PART 1New homes in England

CHAPTER 1Starter homes

2What is a starter home?

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.