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Planning Advisory Service (PAS)
Open group | Started - July 2012 | Last activity - Today

Starter Homes/ Housing Bill

Simon Pickstone, modified 8 Years ago.

Starter Homes/ Housing Bill

Advocate Posts: 104 Join Date: 22/04/13 Recent Posts
Hi all, was just wondering if any information is filtering back to LPAs from developers etc. in terms of the emerging implications of the Governments new 'Starter Homes' agenda? Is there general support? Has anybody started to look at the numbers in terms of viability/development costs relative to 'traditional forms of AH' etc.? Is there still too much yet to be firmed up clarified to make a call at this stage? Any views welcome. Thanks
Andrew Chalmers, modified 8 Years ago.

RE: Starter Homes/ Housing Bill

Advocate Posts: 169 Join Date: 20/10/11 Recent Posts
Simon I would tend to the view that since there is no legislation in place yet nor has the govenment actually changed NPPF/G things are a little uncertain other than the direction of travel.  I would guess though that developers will be rubbing their hands all the way to the bank if starter homes are defined as affordable and authorities can no longer require social rented housing at far larger discounts than 20%.  Add to that not having to have poor people on their schemes!  Social housing is provided at a loss to the developer, starter homes may well make them profit especially as developers will no longer have to pay S106 or CIL contributions too.  I am unclear what will happen in areas where removing S106/CIL do not provide the 20% discount from market value...and where policies are already subject to viability concerns.  I have seen no evidence that there is a market for huge numbers of starter homes anyway and even at a discount of 20% they are not affordable.  Add this to the ever lengthening list of unevidenced and purely political planning changes and we will just have to wait and see how the market responds.  Of course this is also predicated on cheap land...but land values could rise accordingly.