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People under age of 40 signing up for homes at 20% discount

Posted: 7th May 2015   In: Residential Conveyancing

Thousands of people under the age of 40 have been signing up to buy starter homes at a 20% discount.

The homes are being made available as part of a government scheme to get Britain building and help young people get on the housing ladder. It’s hoped that 100,000 new homes will be made available.

The scheme is being funded by changes to planning requirements that came into effect on 2 March. Builders who develop surplus commercial and industrial land no longer have to provide affordable housing as part of the conditions for getting planning permission.

In return, they have to offer homes at a 20% discount to the market value to first time buyers under the age of 40. It means that people buying a £200,000 home will be able to get a discount of £40,000.

The homes must remain available at 20% below market value for the first five years – meaning any first-time buyer who looks to resell within the first five years will have to offer this discount to the next first-time buyer.

Work on the first homes is expected to start within the next few months.

People who would like to buy one of these homes are advised to visit the government website www.starter-home.co.uk to register their interest.

A government spokesman said: “The number of first-time buyers is already at a seven-year high and these Starter Homes, available at a 20% discount, will help even more people realise their dream of home ownership.

“This will also form part of our wider efforts to get the country building again, which have already led to 700,000 new homes being delivered since the end of 2009.”

Please contact Gurjit Dhadar if you would like more information about the legal aspects of buying and selling a home.

Posted by: Gurjit Dhadar
Residential Conveyancing
Luton Office