Starter Homes Scheme will be a Nightmare, Warns Kiely

Date: 13/3/2015

The government has said it will press ahead with plans to encourage developers to build starter homes on underused commercial and industrial sites.

Sara Whelan, the POS Policy Officer, told a Planning reporter "We don't believe that these sites exist as a previously overlooked resource. But certainly these kind of sites would be identified in local authorities' planning frameworks. Some of the sites will be in quite rural locations and not very suitable for housing. There aren't going to be any quick wins."

 Sara Whelan

Mike Kiely, POS Chair, has some concern over reduced infrastructure funding. He pointed out to Planning that the policy would require amendments to the CIL Regulations and the Planning At 2004. But he also voiced doubts about the obligation place don local authorities to police the valuation, sale and resale of the Starter Homes. "It's going to place a huge burden on authorities, and where is the funding for this to come from?" he asked.

Kiely envisages that legal agreements will be tied to Starter Homes requiring sellers to notify councils of a pending change of ownership, identifying the new owner and to provide evidence that the agreed price was 20 per cent below market value. "Presumably we'd end up having to go to the High Court to redress any sales that went through at unacceptable levels," he said. "I suspect it's going to be a nightmare."

Mike Kiely