The government’s starter homes consultation has included proposals to allow PRS developers to build starter homes off-site, or pay a commuted sum.
Long-awaited details on starter homes requirements also include possible exemptions for on-site starter homes delivery for student accommodation, residential care homes and estate regeneration schemes.
The consultation states: “We propose that private rented sector developments could contribute to starter home provision and the requirement should be met through an offsite contribution for delivery of starter homes.”
The government has proposed that the requirement applies to developments comprising 10 units or more, or larger than 1.2 acres.
The considerations have been welcomed by the industry, which has raised concerns about starter homes making some developments unviable.
The British Property Federation’s policy director Ian Fletcher, said: “We are pleased to see that our calls for build to rent to be treated differently have been recognised.
“An unbroken block where all the units are for rent is much easier to manage and much more attractive to investors, which is why a mix of private and discounted market rent system works well.”
The consultation also includes proposed exemptions from the starter homes requirement where there are “overwhelming” viability constraints on the site.
The consultation states this could apply to developments with “exceptionally high infrastructure costs” or areas where there is “particularly low demand”.
“It would require clear evidence from a developer that the scheme could not support the starter homes requirement and that no affordable housing contributions are being provided,” the consultation states.
“The local authority must agree with this assessment.”
Plans to build 200,000 starter homes for first-time buyers under the age of 40 are currently being pushed forward as part of the Housing and Planning Bill, which is due to go to report stage at the House of Lords on 11 April.
The starter homes consultation closes on 18 May 2016.
Click here to read the full starter homes regulations document.
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