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Experience Invest

Government Announces Pilot Schemes for New Homes

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Hello, and happy new year from the team at the Experience Invest blog. We are hopeful that 2016 will bring many positive developments for property investors. The house building industry certainly looks promising, especially for smaller and medium-sized developers, who look set to benefit from the government’s plans to directly commission thousands of new homes.

A large percentage of the new homes planned will be affordable, allowing many eager buyers to take the first step onto the housing ladder. In order to get the proposals underway, the government has announced details of five pilot schemes where many of these new ‘starter’ homes will be built. Each scheme is located on ‘publicly owned’ brownfield land.

Five pilot schemes announced

  • Connaught Barracks in Dover – a former Ministry of Defence site with a current allocation for 500 housing units.
  • Northstowe in Cambridgeshire – former Ministry of Defence land that will see 10,000 new homes developed alongside a town centre, community facilities and commercial space.
  • Lower Graylingwell in Chichester – a former hospital site which offers a fantastic opportunity for development, which will see locally supported housing provide with a minimum of 40% starter homes.
  • Daedelus on Waterfront in Gosport – former Ministry of Defence land which is being development by the HCA, including a new college and commercial units. The ‘waterfront’ part of the site has potential for around 250 new homes.
  • Old Oak Common in north west London – 24,000 new homes including low cost homes are planned for this brownfield site; the development will include retail, schools and leisure facilities.

Starter homes

A starter home is defined by the government as ‘a home sold to a first time buyer under 40, for at least a 20% discount to market value, with a cap on the value of the property.’ To gain full benefit of the discount the purchaser must live in the home for at least five years.

According to government figures, around 200,000 starter homes are planned by 2020. As reported on the Property Wire website, Prime Minister David Cameron, believes the move to ‘directly commission’ homes is a huge change in government policy. Commenting on the plans, he said: “Nothing like this has been done on this scale in three decades, the government rolling its sleeves up and directly getting homes built.”

About Experience Invest

Experience Invest is a London-based independent property company specialising in residential investments, student property and care home investments. The company operates across the UK and internationally, and is regularly featured in the property news – see The Telegraph, on Yahoo Finance, and by Reuters for examples of recent articles.

Experience Invest works with a range of clients, from first time investors to high-net worth individuals, offering them unique access to properties not always available to individual investors.