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Wednesday, December 17, 2014

The new Starter Home Initiative

The Government's new Starter Home initiative has been launched by the Prime Minister

The aim of the scheme is to help 100,000 first-time buyers under the age of forty into new homes with the aid of a 20% discount with help from house builders.

Under the new proposals, those builders who offer up new Starter Homes under the scheme would have them exempted from any Section 106 charges and Community Infrastructure Levy charges. This exemption could save developers, on average, £15,000 per new home. A cost saving that would then be knocked off from the sales price. Well that's the scheme in principle.

The homes will not be able to be re-sold at market value for a fixed period to avoid a 'flipping' re-sale opportunity, so we'll have to all wait and see if these discounts really end up being 20% or just less than a price that was too much.

The big builders have been very good at getting un-realistic valuations placed on new developments in the past. I remember some of the fantastical city centre apartment valuing that was going on in the boom times.

A sale is not always sale.

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