Housing and Planning Act 2016
2016 CHAPTER 22
An Act to make provision about housing, estate agents, rentcharges, planning and compulsory purchase.
[12th May 2016]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
PART 1New homes in England
CHAPTER 1Starter homes
1Purpose of this Chapter
The purpose of this Chapter is to promote the supply of starter homes in England.
2What is a starter home?
(1)In this Chapter "starter home" means a building or part of a building that-
(a)is a new dwelling,
(b)is available for purchase by qualifying first-time buyers only,
(c)is to be sold at a discount of at least 20% of the market value,
(d)is to be sold for less than the price cap, and
(e)is subject to any restrictions on sale or letting specified in regulations made by the Secretary of State (for more about regulations under this paragraph, see section 3).
(2)"New dwelling" means a building or part of a building that-
(a)has been constructed for use as a single dwelling and has not previously been occupied, or
(b)has been adapted for use as a single dwelling and has not been occupied since its adaptation.
(3)"Qualifying first-time buyer" means an individual who-
(a)is a first-time buyer,
(b)is at least 23 years old but has not yet reached the age of 40, and
(c)meets any other criteria specified in regulations made by the Secretary of State (for example, relating to nationality).
(4)"First-time buyer" has the meaning given by section 57AA(2) of the Finance Act 2003.
(5)"Purchase": the reference to a building or part of a building being available for purchase is to a freehold or a leasehold interest in the building or part being available for purchase.
(6)The "price cap" is set out in the table.
| Location of starter home | Price cap |
|---|---|
| Greater London | £450,000 |
| Outside Greater London | £250,000 |
(7)The Secretary of State may by regulations-
(a)amend the definition of "first-time buyer";
(b)disapply the age requirement in subsection (3)(b) in relation to specified categories of people;
(c)specify circumstances in which a dwelling may still be a starter home even if it is available for purchase by joint purchasers not all of whom meet the age requirement.
(8)The Secretary of State may by regulations amend the price cap; and the regulations may provide for different price caps to apply-
(a)for starter homes in different areas in Greater London;
(b)for starter homes in different areas outside Greater London.
(9)Before making regulations under subsection (8) the Secretary of State must consult-
(a)each local planning authority in England,
(b)the Mayor of London, and
(c)any other person the Secretary of State thinks appropriate.
(10)Regulations under this section may…