Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Accepted
We asked the Department about the similarities between the new First Homes policy and the...
Conclusion
We asked the Department about the similarities between the new First Homes policy and the Starter Homes policy. The Department emphasised how they differ: • First Homes will be sold at a higher discount of at least 30%, compared with 20% for Starter Homes; • the discount will exist in perpetuity—it will be passed on to future buyers when First Homes are resold, unlike Starter Homes where the discount accrues to the homeowner over time; • First Homes will be sold only to local first-time buyers; and • First Homes will be delivered through the existing planning system so, unlike Starter Homes, are not dependent on new legislation.20 12 Qq 41–48 13 Q 87; C&AG’s Report, Figure 3 14 Qq 50–51 15 Q 63 16 Qq 52–54 17 Q 63 18 Q 58 19 Q 64 20 Qq 82–83 10 Starter Homes
Government response summary AI-generated
The department has developed and started testing a legal framework with HM Land Registry to ensure First Homes discounts are passed on perpetually and will continue to work with stakeholders to ensure a smooth secondary market.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
2.4 The department has worked with HM Land Registry to develop a legal framework to ensure the discounts and restrictions are passed on to future purchasers and has already started testing this process with parts of the industry and will set this out clearly and publicly in due course. The department will continue to work with local authorities, conveyancers, estate agents, consumers and others to ensure the secondary market works smoothly and purchasers are fully aware of their requirements and restrictions.
Read the full response on Parliament ↗