Today, Cameron will say that he is changing planning policy rules so that the new starter homes will be classified as “affordable housing” - a move Number 10 says will incentivise property developers to build more starter homes, as opposed to rental properties.
Prime Minister David Cameron will today claim the Conservatives are “the party of homeownership” as he unveils plans to accelerate the building of discounted properties for first-time home buyers.
In his speech at the Conservative party conference in Manchester, Cameron will announce that the government’s proposed “starter homes” will be part of the wider “affordable housing” programme.
In the run-up to the General Election, Cameron vowed to build 200,000 so-called starter homes by the end of the decade.
The new, cut-price properties would be sold to first-time home buyers under the age of 40 at a 20 per cent discount off the market price.
The homes would not be means-tested, but property values would be capped at £450,000 in London and £250,000 elsewhere.
“Those old rules which said to developers: you can build on this site, but only if you build affordable homes for rent, we’re replacing them with new rules,” he will add. “You can build here, and those affordable homes can be available to buy.”
Touting the rules change as a move “from Generation Rent to Generation Buy”, Cameron will claim that it marks a “dramatic shift in the housing policy of our country”.
But the change is expected to draw sharp criticism from housing charities and others who will claim that the government is backing home ownership for middle-income earners at the expense of those on low pay.