Housing developments of 10 homes or more will have to make one home in five a starter home under government proposals.
Measures put forward in the starter homes consultation also included proposals to allow PRS developers to build starter homes off-site, or pay a commuted sum.
The move is hoped to support 200,000 new homes for first-time buyers under 40 as part of the government’s pledge to build 1m new homes, including affordable housing for sale, rental and private purchase.
Starter homes will be sold at a minimum 20% discount below market value.
Housing minister Brandon Lewis said: “Today’s proposals mean starter homes will be built on hundreds of sites across the country, encouraging private and affordable housing to be built side by side in mixed communities.”
The government’s starter homes support package is £2.3bn for a first wave up to 60,000 starter homes, including £1.2bn for brownfield land house building.
The consultation also included proposed measures to ensure starter homes can be resold only to other first time buyers, at a discount, from five to eight years after purchase.
Restrictions on subletting so starter homes do not become buy-to-let opportunities were also included in the consultation, which closes on 18 May 2016.
Click here to read the full starter homes regulations document.
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