PART 1

New homes in England
CHAPTER 1

Starter homes

What is a starter home?
2
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 home | Price 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.