content=\"index, nofollow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/lga-warns-starter-homes-unaffordable\/22859\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LGA warns starter homes are unaffordable\" \/>\n<meta property=\"og:description\" content=\"A new analysis has suggested the government\u2019s discounted starter homes scheme is not affordable for the majority of first-time buyers\u2026\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/lga-warns-starter-homes-unaffordable\/22859\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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