20 per cent off your first home: Tories offer first-time buyers under 40 special discount David Cameron will unveil dramatic extension to party's Help to Buy scheme 'Starter homes' will be available at 20 per cent less than their market value First-time buyers under the age of 40 will be offered discount on new homes Discount possible because housebuilders would be exempt from some taxes
By James Chapman, Daily Mail Political Editor Link First-time buyers under the age of 40 are to be offered 20 per cent discounts on 100,000 new homes.
David Cameron is to unveil a dramatic extension of the party’s flagship Help to Buy scheme, which aims to get people on the housing ladder.
Under the scheme, 100,000 houses would be built on so-called ‘brownfield’ land and reserved for sale only to young people buying their first homes.
The ‘starter homes’ will be available throughout England and offered at prices 20 per cent less than their market value.
So a house worth £200,000 could be bought by a first-time buyer for £160,000 – a reduction of £40,000.
The discount will be possible because a Conservative government would exempt housebuilders from some taxes and allow the release of cheap brownfield sites – land formerly used for industrial or commercial purposes – to build these homes on. Builders would be obliged to pass their savings on to buyers.
The scheme, to be announced at the Conservatives’ final party conference before next year’s General Election, is the latest attempt to echo the focus on property ownership of Margaret Thatcher’s government.
Mr Cameron will say: ‘We want to help more young people achieve the dream of home ownership so today I can pledge we will build 100,000 homes for young, first-time buyers.
‘We will make these starter homes 20 per cent cheaper by exempting them from a raft of taxes and by using brownfield land. I don’t want to see young people locked out of home ownership.
'We’ve already started to tackle the problem with Help to Buy mortgages – and these new plans will help tens of thousands more people to buy their first home.’
As well as helping struggling young people wanting to buy a home, Tory strategists believe the policy will appeal to parents and grandparents worried about their families’ prospects.
Developers will have to demonstrate before planning approval is given that the houses they are planning to build will be at least a fifth cheaper than comparable houses in order to qualify for the cheaper plots and tax exemptions.
The developments will avoid most of the taxes and regulations that are normally imposed on other new homes, like the community infrastructure levy, imposed by local authorities, and the ‘Section 106’ requirement that a certain number of homes must be affordable.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
Can anyone see the obvious here? The government is getting raking in over 20% worth of tax on each house sold.
So people buying houses today are taking out 30 year loans to pay 40,000 pounds in tax immediately.
Let that sink in. You are taking out a personal mortgage so you can have the privilege to pay tax. Furthermore that tax bill you are delighted to acquire, you will pay off over 30 years with interest compounding on that tax bill.
The whole economic system funding the government is an unsustainable house of cards. And Australia is no different.
The idea is being torn to shreds on twitter. It may buy him votes though.
Agreed, think there's another 6 months before they need to call an election so with a bit of creative accounting it should be enough to get them over the line.
The thing that amazes me is how long they've been robbing peter to pay paul, and yet still the whole thing stands up. It's a pretty amazing feat.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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