From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

  1. Home
  2. Policy
  3. Consultation responses
  4. Starter homes regulations: technical consultation

Starter homes regulations: technical consultation

Last updated: 18 May 2016

Consulting body:
Department for Communities and Local Government
Status:
Closed
Period of consultation:
Runs from 23 March 2016 to 18 May 2016
CML action:
Response submitted

The Department for Communities and Local Government (DCLG) has issued a consultation on the draft regulations for Starter Homes.

A very quick analysis summarises the proposals including:

  • Tapering the restriction on equity uplift, to receive the maximum 100% no later than 8 years after purchase
  • Exemptions to the age limit of 40 if joint purchasers or Armed forces personnel
  • Restrictions to prevent BTL speculation
  • Minimum of 10 units or 0.5 hectares on site before the SHS duty would apply
  • Exceptions to requirements to have SHS if development not viable
  • Minimum requirement of 20% starter homes on a viable, eligible site.

The consultation also asks for evidence around assessing market value compared with other affordable housing.

We have now submitted a response to the consultation, which acknowledges the range of member views on the Starter Homes Scheme, and makes some key proposals to help improve the scheme and enable the greatest possible lender participation.

Download the full response below.