The House of Lords has stood against some of the government’s plans for starter homes, namely the discounted rate for first time buyers…
The government has once against suffered a blow after the House of Lords stood against proposed plans for starter homes.
The starter homes scheme was proposed by the Conservatives in their election manifesto. It offers first-time buyers a 20 per cent discount on new homes. One in five properties on new developments will be classed as starter homes.
However, the scheme has been heavily criticised since it was announced, with many lambasting the fact starter homes remain unaffordable for lower earners, despite being classed as “affordable”.
An amendment to see a repayment of the 20 per cent discount on a sliding scale if the property is sold during the first 20 years was backed by peers. The rate would be reduced by five per cent for each year of occupation up to 20 years. Crossbencher Lord Best said this would help “moderate” the generosity of the scheme.
He said: “It gets to the heart of the fundamental problem with this bill – namely the introduction of measures to generously subsidise home ownership schemes – with the subsidies being found by a transfer of public resources away from low-cost rented homes for less affluent households.”
Lord Beecham, the opposition spokesman, said: “We are being asked to endorse therefore a costly approach to a massive housing problem for the benefit of only one section of the population, to a greater or lesser degree, at the expense of people whose own needs and aspirations will continue to be unmet.
“We are in a position to encourage the government not only to think through properly the implications of these polices, but to ensure that what is the outcome of this bill is one which is fair to those seeking new homes to buy and fair to the taxpayer in general and those in great housing need.”
However, Housing Minister Brandon Lewis said the government remained committed to the starter homes scheme.
He said: “This government is determined to help anyone who aspires to own their own home achieve their dream.
“The housing bill will increase housing supply alongside home ownership and we are doing this with the biggest housebuilding programme since the 1970s to deliver the homes our country needs.
“The government believes it is wrong that a 30-year-old couple’s aspirations should be thwarted by having to wait until they are 50 to benefit from the full value of their starter home.
“We will listen carefully to the points made in the debate but our manifesto commitment to introduce starter homes at a 20 per cent discount for first-time buyers is unwavering.”