Kim Vernau comments on David Cameron's "starter homes" plan
- Date: 06/10/2015
Kim Vernau, CEO at BLP Insurance, comments on the Government’s initiative to build 200,000 “starter homes” announced in David Cameron’s speech at the Conservative Party Conference.
“David Cameron’s promise to build 200,000 “starter homes” over the next five years is a step in the right direction but still short of satiating demand. This will not be a quick fix to the housing shortage we are currently experiencing as it only addresses demand from first-time buyers.
“Builders in England will now have to offer “starter homes” for first-time buyers under 40, with a discount of at least 20 per cent on the normal market price. These homes should, however, meet the standards and levels of quality required in terms of space, light, maintenance costs and energy efficiency requirements.
“This initiative raises questions about the impact this will have on private renters who are burdened with increasingly high rates due to the lack of affordable houses on the market. The Government will still need to ensure that there is no reduction in the amount of affordable housing which will also need to be available to an increasing number of the population.
“Cutting through the red tape presented by the planning process is critical to the success of any starter homes initiative. The challenge in resolving the issues presented by the current planning processes should not be underestimated.”
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