David Cameron will today announce plans to extend the government’s “starter home” policy to 200,000 new discounted homes.
The policy appears superficially attractive. New homes will be offered at a 20% discount, saving the average first-time buyer £43,000. However, this significant saving comes at a much wider cost.
In return for offering the discount, developers no longer have to pay for the new infrastructure to support this new housing, including schools, hospitals, roads and flood defences. This infrastructure still needs to be paid for of course, it’s just that developers are no longer the ones paying for it.
Developers will also be stripped of the need to sign section 106 agreements. These agreements oblige developers to either provide new affordable homes, school places or other contributions to the local area.
Again, these new services will still need to be paid for, it’s just that developers will no longer be the ones paying for them. So instead of landowners and developers payingRead More »from Help for Landowners: Tory housing policy is a handout to developers