UK government announces £26 million fund to boost starter homes

The government has said that house building has been one of the its main priorities and the fund could help it to reach its target of building 200,000 starter homes by 2020.

The government will identify developable brownfield land and use the fund to acquire such sites. Individual sites will then be sold to architects, developers, councils, housing associations and small builders. Any proceeds raised from the sale of land will be diverted back to the government.

The new homes will only be available to first time buyers and under the Help to Buy scheme, they will be offered at a 20% discounted price.

The government hopes that this will help accelerate the delivery of housing. Clark said: "we are committed to delivering 200,000 starter homes by the end of this parliament, providing a real boost to aspiring young first-time buyers. We are also helping bring back into use more brownfield land for development, keeping the country building and delivering the homes our communities need."

The government also announced a further £10m fund dedicated to local authorities. This money will be used to prepare underused and vacant brownfield land for potential development of more starter homes. Further to recent planning reforms introduced by the Housing Bill and proposed changes to the national planning policy changes, this fund will help contribute towards the fast-track delivery of starter homes.

Planning expert Beth Grant of Pinsent Masons, the law firm behind Out-Law.com, said: "This announcement is clearly a positive step in kick-starting the government's initiative of unlocking land and helping first time buyers make their first step onto the property ladder. However, the scheme is not without its difficulties."

"Under the initiative, developers will be exempt from making affordable housing contributions as well as obligations relating to some wider infrastructure improvements. However, questions have been raised as to whether this will be enough to balance the lengthy and costly process of delivering a significant level of housing on difficult brownfield sites" said Grant. "A close eye will also need to be kept on the potential impact that the initiative may have on the delivery of affordable housing for the wider population."