Local governments demand more control over starter homes after warning they will be unaffordable

Chris Papadopoullos
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The LGA said many families would not be able to afford the new homes built under the scheme (Source: Getty)

Local governments have today warned Westminster that discounted starter homes will be unaffordable to the majority that need them unless the scheme is given more flexibility.

First-time buyers will be able to buy 200,000 new starter homes over the next five years at a discount of at least 20 per cent to market value.

Research by estate agent Savills for the Local Government Association (LGA) reveals that starter homes will be out of reach for all people in need of affordable housing in two thirds of council areas.

Read more: You need to earn £77k to afford the Tories' London starter home

Town halls want to be able to decide on the number, type and quality of starter homes so they meet local needs.

“The 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,” said LGA housing spokesperson Peter Box. “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.”

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London mayoral candidate Caroline Pidgeon said:

The shortage of affordable homes in London remains the gravest crisis facing our city, with over 500,000 people languishing on housing waiting lists and with far too many families living in overcrowded homes.

For decades London has failed to build enough new homes, driving up rents and putting property prices well beyond the reach of most ordinary Londoners. You’ve got to boost supply, and I’m not going to rely on the private sector to do that because they just haven’t delivered. City Hall should be given the powers to deliver the homes Londoners need.

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