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Starter Home Initiative

This content applies to England

The Starter Home Initiative gives a minimum 20 per cent discount of the purchase price of  a new-build home to first-time buyers aged under 40.

The government has relaxed certain planning requirements in order to encourage house builders to reduce the price of a property that will qualify under the scheme.

Starter homes

Starter homes are defined by the government as those built on previously under-used commercial or industrial land that is not currently assigned for housing development. In order to qualify under the scheme, the house builder will have been granted planning permission after 1 March 2015.

The discounted price of the home should not exceed a maximum price threshold of £250,000 outside London and £450,00 in London. 

Information about the scheme, including how to register for information about qualifying properties in the prospective buyer's local area, can be found on the New Homes website

Who can apply

Only first time buyers under the age of 40 are eligible for the scheme. Potential buyers will need to raise a mortgage on the discounted purchase price.

Interaction with Help to Buy schemes

Anyone wanting to buy a Starter Home can also apply for a Help to Buy equity loan.

Restrictions on sale of starter homes

Under the Starter Home Initiative, a home purchased under the scheme cannot be resold or let at market value within five years of being purchased. Anyone wanting to sell a Starter Home before the end of five years will have to pass on the the initial discount of at least 20 per cent.


The information on this page applies only to England. Go to Shelter Cymru for information relating to Wales.

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