Starter Homes changes expected as White Paper draws closer

Government sources told Inside Housing the release of the paper, which is designed to set a new direction for housing policy, had been “loosely pencilled in” for next week.

The government had previously said it would publish the policy paper this month, but it has previously been subject to delay with communities secretary Sajid Javid reportedly facing a backlash from Conservative MPs over development-friendly clauses. 

Key sector bodies, including those who have been involved in behind-closed-doors consultation with government, said they expected the paper to reform key elements of the controversial Starter Homes strategy.

One source told Inside Housing ministers were considering a reduction to the proposed 20% threshold of Starter Homes in all new developments.

The 20% threshold, proposed in a consultation last year, was met with sharp criticism from developers, local authorities and charities which warned it would substantially reduce levels of more conventional affordable housing and distort markets.

An exemption from the Starter Homes policy for Build to Rent developers, allowing them to provide discount market rented housing instead is also believed to have been discussed.

Mr Javid has hinted at measures to force builders to increase build-out rates to combat perceived landbanking, a proposal which has generated concern from the sector.

The Housing White Paper follows several housing policy announcements in the Autumn Statement.

It is expected to set out measures aimed at boosting housing supply, to bring the government towards its target of a million homes over the life of this parliament.

A Department for Communities and Local Government spokesperson said: “We do not comment on speculation. The Housing White Paper will be released in due course.”