Starter Homes Scheme Is Not Affordable

The majority of councils in England do not agree that starter homes should be classed as affordable housing, with only 7% of councils expecting them to address the need for affordable housing in their local authority areas.

Local councils, of all political parties, believe that the Government’s Starter Homes policy are more likely to hinder and not help to address the growing need for genuinely affordable housing across the UK, new research has found.

Further concerns have been raised regarding the impacts of the Government’s plans to reduce social rents by 1% a year for the next four years and the extension of the Right to Buy to housing association tenants, according to a survey commissioned by the Town and Country Planning Association (TCPA) and the Association for Public Sector Excellence (APSE).

Additionally, over two thirds of councils (69%) anticipate that they will be building less social and affordable housing as a result of the Government's plans to reduce social rents by 1% a year for the next four years. Only 3% say they plan to build more social and affordable homes as a result.

Steve Povall, Managing Director of Residential Estates said ‘a housing strategy that caters for everyone in society is needed. The survey has clearly shown that around 80% of councils would not call starter homes affordable simply due to the fact that they are not affordable for many.’

Almost three fifths of councils described their need for more affordable housing as severe and 37% as moderate, and 89% of respondents think that the extension of Right to Buy will lead to less housing available for social rent, with only one council thinking that it would be beneficial.