The homes, which are new build and sold to first-time buyers under 40 at a 20% discount, have been reclassified as a form of affordable housing obliging developers to earmark a percentage of an overall site to build these homes.
Because of time constraints in achieving the government’s target of 200,000 homes by the end of this parliament, it is likely that a bulk of starter homes will be delivered as a replacement for other affordable housing on sites that are already allocated, Savills’ report said.
As a result, less homes will be provided for the Affordable Rent scheme, which tends to help the poorest households.
Starter Homes, Help to Buy: equity loan and shared ownership schemes primarily help households with incomes between £45,000 and £90,000 which will create a gap in available housing for low-income families.
The estate agent explained that replacing homes which will be delivered on the open market through routes like Help to Buy or as affordable housing will not provide additional homes.
“In fact, by narrowing the focus of housebuilding to first-time buyers, we risk creating the reverse effect and reducing the number of new homes built,” the report said.
