Even Starter Homes are Unaffordable

Even Starter Homes are Unaffordable
Four in five local councils do not believe that discounted starter homes should qualify as affordable housing. Just 7pc think starter homes will address the need for affordable homes in their area. couple_firsttimebuyer_propertyladder_free A survey by the Town and Country Planning Association (TCPA) also showed that, of 105 local councils, 59pc said that the need for affordable housing was severe, and 87pc said that starter homes wouldn’t adequately meet demand and need. 79pc said they did not think affordable housing should be classified as such. Kate Henderson, Chief Executive at the TCPA, said: “This survey highlights that [starter home initiatives] will only help some people get a first step on the housing ladder. We need a strategy that provides decent housing for everyone in society, including those most in need.” What Does this Mean to the Private Rental Sector? Supply is having a huge impact on the property market as a whole, driving rents up and giving landlords a choice of tenants in most circumstances. Affordable housing is one of the government’s main points of contention, and it has promised to build 1m new homes by the end of its tenure in 2020. This survey (in addition to a report compiled by the House of Lords’ National Policy) paints a different picture – housebuilding is behind target, and those that are being built are not strictly affordable for those in the most desperate need for a home. Furthermore, yet another report, this time by the Local Government Association, says that the offered 20pc discounts for starter homes would help just 45pc of constituents in England afford a property, and these will be limited to the North East, North West and East Midlands. Therefore, we can assume that it will be especially difficult to buy south of London, plus those at the bottom of the earning ladder are becoming increasingly squeezed out of the housing picture. Landlords could do worse than investing to let in the South, plus also with small houses in the North, to accommodate households who will not benefit from a discounted rate for their first-time property.