The government’s Homes and Communities Agency will partner with local authorities across the UK to fund so-called ‘starter home’ developments.
In a prospectus document published today the government invited local authorities outside London to express an interest in using the £1.2bn Starter Home Land Fund.
The fund will be used to prepare brownfield land for starter homes, which will be sold at a 20% discount for first-time buyers.
The government has committed to building 200,000 starter homes by 2020 exclusively for first-time buyers using £2.3bn of funding.
Brandon Lewis, minister of state for housing and planning (pictured), said: “We want to ensure local authorities have the opportunity to use this fund not just to help more of their young people into homeownership, but also to support their wider aspirations for local growth and regeneration.
“Starter home developments have the potential to unlock wider economic benefits. For example, bringing back young homeowners into the hearts of our towns and cities can also help secure a brighter future for local businesses and create vibrant new communities.
“That is why I am keen to see ambitious authorities across the country take advantage of this opportunity and form a partnership with the Homes and Communities Agency to bring forward starter homes developments in their areas.
“Together, we can ensure that more young people can afford to buy their own home, and contribute to the economic prosperity of local places across the country.”
In the prospectus document the government said it expected local authorities to be capable of building between 300 and 600 starter homes across several sites, while it expected starter homes to account for at least 50% of homes built.
It will however consider making land available for authorities with only one or two available sites without launching into a formal partnership.