Mortgage lenders call for lower Starter Homes requirement
The Council of Mortgage Lenders (CML) has responded to the Government’s scheme to introduce a 20% starter homes requirement on developments by stating that it should be lowered.
The CML are proposing that 15% of units in a residential development should have to be discounted Starter Homes for first time buyers. It does however state that it has sympathy for arguments in favour of allowing local authorities to set targets in line with local need.
Mortgage lenders have also said that the minimum size of development subjected to the starter homes requirement should be 20 units, as opposed to 10 proposed by the government. It called for exemptions for specialist developers such as student housing, and for schemes supporting a high level of alternative affordable housing tenures.
The government’s consultation on Starter Homes was extended until 27 May 2016.