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Housing and Planning Act 2016

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2What is a starter home?E+W

This section has no associated Explanatory Notes

(1)In this Chapter “starter home” means a building or part of a building that—

(a)is a new dwelling,

(b)is available for purchase by qualifying first-time buyers only,

(c)is to be sold at a discount of at least 20% of the market value,

(d)is to be sold for less than the price cap, and

(e)is subject to any restrictions on sale or letting specified in regulations made by the Secretary of State (for more about regulations under this paragraph, see section 3).

(2)New dwelling” means a building or part of a building that—

(a)has been constructed for use as a single dwelling and has not previously been occupied, or

(b)has been adapted for use as a single dwelling and has not been occupied since its adaptation.

(3)Qualifying first-time buyer” means an individual who—

(a)is a first-time buyer,

(b)is at least 23 years old but has not yet reached the age of 40, and

(c)meets any other criteria specified in regulations made by the Secretary of State (for example, relating to nationality).

(4)First-time buyer” has the meaning given by section 57AA(2) of the Finance Act 2003.

(5)“Purchase”: the reference to a building or part of a building being available for purchase is to a freehold or a leasehold interest in the building or part being available for purchase.

(6)The “price cap” is set out in the table.

Location of starter homePrice cap
Greater London£450,000
Outside Greater London£250,000

(7)The Secretary of State may by regulations—

(a)amend the definition of “first-time buyer”;

(b)disapply the age requirement in subsection (3)(b) in relation to specified categories of people;

(c)specify circumstances in which a dwelling may still be a starter home even if it is available for purchase by joint purchasers not all of whom meet the age requirement.

(8)The Secretary of State may by regulations amend the price cap; and the regulations may provide for different price caps to apply—

(a)for starter homes in different areas in Greater London;

(b)for starter homes in different areas outside Greater London.

(9)Before making regulations under subsection (8) the Secretary of State must consult—

(a)each local planning authority in England,

(b)the Mayor of London, and

(c)any other person the Secretary of State thinks appropriate.

(10)Regulations under this section may amend this Chapter.

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