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First time buyers 'receive boost onto housing ladder'

16-Dec-2014

First time buyers in the UK are to be offered a 20 per cent discount on new build homes, it has been revealed.

The government has recently announced its Starter Home initiative will offer 100,000 properties at a discount.

These new proposals revealed that the new homes will be built on under-used and brownfield land. This land will be freed from the usual requirements on developers to fund affordable homes and infrastructure.

First time buyers under the age of 40 will be first in line under the new scheme. The government claimed that planning costs and levies will be waived in return for a promise from housebuilders of such discounts.

Housebuilders expected to benefit from the scheme include Barratt, Persimmon and Taylor Wimpey.

Commenting on the initiative, prime minister DCameron said that the proposals will help those who were previously locked out of the housing market to get onto the property ladder.

He added: "Hardworking young people want to plan for the future and enjoy the security of being able to own their own home. I want to help them do just that.

"Under this scheme, first time buyers will be offered the chance of a 20 per cent discount, unlocking home ownership for a generation. This is all part of our long-term economic plan to secure a better future for Britain, making sure we are backing those who work hard and get on in life."

The move was also welcomed by the Home Builders Federation (HBF) who said that ensuring enough homes are built to cater to demand plays a significant role in tackling housing shortages.

Stewart Baseley, executive chairman of the HBF, added: "The industry is keen to work with government to develop policies that would allow for more high quality homes to be built in the right places."

The government's announcement coincides with the publication of a study by Knight Frank which showed that lenders are increasingly offering more deals to property developers.

This has also helped to boost competition in the property market and forced down the cost of debt.

The survey of the major banking institutions showed that 36 per cent of those polled said they had reduced their pricing as a result of this increased competition while more than a quarter said they were prepared to take on more planning risk.
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