Last week the Treasury and the Department for Environment, Food and Rural Affairs unveiled a package of proposals aimed at boosting rural productivity, a key element of which would involve amending planning rules to allow ‘starter homes’ to be built on Rural Exception Sites for the first time.
Starter Homes should be offered for sale at a minimum of 20% below the open market value of the property, and are expected to be offered to people who have not previously been a home buyer and want to own and occupy a home, and who are below the age of 40 at the time of purchase.
To deliver the minimum 20% discount, the Government’s advice encourages local planning authorities not to seek section 106 affordable housing contributions or any tariff-based contributions to general infrastructure within the area.
The proposal to relax planning rules covering the construction of low cost ‘starter homes’ in rural towns and villages were announced as part of plans to boost the rural economy which also include moves to make neighbourhood planning more straightforward, as well as plans to review the existing threshold for the conversion of agricultural buildings into residential buildings.
If you would like to find out more about how these proposals could effect your project then please do not hesitate to contact us.