18th January 2016 •
But here's the thing: these developers then give these houses to housing associations who rent to others below the market rate (usually those on lower incomes). Since social renting is reducing, housing association projects are becoming underfunded. This means that subsidized rental homes are now being offered as starter homes, to be sold off at 20-25% below market value. Yes, it’s complex, but look at it this way: Short term, this supplies younger people with the affordable starter homes that they so desperately need. Sold at a discount of 20% of market value, houses will be capped at £450,000 in London and £250,000 in the rest of England.
But there’s a catch (there’s always a catch)…