The Tories say that there will be a 20% discount on the market value for prospective purchasers under the age of 40. The intention of the Tories is to stimulate building to create 100,000 extra starter homes on brownfield land. The land has already been picked out and will be subject to several tax exemptions.
The assistance would include fewer planning constraints, such as not requiring the developer to build a portion of social housing as part of any scheme – typically enforced via the well publicised S. 106 obligation.
It is also to be considered whether the zero carbon homes standard, which applies to all properties built from 2016 and aims to improve energy efficiency, would also be exempted – allowing builders to scrimp on insulation levels and on-site micro-generation of renewable energy.
David Cameron elaborated:
“We want to help more young people achieve the dream of home ownership, so today I can pledge we will build 100,000 homes for young, first-time buyers. We will give a 20% discount on these homes by exempting them from a raft of taxes and by using brownfield land.
‘I don’t want to see young people locked out of home ownership. We’ve already started to tackle the problem with Help to Buy mortgages, and these plans will help tens of thousands more people to buy their first home.”
SRJ / LCB 02.10.14