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AHP set to deliver Starter Homes
The Department for Communities and Local Government is expecting to shift some of the focus of its Affordable Homes Programme towards the delivery of Starter Homes, following next Wednesday’s Spending Review.
Melanie Dawes, permanent secretary at the Department for Communities and Local Government, indicated the continuing shift of focus at the Savills annual housing seminar in London this week.
She added that moving forward the department expected affordable housing needs to be met by Starter Homes “in some cases”.
When Ms Dawes was challenged about future provision for people who still cannot afford homeownership, she added that a range of tenures is still needed and pledged to engage with the housing sector to deliver appropriate products.
“I think over the last few months my ministers have shown in the deal they struck over Right to Buy that we are approaching this in a spirit of discussion,” she added. It is not clear how the Affordable Homes Programme (AHP) would help to deliver Starter Homes as they currently do not receive any capital funding.
The Treasury announced last July that the government intended to “refocus” housing budgets towards low-cost homeownership products.
The government has already announced several measures to boost Starter Homes – homes sold with a 20% discount for first-time buyers.
The Housing and Planning Bill brings in a new requirement on councils to promote Starter Homes and local authorities will no longer be able to insist on social or affordable rent as opposed to Starter Homes in Section 106 planning agreements.
